What is the federal minimum wage?
Under the Fair Labor Standards Act (FLSA), the federal minimum wage for covered nonexemptemployees is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. Where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher minimum wage rate.
Various minimum wage exceptions apply under specific circumstances to workers with disabilities, full-time students, youth under age 20 in their first 90 consecutive calendar days of employment, tipped employees and student-learners.
What will the new mimimum wage be in 2024 by State?
Since each state sets its minimum wage based on several factors, it is wise to look at how each state sets the minimum amount for workers. Five states – Alabama, Louisiana, Mississippi, South Carolina and Tennessee – have no minimum wage law so the federal figure of $7.25 per hour is used. States with higher minimum wages tend to have a higher cost of living–making the higher amount relative to expenses. Here is the latest chart from the Department of Labor on the 2024 listing of minimum wage by state. (Keep in Mind tip income is calculated differently–more on that below)
| Greater than federal MW | Equals federal MW of $7.25 | No state MW or state MW is lower than $7.25. Employers covered by the FLSA must pay the federal MW of $7.25. |
|---|---|---|
| AK $11.73 | CNMI | AL |
| AR $11.00 | GA | |
| AZ $14.35 | IA | LA |
| CA $16.00 | ID | MS |
| CO $14.42 | IN | SC |
| CT $15.69 | KS | TN |
| DC $17.00 | KY | WY |
| DE $13.25 | NC | AS2 |
| FL $12.00 | ND | |
| HI $14.00 | NH | |
| IL $14.00 | OK | |
| MA $15.00 | PA | |
| MD $15.00 | TX | |
| ME $14.15 | UT | |
| MI $10.33 | WI | |
| MN $10.85 or $8.853 | ||
| MO $12.30 | ||
| MT $10.30 or $4.004 | ||
| NE $12.00 | ||
| NJ $15.13 or $13.735 | ||
| NM $12.00 | ||
| NV $11.25 or $10.256 | ||
| NY $16.00 or $15.007 | ||
| OH $10.45 or $7.008 | ||
| OR $15.45 or $14.20 or $13.209 | ||
| PR $9.50 | ||
| RI $14.00 | ||
| SD $11.20 | ||
| VA $12.00 | ||
| VT $13.67 | ||
| WA $16.28 | ||
| WV $8.75 | ||
| VI $10.50 | ||
| GU $9.25 | ||
| 30 States + DC, GU, PR& VI | 13 States + CNMI | 7 States + AS |
What is the minimum wage for workers who receive tips?
An employer may pay a tipped employee not less than $2.13 an hour in direct wages if that amount plus the tips received equal at least the federal minimum wage ($7.25), the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips. If an employee’s tips combined with the employer’s direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference.
Some states have minimum wage laws specific to tipped employees. When an employee is subject to both the federal and state wage laws, the employee is entitled to the provisions of each law which provide the greater benefits.
Minimum Wage for 2024 by State
| Jurisdiction | Basic Combined Cash & Tip Minimum Wage Rate | Maximum Tip Credit Against Minimum Wage | Minimum Cash Wage 1 | Definition of Tipped Employee by Minimum Tips received (monthly unless otherwise specified) |
|---|---|---|---|---|
| FEDERAL: Fair Labor Standards Act (FLSA) | $7.25 | $5.12 | $2.13 | More than $30 |
| State requires employers to pay tipped employees full state minimum wage before tips | ||||
| Alaska | $11.73 | |||
| California: | $16.00 | |||
| Guam | $9.25 | |||
| Minnesota:2 | ||||
| Large employer: annual gross revenue of at least $500,000 | $10.85 | |||
| Small employer: annual gross revenue of less than $500,000 | $8.85 | |||
| Montana: | ||||
| Business with gross annual sales over $110,000 | $10.30 | |||
| Business not covered by the Fair Labor Standards Act with gross annual sales of $110,000 or less | $4.00 | |||
| Nevada 10Employees not offered qualifying health insurance by employer | $11.25 | |||
| Employees offered qualifying health insurance by employer | $10.25 | |||
| Oregon 12The Oregon minimum wage varies by region. | $14.20 | |||
| Washington | $16.28 | |||
| State requires employers to pay tipped employees a minimum cash wage above the minimum cash wage required under the federal Fair Labor Standards Act ($2.13/hour) | ||||
| Arizona | $14.35 | $3.00 | $11.35 | Not specified |
| Arkansas | $11.00 | $8.37 | $2.63 | Not specified |
| Colorado | $14.42 | $3.02 | $11.40 | More than $30 |
| Connecticut 14 | $15.69 | |||
| Hotel, restaurant | $9.31 | $6.38 | Not specified | |
| Bartenders who customarily receive tips | $7.46 | $8.23 | ||
| Delaware | $13.25 | $11.02 | $2.23 | More than $30 |
| District of Columbia15 | $17.00 | $9.00 | $8.00 | Not specified |
| Florida 17 | $12.00 | $3.02 | $8.98 | More than $30 |
| Hawaii* | $14.00 | $1.25 | $12.75 | More than $20 |
| *Hawaii: Tip Credit in Hawaii is permissible if the combined amount the employee receives from the employer and in tips is at least $7.00 more than the applicable minimum wage. | ||||
| Idaho | $7.25 | $3.90 | $3.35 | More than $30 |
| Illinois | $14.00 | 40% of the applicable minimum wage ($5.60) | $8.40 | Not specified |
| Iowa | $7.25 | 40% of the applicable minimum wage ($2.90) | $4.35 | More than $30 |
| Maine | $14.15 | 50% of the applicable minimum wage ($7.07) | $7.08 | More than $175 |
| Maryland | $15.00 | $11.37 | $3.63 | More than $30 |
| Massachusetts | $15.00 | $8.25 | $6.75 | More than $20 |
| Michigan | $10.33 | $6.40 | 38% of the applicable minimum wage ($3.93) | Not specified |
| Missouri | $12.30 | 50% of the applicable minimum wage ($6.15) | $6.15 | Not specified |
| New Hampshire | $7.25 | $3.98 | $3.27 | More than $30 |
| New Jersey 3 | $15.13 | $9.87 | $5.26 | More than $30 |
| New Mexico | $12.00 | $9.00 | $3.00 | More than $30 |
| New York | $15.00 | Tipped workers’ minimum wage rates vary by region and type of employer. See New York’s Minimum Wage: Overview. | Not specified | |
| North Dakota | $7.25 | 33% of the applicable minimum wage ($2.39) | $4.86 | More than $30 |
| Ohio 5 Employers with annual gross receipts of $385,000 or more | $10.45 | $5.20 | $5.25 | More than $30 |
| Oklahoma 6 | $7.25 | $5.12 | $2.13 | Not specified |
| Pennsylvania | $7.25 | $4.42 | $2.83 | $135 per month |
| Rhode Island | $14.00 | $10.11 | $3.89 | More than $30 |
| South Dakota | $11.20 | 50% of the applicable minimum wage ($5.60) | $5.60 | More than $35 |
| Vermont An employee of a hotel, motel, tourist place, or restaurant who customarily and regularly receives more than $120.00 per month in tips for direct and personal customer service. | $13.67 | $6.83 | $6.84 | More than $120 |
| Virgin Islands | $10.50 | $6.30 | 40% of the applicable minimum wage ($4.20) | Not specified |
| Wisconsin 8 | $7.25 | $4.92 | $2.33 | Not specified |
| West Virginia 7 | $8.75 | 70% of the applicable minimum wage ($6.13) | $2.62 | Not specified |
| State minimum cash wage payment is the same as that required under the federal Fair Labor Standards Act ($2.13/hr.) | ||||
| Alabama 9 | $7.25 | $5.12 | $2.13 | More than $30 |
| American Samoa | Special minimum wage rates | $2.13 | More than $30 | |
| Georgia 9 | $7.25 | $5.12 | $2.13 | More than $30 |
| Indiana | $7.25 | $5.12 | $2.13 | More than $30 |
| Kansas 16 | $7.25 | $5.12 | $2.13 | Not specified |
| Kentucky | $7.25 | $5.12 | $2.13 | More than $30 |
| Louisiana 9 | $7.25 | $5.12 | $2.13 | More than $30 |
| Mississippi 9 | $7.25 | $5.12 | $2.13 | More than $30 |
| Nebraska | $12.00 | $9.87 | $2.13 | Not specified |
| North Carolina 4 | $7.25 | $5.12 | $2.13 | More than $20 |
| Commonwealth of the Northern Mariana Islands | $7.25 | $5.12 | $2.13 | More than $30 |
| Puerto Rico 18 | $9.50 | $7.37 | $2.13 | More than $30 |
| South Carolina 9 | $7.25 | $5.12 | $2.13 | More than $30 |
| Tennessee 9 | $7.25 | $5.12 | $2.13 | More than $30 |
| Texas 16 | $7.25 | $5.12 | $2.13 | More than $20 |
| Utah 16 | $7.25 | $5.12 | $2.13 | More than $30 |
| Virginia | $12.00 | $9.87 | $2.13 | More than $30 |
| Wyoming 13 | $7.25 | $5.12 | $2.13 | More than $30 |
Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires. Some local governments set minimum wage rates higher than their respective state minimum wage. Such differential provisions are not displayed in this table.
