The federally mandated minimum wage in the United States has not increased since 2009, meaning that individuals working minimum wage jobs have taken a real terms pay cut for the last twelve years. There are discrepancies between states – the minimum wage in California can be as high as 15.50 U.S. dollars per hour, while a business in Oklahoma may be as low as two U.S. dollars per hour. Additionally, the impact of decreased purchasing power due to inflation will impact different parts of society in different ways with stark contrast in average wages due to both gender and race.
Minimum wage rates in the United States in 2024, by state
We welcome your email, but please understand that if you are not already a client of BTLG, we cannot consider offering you representation (nor do we represent you) until we confirm that doing so would not create a conflict of interest. Effective August 1, 2014, a large employer means an enterprise whose gross revenue is not less than $500,000. A small employer means an enterprise whose gross revenue is less than $500,000. Vermont An employee of a hotel, motel, tourist us minimum wage 2020 place, or restaurant who customarily and regularly receives more than $120.00 per month in tips for direct and personal customer service. If you are an app-based worker who has been deactivated since January 1, 2025, a new law may provide you with some additional rights – click here to learn more. Equal Pay Act of 1963 (Public Law 88-38)Equal pay provisions prohibit sex-based wage differentials between men and women employed in the same establishment who perform jobs requiring equal effort, skill, and responsibility.
States whose minimum wage equals the federal Minimum wage
For the federal minimum wage to increase, Congress must act to send legislation to the president to sign into law. Minimum wage laws are complicated, and they’re constantly changing. If your company has employees in multiple states, keeping up with these updates can be daunting. While some states are on a schedule for annual increases to eventually reach $15 an hour, others still adhere to the federal minimum. While some states showed strong movements, the unchanged federal minimum wage due to congressional gridlock dampened national growth. States with indexation to inflation and staged hikes experienced gains, while those adhering to the federal minimum left the overall average subdued.
U.S. inflation rate versus wage growth 2020-2025
The federal minimum wage for covered nonexempt employees is $7.25 per hour. The Economic Policy Institute maintains a database of each state’s minimum wage and recent changes. According to that report, 21 states increased their minimum wages as of December 31 or January 1. Assembly Bill 456 resulted in the minimum wage being increased to $9 for employees who do not receive benefits and $8 for employees with benefits on July 1, 2020. Guardian HR provides human resources and employment law support services to companies nationwide.
The most recent adjustment took effect on July 24, 2009, raising the rate to $7.25 per hour. As of 2025, this marks the longest stretch in the law’s history without an update. Until Congress acts again, the federal minimum wage will remain frozen at its current level. Unlike the minimum wage in many states, the federal minimum wage is not indexed to inflation. This means it doesn’t automatically adjust each year to account for changes in the cost of living.
Recent Trends – National average minimum wage
There is no separate rate for tipped employees, so they must be paid the standard minimum wage. Maine’s minimum wage increased to $12.00, and the tipped minimum wage is now $6. Proposition 206 was passed in 2016 and mandates https://www.jasecuritysystems.co.uk/how-to-value-plant-and-machinery-equipment/ that the state minimum wage be increased to $12.00 in 2020. The table below lists the current prevailing 2025 minimum wage rates for every state in the United States. Click any state for details about the minimum wage, exemptions, and other state labor laws.
Additionally, if your business is located in one state, but you have employees (such as remote workers) working in another jurisdiction, the minimum wage in the location where the employee performs work generally applies. This is a list of the minimum wages (per hour) in each state and territory of the United States, for jobs covered by federal minimum wage laws. The federal minimum wage is the nationwide pay floor established by the Fair Labor Standards Act. State (and sometimes city or county) minimum wagesare separate laws that can set a higher—or occasionally lower—rate and may include their own indexing formulas, exemptions, and enforcement rules. Employers must always pay the highest applicable rate in the location where the employee performs the work.
- If a mandatory law change occurs, we immediately ship an updated poster to your workplace.
- As a company, you need to meet the federal minimum wage 2020 requirements or state minimum wage requirement; whichever is higher.
- Some states set subminimum rates for minors and/or students or exempt them from coverage, or have a training wage for new hires.
- In 2020, the minimum wage increased in 24 states and Washington, D.C. The size of increases ranged from $0.10 in Florida to $1.50 in New Mexico, Washington, and New York City for certain employees.
Top Strategies to Reduce Employee Turnover in 2024
For more information on the minimum wage increase and which workers are covered, visit the Health Care Worker Minimum Wage FAQs. For more information on the clinic waiver program, visit the Health Care Minimum Wage Clinic Waiver Program FAQs and access the clinic waiver application here. The federal minimum wage is currently at $7.25 — money that has stayed the same since 2009. In the late 1960s, minimum wage was worth over $14 in balance sheet today’s dollars. Ogletree Deakins’ Wage and Hour Practice Group features attorneys who are experienced in advising and representing employers in a wide range of wage and hour issues, and who are located in Ogletree Deakins’ offices across the country.
Changes to state minimum wage laws in 2019
Simply replace your original poster with the newly updated poster to remain compliant. The Replacement Service is $54.95/year using promo code GUARDIANCPP.
