Federal Minimum Wage
The current federal minimum wage stands at $7.25 per hour, a rate that has remained unchanged since 2009. This federal standard serves as the absolute minimum for most employees covered by the Fair Labor Standards Act (FLSA). However, many states and even some cities have chosen to set higher minimum wages to reflect local living costs and economic conditions better.
State-by-State Minimum Wage Overview
As of 2024, the minimum wage varies significantly from state to state:
- Highest Minimum Wages:
- Washington state leads with $16.28 per hour
- California follows closely at $16.00 per hour
- Massachusetts and Connecticut have reached $15.00 and $15.69 per hour, respectively
- Lowest Minimum Wages:
- Several states, including Alabama, Georgia, and Wyoming, still adhere to the federal minimum of $7.25
- Some states, like Georgia and Wyoming, technically have lower state minimums ($5.15), but the federal rate applies to most workers
- Notable Changes in 2024:
- 25 states plus Washington D.C. have implemented minimum wage increases
- Hawaii raised its minimum wage from $12.00 to $14.00
- Florida is set to increase from $12.00 to $13.00 on September 30, 2024
What is the minimum wage in each state for 2024?
Stay ahead of any compliance surprises by checking the latest updates. We’ve compiled a list of the 2024 and 2023 state minimum wages to help you stay informed. Note that this list does not include city or municipal-specific wage requirements.
|
State |
2024 Minimum Hourly Wage |
2023 Minimum Hourly Wage |
| Alabama | $7.25 | $7.25 |
| Alaska | $11.73 | $10.85 |
| Arizona | $14.35 | $13.85 |
| Arkansas | $11.00 | $11.00 |
| California | $16.00 | $15.50 |
| Colorado | $14.42 | $13.65 |
| Connecticut | $15.69 | $15.00 |
| Delaware | $13.25 | $11.75 |
| Florida | $13.00 (effective Sept. 30, 2024) | $12.00 |
| Georgia | $7.25 | $7.25 |
| Hawaii | $14.00 | $12.00 |
| Idaho | $7.25 | $7.25 |
| Illinois | $14.00 | $13.00 |
| Indiana | $7.25 | $7.25 |
| Iowa | $7.25 | $7.25 |
| Kansas | $7.25 | $7.25 |
| Kentucky | $7.25 | $7.25 |
| Louisiana | $7.25 | $7.25 |
| Maine | $14.15 | $13.80 |
| Maryland | $15.00 | $13.25 for employers with 15 or more workers; $12.80 for smaller businesses. |
| Massachusetts | $15.00 | $15.00 |
| Michigan | $10.33 | $10.10 |
| Minnesota | $8.85 for small employers and $10.85 for large employers.* | $8.63 for small employers and $10.59 for large employers. |
| Mississippi | $7.25 | $7.25 |
| Missouri | $12.30 | $12.00 |
| Montana | $10.30 | $9.95 |
| Nebraska | $12.00 | $10.50 |
| Nevada | $12.00 (effective July 1, 2024) | $10.25 for employers offering qualifying health benefits; $11.25 for all others. |
| New Hampshire | $7.25 | $7.25 |
| New Jersey | $15.13 for most employers; $13.73 for seasonal and small employers who have less than six workers. | $14.13 for most employers; $12.93 for seasonal and small employers who have less than six workers. |
| New Mexico | $12.00 | $12.00 |
| New York | $16.00 for New York City, Long Island and Westchester; $15.00 for the rest of the state. | $15.00 for New York City, Long Island and Westchester; $14.20 for the rest of the state. |
| North Carolina | $7.25 | $7.25 |
| North Dakota | $7.25 | $7.25 |
| Ohio | $10.45 | $10.10 |
| Oklahoma | $7.25 | $7.25 |
| Oregon | $1.25 over the standard minimum wage for employers in the Portland metro; $1 less than the standard minimum wage for non-urban counties. ** (Effective July 1, 2024) | $15.45 for employers in the Portland metro; $13.20 for non-urban counties; and $14.20 for all others. |
| Pennsylvania | $7.25 | $7.25 |
| Rhode Island | $14.00 | $13.00 |
| South Carolina | $7.25 | $7.25 |
| South Dakota | $11.20 | $10.80 |
| Tennessee | $7.25 | $7.25 |
| Texas | $7.25 | $7.25 |
| Utah | $7.25 | $7.25 |
| Vermont | $13.67 | $13.18 |
| Virginia | $12.00 | $12.00 |
| Washington, D.C. | $17.00 until July 1, 2024 (the new rate is not yet determined) | $17.00 |
| Washington | $16.28 | $15.74 |
| West Virginia | $8.75 | $8.75 |
| Wisconsin | $7.25 | $7.25 |
| Wyoming | $7.25 | $7.25 |
Trends and Future Projections
- Path to $15: Several states are on track to reach a $15 minimum wage in the coming years:
- Delaware and Illinois by 2025
- Florida by 2026
- Rhode Island by 2025
- Inflation Adjustments: Many states now tie their minimum wage to inflation, ensuring regular increases. Examples include:
- Arizona
- Colorado
- Maine
- Minnesota
- Regional Variations: Some states have different minimum wages based on region or employer size:
- New York: $16.00 in New York City, Long Island, and Westchester; $15.00 elsewhere
- Minnesota: $10.85 for large employers, $8.85 for small employers
Special Considerations
- Tipped Employees: Many states allow lower base wages for tipped workers, with the expectation that tips will bring their earnings up to or above the standard minimum wage.
- Youth and Training Wages: Some states permit lower wages for young workers or during initial training periods.
- Local Ordinances: Cities like Seattle and San Francisco have implemented their own, higher minimum wages.
Impact on Businesses and Workers
The ongoing increases in minimum wage across many states have significant implications:
- For Businesses:
- Increased labor costs, potentially leading to price adjustments or operational changes
- Need for regular policy updates and payroll system modifications
- For Workers:
- Improved standard of living in many areas
- Potential for reduced hours or job availability in some sectors
Compliance and Best Practices
To navigate the complex minimum wage landscape, businesses should:
- Stay informed about both state and local wage laws
- Regularly update payroll systems and employee handbooks
- Consider the impact on overall compensation structures
- Communicate changes clearly to all employees
Conclusion
The minimum wage in the United States continues to be a dynamic and often contentious issue. While the federal rate remains stagnant, many states are taking the initiative to increase their minimum wages, reflecting changing economic realities and public sentiment. As we move through 2024 and beyond, it’s crucial for both employers and employees to stay informed about these evolving standards and their potential impacts.
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