State Minimum Wages (2024)

Summary

Currently, 30 states and Washington, D.C., have minimum wages above the federal minimum wage of $7.25 per hour.

Five states have not adopted a state minimum wage: Alabama, Louisiana, Mississippi, South Carolina and Tennessee. Two states, Georgia and Wyoming, have a minimum wage below $7.25 per hour. In all seven of these states, the federal minimum wage of $7.25 per hour applies.

State Minimum Wages

The table below reflects current state minimum wages in effect as of Jan. 1, 2024, as well as future enacted increases.

State Minimum Wage Legislation

State

Minimum Wage

Future Enacted
Increases

Indexed Automatic
Annual Adjustments

Alabama

none

Alaska

$11.73

Indexed annual increases began
Jan. 1, 2017. (2014 ballot measure)

American Samoa

Varies 1

Arizona

$14.35

Rate increased annually based on cost of living beginning Jan. 2021 (2016 ballot measure)

Arkansas

$11.00

California

$16.00

Indexed annual increases based on CPI begin Jan. 1, 2023

Colorado

$14.42

Rate increased annually based on cost of living beginning Jan. 1 2021 (2016 ballot measure)

Connecticut

$15.69 2

Indexed annual increases based on the employment cost index begin January 1, 2024

Delaware

$13.25

$15 eff. 1-1-25

D.C.

$17.00

Indexed annual increases based on CPI begin July 1, 2021

Florida

$12.00

$13 eff. 9-30-24

$14 eff. 9-30-25

$15 eff. 9-30-26

Annual increase based cost of living. (Constitutional amendment 2004)

Georgia

$7.25

Guam

$9.25

Hawaii

$14.00

$16 eff. 1-1-26

$18 eff. 1-1-28 

Idaho

$7.25

Illinois

$14.00 3

$15 eff. 1-1-25 4

Indiana

$7.25

Iowa

$7.25

Kansas

$7.25

Kentucky

$7.25

Louisiana

None

Maine

$14.15

Indexed annual increases based on CPI begin Jan 1, 2021

Maryland

$15.00

Massachusetts

$15.00 4

Michigan

$10.33

$10.56 eff. 1-1-2025

$10.80 eff. 1-1-2026

$11.04 eff. 1-1-2027

$11.29 eff. 1-1-2028

$11.54 eff. 1-1-2029

$11.79 eff. 1-1-2030

$12.05 eff. 1-1-2031

*2021 wage increase delayed; see 408.934(2) of Public Act 337 of 2018, as amended.

Minnesota

$10.85/$8.85 5

Indexed annual increases begin
Jan. 1, 2018.

(2014 legislation)

Mississippi

None

Missouri

$12.30 6

Minimum wage increased or decreased by cost of living starting Jan. 1, 2024. (2018 ballot measure)

Montana

$10.30 7

Increases done annually based on the CPI and effective Jan. 1 of the following year. (2006 ballot measure)

Nebraska

$12.00

 $13.50 eff. 1-1-25

$15 eff. 1-1-26

 Beginning Jan 1, 2027, the minimum wage will increase based on the cost-of-living increase as measured by the Consumer Price Index. (2022 ballot measure).

Nevada

$11.25/$10.25

$12.00 eff. 7-1-24

Increases subject to the federal minimum wage and consumer price index. Increases take effect July 1. (Constitutional amendment 2004/2006).

New Hampshire

$7.25

New Jersey

$15.13 8

Indexed annual increases based on the CPI beginning 2025. (2019 legislation)

New Mexico

$12.00

New York

$16.00/15.00 9

North Carolina

$7.25

North Dakota

$7.25

Northern Mariana Islands

$7.25

Ohio

$10.45 10

Indexed annual increases based on the CPI. (Constitutional amendment 2006)

Oklahoma

$7.25 11

Oregon

$14.20 12

Indexed annual increases based on the CPI are effective July 1, 2023 (2016 legislation)

Pennsylvania

$7.25

Puerto Rico

$9.50/$5.08 13

Rhode Island

$14.00

 $15 eff. 1-1-25

South Carolina

None

South Dakota

$11.20

Annual indexed increases began
Jan. 1, 2016. (2014 ballot measure.)

Tennessee

None

Texas

$7.25

Utah

$7.25

Vermont

$13.67

Beginning Jan. 1, 2019, minimum wage increased annually by 5% or the CPI, whichever is smaller; it cannot decrease. Note: Vermont started indexing in 2007 but enacted additional increases in 2014.
(2014 legislation)

Virgin Islands

$10.50

Virginia

$12.00

 $13.50 eff. 1-1-25

$15 eff. 1-1-26

 Annual indexed increases begin Oct. 1, 2026

Washington

$16.28

Annual indexed increases began Jan. 1, 2020. (ballot measure 2016)

West Virginia

$8.75

Wisconsin

$7.25

Wyoming

$7.25

Notes

1 American Samoa: The Fair Minimum Wage Act of 2007 (Public Law 110-28) sets minimum wage rates within American Samoa and provides for additional increases in the minimum wage of $0.50 per hour each year on May 25, until reaching the minimum wage generally applicable in the United States. The wage rates are set for particular industries, not for an employee's particular occupation. The rates are minimum rates; an employer may choose to pay an employee at a rate higher than the rate(s) for its industry.

2 Connecticut: The Connecticut minimum wage rate automatically increases to 1/2 of 1 percent above the rate set in the Fair Labor Standards Act if the Federal minimum wage rate equals or becomes higher than the State minimum.

3 Illinois: Employers with 50 or fewer full time employees are eligible for a tax credit equal to a certain percentage of the cost of their annual wage increases. Employers are only eligible for the credit if the average wage for employees making $55,000 or less increases over the year. The amount of the credit that can be claimed is as follows: 25 percent for the 2020 reporting period; 21 percent for 2021; 17 percent for 2022; 13 percent for 2023; 9 percent for 2024; 5 percent for 2025; 5 percent for 2026; 5 percent for 2027, but only for employers with no more than five employees.

4 The Massachusetts minimum wage rate automatically increases to 10 cents above the rate set in the Fair Labor Standards Act if the Federal minimum wage equals or becomes higher than the State minimum.

5 Minnesota: With the passage of H.B. 2091 (2014), the annual sales volume threshold was reduced to $500,000. For large employers, with an annual sales volume of $500,000 or more, the minimum wage is currently $9.50; for small employers, those with an annual sales volume of less than $500,000, the minimum wage is $7.75.

6 Missouri - In addition to the exemption for federally covered employment, the law exempts, among others, employees of a retail or service business with gross annual sales or business done of less than $500,000.

7 Montana: the $4.00 rate applies to businesses with gross annual sales of $110,000 or less; $8.15 applies to all others.

8 New Jersey: For small employers (six employees or fewer), the schedule of increases is as follows: $10.30 eff. 1-1-20; $11.10 eff. 1-1-21; $11.90 eff. 1-1-22; $12.70 eff. 1-1-23; $13.50 eff. 1-1-24; $14.30 eff. 1-1-25; $15.00 eff 1-1-26.

9 New York: The new minimum wage varies across the state based on geographical location and, in New York City, employer size.

Location

Minimum Wage as of 12/31/2021*, ***

Minimum Wage as of 12/31/2022*, ***

Tipped Service Employees**

Tipped Food Service Workers**

New York City

$15.00

$15.00

$12.50 Cash Wage
$2.50 Tip Credit

$10.00 Cash Wage
$5.00 Tip Credit

Long Island & Westchester

$15.00

$15.00

$12.50 Cash Wage
$2.50 Tip Credit

$10.00 Cash Wage
$5.00 Tip Credit

Remainder of New York State

$13.20*

$14.20*

As of 12/31/2021

$11.00 Cash Wage
$2.20 Tip Credit

As of 12/31/2022

$11.85Cash Wage
$2.35Tip Credit

As of 12/31/2021

$8.80 Cash Wage
$4.40 Tip Credit

As of 12/31/2022

$9.45Cash Wage
$4.75Tip Credit

10 Ohio: $7:25 for employers grossing $299,000 or less

11 Oklahoma: Employers of ten or more full-time employees at any one location and employers with annual gross sales over $100,000 irrespective of number of full-time employees are subject to federal minimum wage; all others are subject to state minimum wage of $2.00 (OK ST T. 40 § 197.5).

12 Oregon: In addition to the new standard minimum wage rate, SB 1532 sets out a higher rate for employers located in the urban growth boundary, and a lower rate for employers located in nonurban counties. Their respective planned increases are below.

Oregon Minimum Wage

Year

Portland Metro

Nonurban Counties

July 1, 2016

$9.75

$9.50

July 1, 2017

$11.25

$10

July 1, 2018

$12

$10.50

July 1, 2019

$12.50

$11

July 1, 2020

$13.25

$11.50

July 1, 2021

$14

$12

July 1, 2022

$14.75

$12.50

July 1, 2023

$1.25 over standard minimum wage

$1 below standard minimum wage

13 Puerto Rico: Employers covered by the Federal Fair Labor Standards Act (FLSA) are subject to the Federal minimum wage of $7.25. Employers not covered by the FLSA will be subject to a minimum wage that is at least 70 percent of the Federal minimum wage or the applicable mandatory decree rate of $5.08, whichever is higher. The Secretary of Labor and Human Resources may authorize a rate based on a lower percentage for any employer who can show that implementation of the 70 percent rate would substantially curtail employment in that business.Other Exceptions

  • Missouri, Oklahoma, Texas, Puerto Rico, Utah and Virginia exclude from coverage any employment that is subject to the Federal Fair Labor Standards Act.
  • Hawaii, Kansas and Michigan exclude from coverage any employment that is subject to the Federal Fair Labor Standards Act, if the State wage is higher than the Federal wage.
  • The Georgia state minimum wage is $5.15. Employees covered under the federal Fair Labor Standards Act are subject to the federal minimum wage of $7.25, but those not covered under the FLSA may be paid the state minimum wage of $5.15.
State Minimum Wages (2024)

FAQs

What is the answer to the minimum wage? ›

The federal minimum wage is $7.25 per hour. This rate applies to covered nonexempt workers. The minimum wage for employees who receive tips is $2.13 per hour. The amount of tips plus the $2.13 must reach at least $7.25 per hour.

What are some arguments about minimum wage? ›

There's a divide between those who argue that increasing the minimum wage would reduce poverty and stimulate consumer spending and those who believe it could lead to higher unemployment and negatively impact small businesses and the economy.

Why is the minimum wage not enough? ›

California's $16-an-hour minimum wage may be much higher than a “poverty wage” by federal standards, but high housing costs still make it difficult for low wage workers to live and make ends meet in the state, according to a new report by the state's Legislative Analyst's Office.

Why should states raise minimum wage? ›

Raising the minimum wage increases consumer spending and boosts the economy. A study by Doug Hall and David Cooper estimated that a $2.55 increase in the minimum wage would increase the earnings of low-wage workers by $40 billion and result in a significant increase in GDP and employment.

What is the minimum wage by state? ›

State Minimum Wages
State Minimum Wage Legislation
California$16.00Indexed annual increases began Jan. 1, 2023. (2016 legislation)
Colorado$14.42Indexed annual increases began Jan. 1, 2021. (2016 ballot measure)
Connecticut$15.69 2Indexed annual increases will begin Jan. 1, 2024 (2019 legislation)
Delaware$13.25
53 more rows

How do you survive on minimum wage? ›

17 Tips for Living on Minimum Wage
  1. Evaluate Your Overall Spending. ...
  2. Create and Stick to a Budget. ...
  3. Put Some Money Towards Savings. ...
  4. Look Into Government Benefits. ...
  5. Save on Food. ...
  6. Find Additional Ways to Increase Your Income. ...
  7. Lower Your Housing Costs. ...
  8. ​​Work Towards Reducing Your Debt.

What are the pros and cons of minimum wage? ›

Raising the minimum wage could help low-wage workers escape poverty and keep up with inflation. Increased wages may lead to higher consumer spending and reduced reliance on government assistance. Higher labor costs from wage increases could lead to unemployment and higher product prices.

What is the real reason for the minimum wage? ›

The purpose of the minimum wage was to stabilize the post-depression economy and protect the workers in the labor force. The minimum wage was designed to create a minimum standard of living to protect the health and well-being of employees.

Which is an argument in favor of a minimum wage quizlet? ›

The elasticity argument for the minimum wage claims that the income gains for workers as a group will be large, and the unemployment effect will be small.

Is $25 an hour a living wage? ›

An analysis of the living wage (as calculated in December 2022 and reflecting a compensation being offered to an individual in 2023), compiling geographically specific expenditure data for food, childcare, health care, housing, transportation, and other necessities, finds that: The living wage in the United States is ...

What are the negative effects of minimum wage? ›

Increasing the minimum wage is expected to lift individuals out of poverty and improve work ethic, however, it also comes with many possible negative implications, such as inflation and a loss of jobs. U.S. Department of Labor.

How much is $16 an hour annually? ›

Frequently Asked Questions. $16 an hour is how much a year? If you make $16 an hour, your yearly salary would be $33,280.

Does minimum wage reduce poverty? ›

The higher federal minimum wage would also lift some 400,000 workers out of poverty, according to the CBO study. At the same time, the average estimate is that about 700,000 workers would lose their jobs. The median estimate is a reduction of 500,000 workers.

Does minimum wage cause inflation? ›

No, the federal minimum wage is not tethered to inflation. The annual minimum wage set by the federal government does not change each year in response to changes in prices.

Are minimum wages good for the economy? ›

The most recent analysis from the Economic Policy Institute found that increasing the minimum wage to $15 by 2025 would generate $107 billion in higher wages. Their earlier analysis indicates that an increase from $7.25 to $9.80 per hour between 2012 and 2014 would have generated “approximately 100,000 new jobs.”

What will happen if minimum wage is $15? ›

Raising the federal minimum wage to $15 an hour is a policy goal for many lawmakers. Increasing the minimum wage is expected to lift individuals out of poverty and improve work ethic, however, it also comes with many possible negative implications, such as inflation and a loss of jobs.

Why does the US need at least a $17 minimum wage? ›

Raising the Minimum Wage Would Particularly Benefit Women and Workers of Color. per year is the additional income on average a $17 minimum wage would deliver to Black workers who work year-round. of Latinx workers would get a raise if the federal minimum wage were increased to $17.

What is the lowest minimum wage in the world? ›

The Central African Republic is among the lowest minimum wage in the world, at 218.75 CFA Francs per hour, which is equivalent to . 36 USD per hour. In Kyrgyzstan, the minimum wage was updated in 2024 and is among the lowest is the world, at 2,460 Kyrgyzstani SOM.

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