Understanding Minimum Wage: A Guide for Employers
As an employer, it's crucial to understand and comply with minimum wage laws to ensure fair compensation for your employees. Minimum wage regulations vary by location and can change over time, so staying informed is essential. Below, we've compiled key information to help you navigate minimum wage requirements effectively.
- What is Minimum Wage?
- Federal Minimum Wage
- Federal Minimum Wage Rate for 2024
- State and Local Minimum Wage Rates for 2024
- State Minimum Wage
- Local Minimum Wage
- Overview of 2024 Minimum Wage Rates for All 50 States and Their Localities
- California City and County Minimum Wages in 2024
What is Minimum Wage?
The minimum wage is the lowest legal wage that employers can pay their employees for hourly work, set by federal, state, or local governments to ensure fair compensation for labor. Many states and cities have their own minimum wage laws, which vary based on factors such as employer size, industry, and location. Familiarizing yourself with these specific laws is crucial for ensuring compliance and fair compensation for employees.
Federal Minimum Wage
The federal minimum wage refers to the lowest hourly wage that employers are legally required to pay their employees for covered non-exempt work under the Fair Labor Standards Act (FLSA) in the United States. It serves as a baseline standard to ensure that workers receive fair compensation for their labor.
Federal Minimum Wage Rate for 2024
As of 2024, the federal minimum wage is set at $7.25 per hour. This rate is established by federal law and may be subject to periodic adjustments by Congress. It's important for employers to stay updated on any changes to the federal minimum wage to ensure compliance with wage laws.
State and Local Minimum Wage Rates for 2024
In addition to the federal minimum wage, many states and localities have their own minimum wage laws that may differ from federal rates. Employers must be aware of both state and local minimum wage rates to ensure compliance with applicable wage laws.
State Minimum Wage
The state minimum wage is the lowest hourly wage that employers are legally required to pay their employees within a specific state. Each state sets its own minimum wage rate, which may be higher than the federal minimum wage.
Local Minimum Wage
The local minimum wage is the lowest hourly wage that employers are legally required to pay their employees within a specific city or county. Local minimum wage rates can be higher than both federal and state minimum wages and are set by local ordinances.
Below is an overview of the minimum wage rates for 2024 for all 50 states and their respective localities:
Overview of 2024 Minimum Wage Rates for All 50 States and Their Localities
Alabama
Alabama does not have a state-mandated minimum wage law. Therefore, employers in Alabama who are subject to the Fair Labor Standards Act (FLSA) are required to pay the federal minimum wage, which is currently set at $7.25 per hour.
Alaska
In 2024, Alaska's minimum wage stands at $11.73 per hour, with adjustments made annually according to a predefined formula.
Arizona
In 2024, Arizona's minimum wage is set at $14.35 per hour.
Arkansa
In 2024, Arkansas requires employers with four or more employees to pay a minimum wage of $11.00 per hour.
California
As of 2024, California's minimum wage is $16.00 per hour and is subject to annual adjustments based on a predefined formula. Additionally, various localities within California may have their own minimum wage rates that differ from the state's standard.
California City and County Minimum Wages in 2024
| Locality | 2024 minimum wage per hour |
|---|---|
| Alameda | $17.00 |
| Belmont | $17.35 |
| Berkeley | $18.67 |
| Burlingame | $17.03 |
| Cupertino | $17.75 |
| Daly City | $16.62 |
| East Palo Alto | $17.00 |
| El Cerrito | $17.92 |
| Emeryville | $19.36 |
| Foster City | $17.00 |
| Fremont | $17.30 |
| Half Moon Bay | $17.01 |
| Hayward | $16.90 |
| Los Altos | $17.75 |
| Los Angeles | $17.28 |
| Malibu | $17.27 |
| Menlo Park | $16.70 |
| Milpitas | $17.70 |
| Mountain View | $18.75 |
| Novato | $16.60 |
| Oakland | $16.50 |
| Palo Alto | $17.80 |
| Petaluma | $17.45 |
| Redwood City | $17.70 |
| Richmond | $17.20 |
| San Carlos | $16.87 |
| San Diego | $16.85 |
| San Francisco | $18.67 |
| San Jose | $17.55 |
| San Mateo | $17.35 |
| San Mateo County (unincorporated) | $17.06 |
| Santa Clara | $17.75 |
| Santa Monica | $17.27 |
| Santa Rosa | $17.45 |
| Sonoma | $17.60 |
| South San Francisco | $17.25 |
| Sunnyvale | $18.55 |
| West Hollywood | $19.08 |
Colorado
In 2024, Colorado's minimum wage is $14.42 per hour, with provisions for various industries including retail and service, commercial support service, food and beverage, and health and medical sectors.Additionally, certain cities and counties within the state may establish their own local minimum wage rates, potentially differing from the statewide standard.