FOOTNOTES
1 Other additional deductions are permitted, for example for meals and lodging.
2 Minnesota. A large employer means an enterprise whose annual gross revenue is not less than $500,000. A small employer means an enterprise whose annual gross revenue is less than $500,000.
3 New Jersey. An employer is eligible to apply a tip credit against the full state minimum hourly wage only if the tipped employees have been informed in advance of the amount of the cash wage that is to be paid; the amount of the tip credit claimed by the employer; that all tips received must be retained by the employee, except in case of a valid tip pool arrangement limited to tipped employees; and of the requirements of the relevant New Jersey regulations.There is a minimum wage of $13.73 per hour for seasonal and small employers who employ fewer than 6 people.
4 North Carolina. Tip credit is not permitted unless the employer obtains from each employee, either monthly or each pay period, a signed certification of the amount of tips received. Employers must notify employees in advance of the amount of cash wages they will be paid and the amount that wages will be increased using the tip credit.
5 Ohio. For employees of employers with gross annual sales of less than $385,000, the state minimum wage is $7.25 per hour.
6 Oklahoma. For employers with fewer than 10 full-time employees at any one location who have gross annual sales of $100,000 or less, the basic minimum rate is $2.00 per hour. Employers with ten or more full time employees at any one location or annual gross sales over $100,000 that are not covered by the FLSA can take a tip credit of no more than 50 percent ($3.62) of the applicable minimum wage of $7.25. The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act.
7 West Virginia. The state minimum wage law applies only to employers with six or more employees and to state agencies.
8 Wisconsin. $5.90 per hour may be paid to “opportunity employees” — employees who are not yet 20 years old and who have been in employment status with a particular employer for 90 or fewer consecutive calendar days from the date of initial employment. Additionally, a cash wage of $2.13 per hour may be paid to an opportunity employee who is a tipped employee.
9 The following states do not have state minimum wage laws: Alabama, Louisiana, Mississippi, South Carolina, and Tennessee. Georgia has a state minimum wage law, but it does not apply to tipped employees. Employers in these states must pay employees covered by the Federal Fair Labor Standards Act at least the federal minimum wage.
10 Nevada. Effective July 1, 2024, there will be a uniform minimum wage of $12.00 per hour for all employees.
11 US Virgin Islands. The Wage Board has been authorized since 2020 to increase the minimum cash wage for tipped tourist service and restaurant employees to a rate not greater than 45% of the minimum wage or less than the federal minimum wage for tipped employees.
12 Oregon. The standard minimum wage in Oregon is $14.20 per hour. The minimum wage in the Portland metro area is $15.45 per hour and the minimum wage in nonurban counties is $13.20 per hour.
13 Wyoming. The Wyoming minimum wage is $5.15 per hour. Employers must pay employees covered by the federal Fair Labor Standards Act at least the federal minimum wage.
14 Connecticut. The Connecticut minimum wage is adjusted annually based on a set formula.
15 District of Columbia. Pursuant to a ballot initiative, the minimum cash wage for tipped workers in the District of Columbia increased to $8.00 per hour on July 1, 2023 and it is scheduled to gradually increase annually until it reaches the full minimum wage. Additionally, the District of Columbia minimum wage is adjusted annually on July 1 based on a set formula.
