Minimum Wage
In one sentence
The lowest hourly wage an employer is legally required to pay employees.
Plain English
Minimum wage is the lowest hourly rate that employers must pay workers by law. The federal minimum wage in the United States is currently $7.25 per hour, but many states and cities have set their own higher minimums. Employers cannot pay workers less than the applicable minimum wage, even if the worker agrees to it. The minimum wage applies to most employees, though some categories (like certain trainees or workers with disabilities) may have exceptions. Violations can result in lawsuits, penalties, and back-pay owed to employees.
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Example
A state raises its minimum wage to $15 per hour. A restaurant owner who was paying dishwashers $12 per hour must increase their pay to at least $15 per hour or face fines and potential lawsuits from the workers.
Used in a sentence
“The employer violated minimum wage laws by paying workers $6 per hour instead of the required $7.25.”
How Minimum Wage differs by state
Minimum Wage can apply differently depending on the state. Click a state to see local specifics.
Alabama
Alabama follows the federal minimum wage of $7.25 per hour with no state-specific increase.
Alaska
Alaska's minimum wage is $11.73 per hour as of 2024, adjusted annually for inflation.
Arizona
Arizona's minimum wage is $15.45 per hour as of 2024, with annual inflation adjustments.
Arkansas
Arkansas follows the federal minimum wage of $7.25 per hour with no state increase.
California
California's minimum wage is $16.50 per hour statewide as of 2024, with scheduled increases ahead.
Colorado
Colorado's minimum wage adjusts annually for inflation and currently exceeds the federal rate significantly.
Connecticut
Connecticut's minimum wage increases annually and is among the highest in the nation, with special rules for certain workers.
Delaware
Delaware's minimum wage matches the federal rate but automatically increases if the federal minimum rises.
Florida
Florida's minimum wage increases annually by constitutional amendment and is tied to inflation adjustments.
Georgia
Georgia follows the federal minimum wage of $7.25 per hour with no state-specific increase.
Hawaii
Hawaii's minimum wage is $14.00 per hour as of 2024, with scheduled annual increases tied to inflation.
Idaho
Idaho follows the federal minimum wage of $7.25 per hour with no state-level increase.
Illinois
Illinois minimum wage is $14.00 per hour as of 2024, with annual increases scheduled through 2026.
Indiana
Indiana follows the federal minimum wage of $7.25 per hour with no state-level increase.
Iowa
Iowa's minimum wage is $11.00 per hour as of 2024, adjusted annually for inflation.
Kansas
Kansas follows the federal minimum wage of $7.25 per hour with no state-level increase.
Kentucky
Kentucky applies the federal minimum wage of $7.25 per hour without a higher state requirement.
Louisiana
Louisiana enforces the federal minimum wage of $7.25 per hour with no state-mandated increase.
Maine
Maine's minimum wage is $14.15 per hour as of 2024, indexed annually for inflation.
Maryland
Maryland's minimum wage is $15.00 per hour statewide, with scheduled increases through 2026.
Massachusetts
Massachusetts requires employers to pay at least $15.00 per hour as of 2024, with annual increases scheduled through 2028.
Michigan
Michigan's minimum wage is $10.33 per hour as of 2024, with automatic annual adjustments tied to inflation.
Minnesota
Minnesota enforces a $12.85 minimum wage for large employers and $11.85 for small employers as of 2024, adjusted annually.
Mississippi
Mississippi applies the federal minimum wage of $7.25 per hour with no state-specific increase.
Missouri
Missouri's minimum wage is $12.30 per hour as of 2024, with annual increases tied to inflation.
Montana
Montana's minimum wage adjusts annually for inflation, currently exceeding the federal rate.
Nebraska
Nebraska follows the federal minimum wage of $7.25 per hour with no state-specific increase.
Nevada
Nevada requires a two-tiered minimum wage based on whether employers provide health insurance benefits.
New Hampshire
New Hampshire follows the federal minimum wage of $7.25 per hour without a state increase.
New Jersey
New Jersey's minimum wage increases annually and currently exceeds most other states' rates.
New Mexico
New Mexico's minimum wage increases annually on January 1 based on inflation adjustments.
New York
New York's minimum wage varies by region and increases annually, with New York City having the highest rate.
North Carolina
North Carolina follows the federal minimum wage with no state-specific increase.
North Dakota
North Dakota's minimum wage matches the federal rate with no independent state increase.
Ohio
Ohio's minimum wage increases annually on January 1 and exceeds the federal minimum.
Oklahoma
Oklahoma follows the federal minimum wage of $7.25 per hour with no state-specific increase.
Oregon
Oregon sets its own minimum wage, which adjusts annually for inflation and exceeds the federal minimum.
Pennsylvania
Pennsylvania follows the federal minimum wage of $7.25 per hour and has not established a higher state minimum.
Rhode Island
Rhode Island sets its own minimum wage above the federal level and adjusts it annually.
South Carolina
South Carolina follows the federal minimum wage of $7.25 per hour with no state-level increase.
South Dakota
South Dakota follows the federal minimum wage of $7.25 per hour with no state-specific increase.
Tennessee
Tennessee enforces the federal minimum wage of $7.25 per hour and does not set a higher state minimum.
Texas
Texas adheres to the federal minimum wage of $7.25 per hour with no state-mandated increase.
Utah
Utah's minimum wage is $7.25 per hour, matching the federal standard with no state increase.
Vermont
Vermont's minimum wage is $7.25 per hour, but the state has historically indexed increases to inflation.
Virginia
Virginia follows the federal minimum wage of $7.25 per hour with no state-specific increase.
Washington
Washington has one of the nation's highest minimum wages, adjusted annually for inflation.
West Virginia
West Virginia follows the federal minimum wage of $7.25 per hour with no state increase.
Wisconsin
Wisconsin follows the federal minimum wage of $7.25 per hour with no state-specific increase.
Wyoming
Wyoming follows the federal minimum wage of $7.25 per hour with no state increase.
District of Columbia
DC's minimum wage rises annually on July 1, currently $17.27/hour, with scheduled increases through 2026.
Related terms
Overtime Pay
Compensation at an increased rate for hours worked beyond the standard workweek, typically 1.5 times the regular wage.
Breach of Contract
Failure to do what a contract requires, without a valid legal excuse.
Damages
Money awarded by a court to compensate a party for losses caused by a breach or wrongdoing.
Right to Work
A legal principle that employees cannot be forced to join a union or pay union fees as a job condition.
At-Will Employment
An employment relationship where either party can end the job at any time without cause or notice.
Wrongful Termination
Illegal firing of an employee in violation of law, contract, or public policy.
Non-Compete Agreement
A contract clause restricting an employee from working for competitors or starting a competing business after leaving.
Workers Compensation
Insurance that provides medical benefits and wage replacement to employees injured during work.
This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.