| Locality | 2024 minimum wage per hour |
|---|---|
| Boulder County | $15.69 |
| Denver | $18.29 |
| Edgewater | $15.02 |
Connecticut
In 2024, Connecticut's minimum wage is $15.69 per hour
Delaware
In 2024, Delaware's minimum wage stands at $13.25 per hour. If the federal minimum wage exceeds the state rate, Delaware adopts the federal rate by reference.
Florida
For the year 2024, Florida's minimum wage is $12.00 per hour. It follows an annual adjustment based on a predetermined formula. Additionally, the minimum wage in Florida is set to increase by $1.00 every September 30th until reaching $15.00 on September 30, 2026.
Georgia
In 2024, Georgia sets its minimum wage at $5.15 per hour, applicable to employers with six or more employees. However, the state law excludes from coverage any employment subject to the federal Fair Labor Standards Act when the federal rate exceeds the state rate. Employers subject to the Fair Labor Standards Act must pay the current federal minimum wage of $7.25 per hour.
Hawaii
In 2024, Hawaii's minimum wage is $14.00 per hour, and domestic service workers are covered by Hawaii's minimum wage regulations. The state law exempts employment covered by the federal Fair Labor Standards Act unless the state wage rate exceeds the federal rate.
Idaho
In 2024, Idaho's minimum wage remains at $7.25 per hour.
Illinois
In 2024, Illinois set its minimum wage at $14.00 per hour for employers with four or more employees, excluding family members. However, in Chicago, there are different minimum wage rates: $15.80 per hour for employers with 21 or more workers, and $15.00 per hour for employers with four to 20 workers.
Indiana
In 2024, Indiana maintains a minimum wage of $7.25 per hour, applicable to employers with two or more employees.
Iowa
In 2024, Iowa's minimum wage remains at $7.25 per hour. If the federal minimum wage rate is set below this, Iowa's minimum wage equals the federal rate.
Kansas
In 2024, Kansas maintains its minimum wage at $7.25 per hour. The state law excludes from coverage any employment subject to the federal Fair Labor Standards Act.
Kentucky
In 2024, Kentucky's minimum wage remains at $7.25 per hour. If the federal minimum wage rate exceeds the state rate, Kentucky adopts the federal rate by reference.
Louisiana
Louisiana does not have a state-mandated minimum wage law. Employers subject to the Fair Labor Standards Act must adhere to the current federal minimum wage of $7.25 per hour.
Maine
In 2024, Maine's minimum wage is $14.15 per hour. If the highest federal minimum wage exceeds the state minimum wage, Maine's minimum wage will increase to match the federal rate, effective on the same date as the federal increase. Additionally, Maine's minimum wage is adjusted annually according to a predetermined formula.Additionally, starting January 1, 2024, the City of Portland sets its minimum wage at $15 per hour for hourly employees or $7.50 for service employees. Similarly, the minimum wage in the City of Rockland is $15.00 per hour.
Maryland
In 2024, Maryland's minimum wage stands at $15.00 per hour. Additionally, counties such as Montgomery and Howard have set higher local minimum wages.
Howard County
In 2024, Howard County has set minimum wage rates that employers must follow, as determined by the Howard County Council.
Effective January 1, 2024, smaller employers are required to pay $15.00 per hour. Effective July 1, 2024, Howard County Government mandates a minimum wage of $16.00 per hour.
Starting January 1, 2025, all employers must pay a minimum wage of $16.00 per hour.
Effective January 1, 2026, smaller employers' minimum wage increases to $15.50 per hour.
Effective July 1, 2026, the minimum wage for smaller employers rises again to $16.00 per hour.
Montgomery County
In 2024, Montgomery County has set minimum wage rates that employers must follow
Starting January 1, 2024, Montgomery County sets varying minimum wage rates based on business size: Large employers (51 employees or more) are required to pay $16.70 per hour, mid-sized employers (11-50 employees) $15.00 per hour, and small employers (1-10 employees) $15.00 per hour. Additionally, effective July 1, 2024, Montgomery County increases its minimum wage rates: Large employers must pay $17.15 per hour, mid-sized employers $15.50 per hour, and small employers $15.00 per hour.
Massachusetts
In 2024, Massachusetts set its minimum wage at $15.00 per hour. The state ensures that its minimum wage rate remains at least $0.50 higher than the effective federal minimum rate.
Michigan
In 2024, Michigan's minimum wage is set at $10.33 per hour and applies to employers with two or more employees. The state law excludes from coverage any employment subject to the federal Fair Labor Standards Act unless the state wage rate exceeds the federal rate. Additionally, Michigan's minimum wage is adjusted annually based on a set formula.
Minnesota
In 2024, Minnesota's minimum wage rates are set based on employer size. For large employers (enterprises with annual revenues of $500,000 or more), the minimum wage is $10.85 per hour. For small employers (enterprises with annual revenues of less than $500,000), the minimum wage is $8.85 per hour.
Additionally, the cities of Minneapolis and St. Paul have their own minimum wage rates for 2024. The minimum wage in Minnesota is adjusted annually based on a set formula.
Minneapolis City
In 2024, the minimum wage in the City Minneapolis will increase to $15.57 per hour. Starting January 1, 2024, larger employers (over 100 employees) and franchises must pay this rate. By July 1, 2024, all other employers (100 or fewer employees) will also be required to pay $15.57 per hour.
Saint Paul City
In Saint Paul, starting January 1, 2024, businesses with more than 10,000 employees, as well as City of Saint Paul employees, must pay a minimum wage of $15.57 per hour. By July 1, 2024, large businesses with 101 to 10,000 employees will also be required to pay at least $15.57 per hour.
Mississippi
Mississippi does not have a state-mandated minimum wage law. Employers subject to the Fair Labor Standards Act are required to pay the current federal minimum wage of $7.25 per hour.
Missouri
In 2024, Missouri's basic minimum wage rate is $12.30 per hour. Missouri's minimum wage is adjusted annually based on a predetermined formula.
Montana
In 2024, Montana's minimum wage for businesses with gross annual sales exceeding $110,000 is $10.30 per hour. For businesses not covered by the Fair Labor Standards Act with gross annual sales of $110,000 or less, the minimum wage is $4.00 per hour.
A business not covered by the federal Fair Labor Standards Act whose gross annual sales are $110,000 or less may pay $4.00 per hour. However, if an individual employee is involved in interstate commerce or is otherwise covered by the Federal Fair Labor Standards Act, they must be paid the higher of the federal minimum wage or Montana's minimum wage. The minimum wage in Montana is adjusted annually based on a set formula.
Nebraska
In 2024, Nebraska's minimum wage is $12.00 per hour, applicable to employers with four or more employees.
Nevada
In 2024, Nevada's minimum wage is $11.25 per hour if the employer does not offer qualifying health insurance and $10.25 per hour if qualifying health insurance is provided. The state's minimum wage is adjusted annually based on a set formula. However, effective July 1, 2024, there will be a uniform minimum wage of $12.00 per hour for all employees, regardless of health insurance offerings.
New Hampshire
In 2024, New Hampshire's minimum wage is $7.25 per hour. The state minimum wage is set to match the federal minimum wage if it falls below the federal rate.
New Jersey
In 2024, New Jersey's minimum wage is $15.13 per hour, adjusted annually based on a set formula. For seasonal and small employers with fewer than six employees, the minimum wage is $13.73 per hour.
New Mexico
In 2024, New Mexico's minimum wage is set at $12.00 per hour.Additionally, certain cities and counties in New Mexico may set their own local minimum wage rates, which can differ from the statewide standard.
| Locality | 2024 minimum wage per hour |
|---|---|
| Santa Fe | $14.60 |
| Albuquerque | $12.00 |
New York
In 2024, New York's basic minimum wage is $15.00 per hour. Additionally, employees are entitled to an extra hour of pay at the minimum wage rate when their spread of hours exceeds 10 hours, during split shifts, or both. Additionally, certain cities and counties in New York may set their own local minimum wage rates, which can differ from the statewide standard.
| Locality | 2024 minimum wage per hour |
|---|---|
| New York City | $16.00 |
| Nassau County | $16.00 |
| Suffolk County | $16.00 |
| Westchester County | $16.00 |
North Carolina
In 2024, North Carolina's minimum wage is set at $7.25 per hour.
North Dakota
In 2024, North Dakota's minimum wage is $7.25 per hour.
Ohio
In 2024, Ohio's minimum wage varies based on employer size and annual gross receipts. Employers with annual gross receipts of $385,000 or more must pay a minimum wage of $10.45 per hour, while those with annual gross receipts under $385,000 have a minimum wage of $7.25 per hour. Ohio's minimum wage is adjusted annually according to a predetermined formula.
Oklahoma
In 2024, Oklahoma's minimum wage laws dictate that employers with ten or more full-time employees at any one location or with annual gross sales over $100,000 must pay a minimum wage of $7.25 per hour. For all other employers, the minimum wage is $2.00 per hour. Oklahoma's state minimum wage law adopts the federal minimum wage rate by reference, and it excludes from coverage any employment subject to the federal Fair Labor Standards Act.
Oregon
In 2024, Oregon's standard minimum wage rate is $14.20 per hour. The minimum wage in Oregon is adjusted annually on July 1st according to a predetermined formula. Additionally, there are different minimum wage rates in Oregon, with a higher rate in the Portland metro area and a lower rate in non-urban counties.
| Locality | 2024 minimum wage per hour |
|---|---|
| Portland Metro Area | $15.45 |
| Non-Urban counties | $13.20 |
Pennsylvania
As of 2024, the basic minimum rate in Pennsylvania is $7.25 per hour.
Rhode Island
Rhode Island's basic minimum rate for 2024 is $14.00 per hour. Additionally, under separate laws from the minimum wage legislation, certain retail and other businesses are required to provide time and one-half premium pay for work performed on Sundays and holidays.
South Carolina
In South Carolina, there is no state minimum wage law. Employers in the state are required to adhere to the federal minimum wage set by the Fair Labor Standards Act, which is currently $7.25 per hour.
South Dakota
In South Dakota, the basic minimum rate per hour for 2024 is $11.20. It's important to note that the minimum wage in the state is adjusted annually based on a predetermined formula.
Tennessee
In Tennessee, there is no state minimum wage law. Employers in the state must adhere to the federal minimum wage set by the Fair Labor Standards Act, which is currently $7.25 per hour.
Texas
In Texas for the year 2024, the basic minimum rate per hour is $7.25. The state law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act. Additionally, the Texas State minimum wage law does not contain current dollar minimums; instead, the state adopts the federal minimum wage rate by reference.
Utah
In Utah, for the year 2024, the basic minimum rate per hour is $7.25. The state law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act.
Vermont
In Vermont, applicable to employers of two or more employees, the basic minimum rate per hour for 2024 is $13.67. It's important to note that the Vermont minimum wage is automatically replaced with the federal minimum wage rate if it is higher than the state minimum.
Virginia
In Virginia, for the year 2024, the basic minimum rate per hour is $12.00.
Washington
In Washington for 2024, the basic minimum rate per hour is $16.28, adjusted annually based on a set formula. Additionally, cities such as Seattle, SeaTac, and Tukwila have established higher local minimum wages compared to the statewide minimum.
| Locality | 2024 minimum wage per hour |
|---|---|
| Portland Metro Area | $19.97 - For Large Employers (501 or more employees) $17.25 - For Small Employers (500 or fewer employees) |
| Tukwila | $20.29 - Large Employer(More than 500 employees worldwide and certain franchisees) $19.29 - Mid-Size Employer(At least 15 but no more than 500 employees worldwide or over $2 million of annual gross revenue in Tukwila) |
| SeaTac | $19.71 |
West Virginia
In West Virginia, applicable to employers of 6 or more employees at one location, the basic minimum rate per hour for 2024 is $8.75.
Wisconsin
In Wisconsin, for the year 2024, the basic minimum rate per hour remains at $7.25.
Wyoming
In Wyoming, the basic minimum rate per hour for 2024 is $5.15. Employers subject to the Fair Labor Standards Act must pay the current federal minimum wage of $7.25 per hour.
Additional Considerations
In addition to basic minimum wage requirements, employers should be aware of other factors that may affect wage calculations, such as overtime pay, tipped employees, and youth employment laws. Failure to comply with minimum wage laws can result in legal consequences, including fines and penalties.
Stay Informed
Minimum wage laws can change, so it's crucial to stay informed about any updates or amendments to ensure ongoing compliance. Consult reputable sources such as government websites, labor departments, and legal counsel for the most up-to-date information on minimum wage requirements.
Conclusion
By understanding and complying with minimum wage laws, employers can demonstrate their commitment to fair compensation practices and create a positive work environment for their employees.
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This article has been updated from its original publication date of June 6 , 2024.