16 The minimum wage laws in Kansas, Oklahoma (see note 6), Texas, and Utah exclude from coverage any employment that is subject to the federal Fair Labor Standards Act.
17 Florida. The Florida minimum wage is scheduled to increase by $1.00 every year on September 30th until reaching $15.00 on September 30, 2026.
18 Puerto Rico. The minimum wage will increase to $10.50 per hour on July 1, 2024, unless the Commonwealth issues a decree changing the amount.
Must young workers be paid the minimum wage?
A minimum wage of $4.25 per hour applies to young workers under the age of 20 during their first 90 consecutive calendar days of employment with an employer, as long as their work does not displace other workers. After 90 consecutive days of employment or the employee reaches 20 years of age, whichever comes first, the employee must receive a minimum wage of $7.25 per hour effective July 24, 2009.
Other programs that allow for payment of less than the full federal minimum wage apply to workers with disabilities, full-time students, and student-learners employed pursuant to sub-minimum wage certificates. These programs are not limited to the employment of young workers.
What minimum wage exceptions apply to full-time students?
The Full-time Student Program is for full-time students employed in retail or service stores, agriculture, or colleges and universities. The employer that hires students can obtain a certificate from the Department of Labor which allows the student to be paid not less than 85% of the minimum wage. The certificate also limits the hours that the student may work to 8 hours in a day and no more than 20 hours a week when school is in session and 40 hours when school is out, and requires the employer to follow all child labor laws. Once students graduate or leave school for good, they must be paid $7.25 per hour effective July 24, 2009.
There are some limitations on the use of the full-time student program. For information on the limitations or to obtain a certificate, contact the Department of Labor’s Wage and Hour National Certification Team at 230 South Dearborn Street, Room 514, Chicago, Illinois 60604, telephone: 312-596-7195.
What minimum wage exceptions apply to student learners?
This program is for high school students at least 16 years old who are enrolled in vocational education (shop courses). The employer that hires the student can obtain a certificate from the Department of Labor which allows the student to be paid not less than 75% of the minimum wage, for as long as the student is enrolled in the vocational education program.
Employers interested in applying for a student learner certificate should contact the Department of Labor’s Wage and Hour National Certification Team at 230 South Dearborn Street, Room 514, Chicago, Illinois 60604, telephone: 312-596-7195.
Other programs that allow for payment of less than the full federal minimum wage apply to disabled workers and full-time students employed pursuant to sub-minimum wage certificates.
How often does the federal minimum wage increase?
The minimum wage does not increase automatically. Congress must pass a bill which the President signs into law in order for the minimum wage to go up.
Who makes sure workers are paid the minimum wage?
The Wage and Hour Division of the U.S. Department of Labor is responsible for enforcing the minimum wage. Using both enforcement and public education efforts, the Wage and Hour Division strives to ensure that workers are paid the minimum wage.
The Wage and Hour Division has offices throughout the country. The phone numbers and addresses for these offices may be found on the Internet or in the federal government “blue pages” section of the telephone book under “Labor Department.”
To whom does the minimum wage apply?
The minimum wage law (the FLSA) applies to employees of enterprises that have annual gross volume of sales or business done of at least $500,000. It also applies to employees of smaller firms if the employees are engaged in interstate commerce or in the production of goods for commerce, such as employees who work in transportation or communications or who regularly use the mails or telephones for interstate communications. Other persons, such as guards, janitors, and maintenance employees who perform duties which are closely related and directly essential to such interstate activities are also covered by the FLSA. It also applies to employees of federal, state or local government agencies, hospitals and schools, and it generally applies to domestic workers.
The FLSA contains a number of exemptions from the minimum wage that may apply to some workers.
The Wage and Hour Division has a Handy Reference Guide to the Fair Labor Standards Act that explains how the law applies. Call 1-866-4-USWAGE (1-866-487-9243) for a printed copy of the guide.
What happens if state law requires payment of a higher minimum wage than federal law?
Where state law requires a higher minimum wage, that higher standard applies.
Where to Obtain Additional Information
This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations.