As the cost of living continues to rise in the U.S., many critics argue that the $7.25 per hour federal minimum wage won't cut it. The minimum wage is the bare minimum you can pay employees, and the federal government hasn't changed its minimum wage rate since 2009.
Many states, however, have been increasing their minimum wage over the years to support their citizens. And employers are required to pay whichever minimum wage is highest that applies to their region.
Keeping up with these changes almost every year can be challenging, especially if you have employees in multiple states.
But what, exactly, is the minimum wage in all 50 states? We'll cover all that and more, so let's dive in!
What Is the Minimum Wage in All 50 States?
The minimum wage differs from state to state since the cost of living varies a lot across the country. Most states (and even cities) have their own minimum hourly wage rate, with most being higher than the federal rate.
Here are the minimum wages for every state:
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Who Does Minimum Wage Apply To?
The federal minimum wage applies to non-exempt employees covered under the Fair Labor Standards Act (FLSA). Non-exempt employees typically include your hourly and blue-collar workers making less than $684 per week.
The FLSA also excludes specific categories of employees from the minimum wage laws, including:
- Tipped employees who regularly get more than $30 in monthly tips (more on this later).
- Full-time students working for a retail store, university, or service company. You must pay these students at least 85% of the minimum wage.
- Students in a vocational or technical program. They should receive at least 75% of the minimum wage during their enrollment period.
- Employees under 20 years completing a three-month probationary period. They should earn at least $4.25 per hour until they complete a three-month probationary period. After that, or when they reach age 20 (whichever comes first), you should pay them at least the minimum wage.
- Employees with mental or physical disabilities that can affect production capacity. They include people who have alcohol and drug addiction, cerebral palsy, blindness, developmental disabilities, or mental illness.
Minimum Wage: Federal vs. State vs. City
States and cities also play a significant role in determining the minimum rate for standard workers living there by setting their own minimum wage rates.
But if the federal, state, and city minimum wages differ, can you cherry-pick the rate to apply? Unfortunately, that's not the case. You must always pay the highest minimum wage.
For example, the minimum wage for California's standard workers is $15.50 per hour, which is higher than the federal minimum. That means you should pay your workers at least the state's minimum wage of $15.50 per hour.
However, if your worker is based in San Francisco, which has a minimum wage ($18.07) higher than the Golden State, you must pay that worker $18.07 per hour.
On the other hand, in states like Wyoming ($5.15), where the minimum wage rate is lower than the federal rate, the higher federal rate of $7.25 per hour applies.
Keeping a tab on all these minimum wage rates and their frequent updates can be challenging. Instead, you can use payroll software like Hourly that stays up to date on minimum wage requirements and lets you pay your employees with a single click.
Which States Are Raising Their Minimum Wages in 2023?
According to the Economic Policy Institute (EPI), 22 states and Washington, D.C., raised their minimum wage on Jan. 1, 2023. Connecticut, Oregon, Nevada, and Florida will follow suit later in the year.
The states that raised their minimum wages on Jan. 1, 2023, include:
- Alaska
- Arizona
- California
- Colorado
- Delaware
- Illinois
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Missouri
- Montana
- Nebraska
- New Jersey
- New Mexico
- Ohio
- Rhode Island
- South Dakota
- Vermont
- Virginia
- Washington
Connecticut's minimum wage was increased to $15.00 per hour on June 1, 2023, while Florida will raise its rate to $12.00 per hour on Sept. 30, 2023. Oregon raised its standard minimum wage to $14.20 an hour on July 1, 2023, making the non-urban minimum wage $13.20 and the Portland metro area's minimum wage $15.45.
Meanwhile, Nevada workers now enjoy minimum wages of $11.25 for employees without qualifying health insurance and $10.25 for workers with qualifying health insurance starting as of July 1.
Which States Have a $15 per Hour Minimum Wage?
California, Connecticut, Massachusetts, and Washington are the states with a minimum wage of $15 per hour or above.
While not a state, Washington, D.C. also falls into this category with its minimum wage of $17 per hour.
Which States Will See Their Minimum Wage Increase to $15 per Hour in 2023 and Beyond?
Thirteen states will see their minimum wages increase to $15 per hour and above in 2023 and beyond.
The table below highlights these states:
