Minimum Wage: Minimum Wage by State for 2024
Minimum wage discussions are at the forefront of economic policy debates in the United States, impacting millions of workers and businesses across the country. For business owners, understanding the nuances of minimum wage regulations is crucial for compliance, strategic planning, and operational efficiency.
This blog post aims to decode the complexities of minimum wage regulations by state for 2024. It offers a clear, state-by-state guide that empowers employers—particularly those in the restaurant industry—to navigate these changes confidently.
What is the Federal Minimum Wage?
The Federal Minimum Wage is set at $7.25 per hour for most employees, as mandated by the Fair Labor Standards Act (FLSA) since July 24, 2009. If you are a business owner, restaurant owner, or employer, it's crucial to understand that this rate is the baseline you are required to pay your covered nonexempt workers.
For workers who earn tips, such as restaurant service staff, the base pay is $2.13 per hour. However, their tips combined with this wage must equal at least $7.25 per hour. If the total doesn't meet this threshold, you, as the employer, are obligated to compensate for the shortfall.
It's important to note that some employees may fall under different rules due to exceptions in the FLSA. These exceptions include individuals with disabilities, full-time students, young workers under 20 during their initial 90 days of employment, tipped employees, and student-learners.
Moreover, be aware that state laws can institute higher minimum wages. In cases where an employee is subject to both state and federal laws, they are entitled to the higher of the two wages.
What Legislation Established the Federal Minimum Wage?
The Federal Minimum Wage was established by the Fair Labor Standards Act (FLSA) in 1938, under the administration of President Franklin D. Roosevelt. It was a groundbreaking move that set the minimum hourly wage at 25 cents. Beyond this, the FLSA was pivotal in setting standards not just for wages but also for overtime pay and the employment of minors, ushering in new protections for workers across the private and public sectors.
How Often Does the Federal Minimum Wage Rise?
The frequency at which the federal minimum wage rises is not set on a predetermined schedule. Instead, it is dependent on legislative action. The federal minimum wage, which currently stands at $7.25 per hour, has remained unchanged since 2009. This marks nearly 15 years without any adjustments.
To bring about an increase, Congress must pass a new law, and the President must sign it into effect. This legislative process is the only mechanism by which the federal minimum wage can be raised.
Currently, there is a proposal called the Raise the Wage Act of 2023 that, if passed, would gradually raise the federal minimum wage to $17 per hour by 2028. However, until such legislation is passed, the rate remains unchanged.
What is the Minimum Wage in Each State?
While the FLSA sets the baseline, individual states have the authority to implement minimum wage laws that can exceed the federal minimum. Each state may have different minimum wage rates, which do not account for specific cities or municipalities that have established their wage requirements.
For businesses operating in multiple states, staying informed about the specific hourly minimum wage rates applicable in each state is crucial, ensuring compliance with all relevant wage standards.
Here are the minimum wage rates for each state in the USA as of today:
Alabama does not have an active minimum wage law, so it abides by the federal minimum wage by default, which is $7.25 per hour, as mandated by the Fair Labor Standards Act. This is the same for several other states, including Louisiana, Mississippi, South Carolina, and Tennessee.
Alaska's minimum wage is set at $10.85 per hour. Employers must pay one and one-half times the regular rate for hours worked beyond 8 per day or 40 per week.
A flexible work hour plan allowing for 10-hour days without daily overtime is available with state approval. Businesses with fewer than four employees are exempt from these overtime rules.
Note that the minimum wage may change annually based on a prescribed formula.
Arizona's minimum wage laws establish that employers must pay their workers a minimum hourly rate of $13.85.
Arkansas's minimum wage laws mandate that employers with at least four employees pay a basic minimum rate of $11.00 per hour. Employees who work more than 40 hours a week are entitled to overtime pay. This overtime rate is one and one-half times their regular hourly wage.
California's minimum wage stands at $15.50 per hour, with a planned increase to $16.00 on January 1, 2024.
Overtime pay is mandatory when an employee works beyond eight hours in a single day or 40 hours in a week, and on the seventh consecutive day of work. The initial eight hours on this seventh day warrants pay at one and one-half times the usual rate.
Should work exceed 12 hours in any day or eight hours on the seventh day, the pay rate doubles. These regulations are stipulated under California Labor Code section 510, which also lists specific exceptions, such as alternative workweek schedules and excludes commute time.
The minimum wage is subject to annual adjustments based on a predefined formula.
Colorado's minimum wage laws are set to increase from the current rate of $13.65 to $14.42 per hour starting January 1st, 2024. Employees in the state who work beyond designated hours are entitled to premium pay.
Specifically, any work done beyond 12 hours in a day or 40 hours in a week will attract overtime compensation. This applies across several industries, including retail and service, commercial support service, food and beverage, and the health and medical sectors. When overtime is due, the rate is calculated at one and a half times the employee's regular pay rate, ensuring that workers receive fair compensation for extended hours.
The Connecticut minimum wage laws stipulate that as of January 1st, 2024, the basic minimum wage rate will rise to $15.69 per hour, up from the previous $15.00 rate established on June 1, 2023. Employees working over 40 hours weekly are entitled to overtime pay at one and one-half times their regular pay. Specifically for restaurant and hotel restaurant workers, there is a mandate for premium pay at one and one-half times the minimum wage for the seventh consecutive day of work. Additionally, should the federal minimum wage reach or surpass Connecticut's minimum wage, the state's minimum wage will automatically adjust to be 0.5 percent higher than the federal rate as defined by the Fair Labor Standards Act.
Delaware's minimum wage laws stipulate that the basic hourly rate will rise from $11.75 to $13.25 starting January 1st, 2024. Should the federal minimum wage exceed the state-mandated rate, Delaware will adjust accordingly to align with the federal level.
Florida's minimum wage laws mandate that employees receive a basic hourly rate of $12.00. This rate is subject to annual adjustments determined by a predefined formula.
Consistent increases are planned, with the minimum wage rising by $1.00 each September 30th. This incremental progression will culminate in a $15.00 hourly wage by September 30, 2026.
Georgia's Minimum Wage Laws mandate a basic hourly rate of $5.15 for businesses with six or more employees. However, suppose an employer falls under the Federal Fair Labor Standards Act (FLSA), and the federal minimum wage exceeds Georgia's rate. In that case, the employer must pay the higher federal wage, which currently stands at $7.25 per hour. This provision ensures that employees covered by the FLSA receive no less than the federally established minimum.
Hawaii's minimum wage laws are set to see an increase from the current $12.00 per hour to $14.00 per hour starting January 1, 2024. Overtime pay applies after 40 work hours per week at one and one-half times the regular pay.
However, employees with a guaranteed monthly compensation of $2,000 or more are not entitled to this state-mandated minimum wage and overtime. On the other hand, domestic service workers do fall under the state's minimum wage and overtime laws as established by Act 248 in the 2013 Regular Session.
It's important to note that any employment governed by the federal Fair Labor Standards Act is exempt from the state's provisions unless the state's minimum wage exceeds the federal minimum.
Idaho's minimum wage laws dictate that employees earn at least $7.25 per hour, aligning with the federal minimum wage standard. This rate applies to non-exempt workers and is expected to remain unchanged until any revisions are made to the federal rate.
Illinois minimum wage laws mandate that employers with four or more employees, not counting family members, must pay a minimum hourly wage. As of January 1, 2024, this rate will increase from $13.00 to $14.00. Employees working over 40 hours weekly are entitled to overtime pay at one and one-half times their regular hourly rate.
Indiana's minimum wage laws set the standard hourly rate at $7.25, applicable to businesses with at least two employees. Workers earn this base pay for the first 40 work hours each week. Beyond these designated hours, employees are entitled to overtime pay. This overtime compensation is calculated at one and one-half times their regular hourly rate unless specified differently by an agreement or policy.
Iowa's minimum wage laws stipulate that employees are entitled to earn no less than $7.25 per hour, aligning with the federal minimum wage standard. In scenarios where federal rates exceed the state-established minimum, the higher federal wage prevails.
Kansas aligns its minimum wage to the federal baseline of $7.25 per hour. This standard applies to employees not covered by the federal Fair Labor Standards Act, ensuring that all workers receive at least this hourly rate. The state's policy specifies that any job under federal jurisdiction for minimum wage is not overseen by Kansas state minimum wage laws, thus deferring to federal guidelines for those positions.
In Kentucky, the minimum wage is set at $7.25 per hour, aligning with the federal minimum wage. Employees who exceed 40 hours of work in a week are entitled to premium pay. Specifically, Kentucky mandates that any employee who works seven consecutive days within a single workweek must receive time and a half for any hours worked on the seventh day, provided they worked every day of that week. This requirement is distinct from the minimum wage and does not apply if the employee's workweek does not exceed 40 hours.
Additionally, Kentucky law follows the federal standard for minimum wage, meaning if the federal minimum wage were to increase above the state rate, the higher wage would be adopted.
For certain public employees, such as those working for various county governments or for county-elected officials, compensatory time off in place of overtime pay is permissible if they make a written request for it.
The rate for overtime pay is typically 1.5 times the regular pay rate, unless a different arrangement is specified.
Louisiana doesn't have its own state minimum wage legislation. Therefore, employers operating in Louisiana must adhere to the Fair Labor Standards Act and are required to pay their employees at least the federal minimum wage of $7.25 per hour. This mandate ensures that all workers receive a consistent base rate of pay across the state.
Maine's minimum wage laws set the standard hourly rate at $13.80. Overtime pay, at a rate of one and one-half times the regular hourly wage, applies to hours worked beyond the standard 40-hour workweek.
The state ensures its minimum wage remains competitive by stipulating that if the federal minimum wage surpasses the state's rate, Maine's minimum wage will adjust accordingly to match the federal level, effective simultaneously with the federal increase. Additionally, Maine revises its minimum wage annually, adhering to a predetermined formula to maintain its relevance and effectiveness in the economy.
Maryland's minimum wage laws establish a tiered wage system based on employer size. Currently, if an employer has 15 or more employees, the law mandates a minimum wage of $13.25 per hour. For employers with fewer than 15 workers, the minimum rate is slightly lower at $12.80 per hour. Additionally, employees are entitled to premium pay for overtime, which is any time worked beyond 40 hours a week. This overtime pay is calculated at one and one-half times the employee's standard rate of pay.
Looking ahead, a significant change is on the horizon. Starting January 1, 2024, Maryland will unify the minimum wage rate across all employers to $15.00 per hour, eliminating the distinction based on the number of employees.
For young workers under 18 years old, there is an allowance to pay them at a reduced rate, specifically 85% of the applicable minimum wage. This adjustment aims to make it more feasible for businesses to hire younger, less experienced workers while providing those workers with valuable job experience.
Massachusetts enforces a minimum wage of $15.00 per hour for workers, ensuring a wage that is at least $0.50 above the federal minimum wage. When employees in Massachusetts work over 40 hours in a week, they receive premium pay. This overtime pay is calculated at one and one-half times their regular hourly rate, providing additional compensation for hours worked beyond the standard full-time schedule.
Michigan's minimum wage laws establish a baseline hourly rate of $10.10, relevant to businesses with a staff count of at least two. The law mandates that any workweek extending beyond 40 hours is subject to premium pay, with the overtime rate being one and a half times the regular pay. However, this state mandate does not apply to jobs governed by the federal Fair Labor Standards Act, unless Michigan's minimum wage is superior to the federal level.
Furthermore, the state has a progressive plan to raise the minimum wage each year up until 2030, with the condition that the preceding year's unemployment rate remains below 8.5%. For younger employees, specifically those aged between 16 and 17, there is a permissible wage set at 85% of the standard minimum wage. This framework ensures that wage standards adapt to the economic climate while considering the federal guidelines and employment demographics.
Minnesota’s minimum wage laws mandate distinct hourly rates for large and small employers. A large employer, defined by annual revenues of $500,000 or more, must pay a minimum wage of $10.59 per hour. This rate is set to increase to $10.85 starting January 1st, 2024. For overtime, which is any hours worked beyond 48 in a week, employees are entitled to a premium pay of one and one-half times their regular rate.
Small employers, whose annual revenues fall below $500,000, are required to pay a lower minimum wage of $8.63 per hour. The same overtime rules apply to them as well.
The state adjusts the minimum wage annually, following a specific formula to ensure wage rates keep pace with economic changes. Furthermore, employers can pay workers under 18 years of age a minimum of $8.63 per hour, aligning with the rate for small businesses. These provisions aim to balance fair labor compensation with the operational realities of different-sized enterprises.
Mississippi does not set its own minimum wage; hence, there's no state-mandated minimum wage law. Employers operating in Mississippi who are covered by the Fair Labor Standards Act must comply with the federal minimum wage requirement, which is $7.25 per hour. This ensures workers receive the federally mandated baseline pay.
Missouri's Minimum Wage Laws mandate a standard minimum wage of $12.00 per hour. Workers are entitled to overtime, set at one and one-half times their regular pay rate, after completing 40 hours of work in a week. Certain businesses, specifically those in the retail or service sectors with annual gross sales under $500,000, are exempt from these requirements.
Seasonal amusement or recreational businesses must pay the overtime rate after employees work 52 hours in a week. Missouri adjusts its minimum wage annually, following a specific formula to determine any changes. This ensures the wage rate keeps pace with economic variables.
Montana's minimum wage laws establish distinct rates depending on the scale of a business's gross annual sales. For businesses surpassing $110,000 in gross sales, the state mandates a minimum hourly wage of $9.95. This rate applies to the majority of employees, and when these workers exceed 40 hours in a workweek, they are entitled to receive premium pay, which calculates to one and one-half times their regular hourly rate.
On the other hand, smaller businesses that earn $110,000 or less annually are not bound by the federal Fair Labor Standards Act (FLSA) and can pay a minimum wage of $4.00 per hour. However, there's an exception: if an employee is engaged in interstate commerce or other activities under the FLSA's jurisdiction, they must be paid the higher of the federal minimum wage or Montana's standard minimum wage.
Furthermore, the state's minimum wage is subject to annual adjustments based on a pre-determined formula to ensure wages keep pace with economic changes.
Looking ahead, a new increase is set to take effect on January 1, 2024, when the minimum wage in Montana will rise to $10.30 per hour.
Nebraska's minimum wage laws stipulate that any employer with four or more employees must pay a basic minimum rate of $10.50 per hour. This rate is set to rise to $12.00 per hour starting January 1st, 2024. These provisions ensure that workers in Nebraska receive fair compensation for their labor, reflecting the state's commitment to maintaining a living wage for its workforce.
In Nevada, the minimum wage operates on a two-tier system that hinges on whether an employer provides qualifying health insurance. As of July 1, 2023, employees not receiving health benefits from their employer must be paid at least $11.25 per hour. Conversely, employees who are offered health insurance must receive a minimum wage of $10.25 per hour. The state adjusts these rates annually following a specific formula.
Looking ahead, Nevada is set to simplify this system: starting July 1, 2024, all employees will earn a uniform minimum wage of $12.00 per hour, regardless of health insurance benefits.
In New Hampshire, the minimum wage law aligns with the federal baseline rate of $7.25 per hour. Employers are required to pay employees overtime at a rate of one and one-half times their regular pay for hours worked beyond 40 in a week.
This overtime regulation ensures workers are fairly compensated for extended work hours. The state's adherence to the federal minimum wage means that if the state minimum is adjusted below the federal level, the federal rate prevails as the standard for minimum compensation.
New Jersey, a vibrant state in the U.S., enforces a progressive minimum wage policy. Workers benefit from a basic hourly rate of $14.13, with the promise of a rise to $15.13 starting January 1st, 2024.
The wage structure is designed to reward time beyond the standard 40-hour workweek, offering one and a half times the regular rate for overtime. This approach ensures that employees are fairly compensated for extended hours.
Additionally, smaller businesses with a workforce of less than six, including seasonal companies, currently adhere to a slightly lower wage threshold of $12.93 per hour. The state's commitment to adjusting the minimum wage annually according to a specific formula reflects its dedication to maintaining fair labor standards and adapting to economic changes.
The minimum wage laws in New Mexico stipulate a base rate of $12.00 per hour for employees. Overtime, which kicks in after 40 hours of work in a week, is paid at a rate of one and one-half times the standard pay rate of an individual. This overtime rate applies unless an alternative arrangement is specified.
New York State enforces distinct minimum wage laws that require employers to compensate employees at the basic rate of $14.20 per hour, with an increased rate of $15.00 per hour for those in New York City, Long Island, and Westchester. Workers should expect overtime pay after 40 hours of service within a week. Notably, this overtime regulation also extends to residential workers who previously had a 44-hour threshold before qualifying for overtime. The state aligns its minimum wage with the federal level if it's set lower.
Specific employers, including those running factories, hotels, and various other establishments, must provide a mandatory day of rest every week, spanning 24 consecutive hours. Domestic workers also receive this rest period and are eligible for premium pay if they work during it.
Moreover, employees are entitled to additional compensation if their workday extends beyond 10 hours, or if they experience a split shift. The extra pay is equivalent to one hour at the minimum wage rate on top of their regular earnings. Overtime pay is typically calculated at 1.5 times the regular pay rate.
Looking ahead, the minimum wage is set to increase on January 1, 2024, to $16.00 per hour in NYC, Nassau, Suffolk, and Westchester, and to $15.00 per hour elsewhere in the state. Subsequent annual increments of $0.50 are scheduled for January 1, 2025, and January 1, 2026, as part of recent legislative updates to the Labor Law.
In North Carolina, the minimum wage stands at $7.25 per hour, aligning with the federal standard. Employees working beyond 40 hours weekly are entitled to overtime pay, calculated at one and one-half times their regular pay rate. However, for workers in seasonal amusement or recreational businesses, this overtime rate kicks in after 45 hours per week, rather than the standard 40.
North Dakota aligns with the federal minimum wage standard, setting the hourly base pay at $7.25. Employees working over 40 hours weekly are entitled to overtime, calculated at 1.5 times their standard pay rate. This overtime provision ensures workers are fairly compensated for extended work hours beyond the normal full-time schedule.
Ohio's minimum wage laws mandate that employers who earn $372,000 or more in annual gross receipts must pay a basic hourly rate of at least $10.10. Additionally, after 40 hours of work in a single week, these employees are entitled to premium pay at a rate of one and one-half times their regular pay rate.
Conversely, for employers with annual gross receipts below $372,000, the state minimum wage is set at the federal level of $7.25 per hour, with the same premium pay rate applicable after 40 hours of work per week.
These wage rates are not static. Ohio adjusts its minimum wage annually through a predetermined formula. This is to ensure that wages keep pace with the cost of living. Looking ahead, the minimum wage for employees of larger businesses is set to increase to $10.45 per hour starting January 1st, 2024.
Oklahoma's minimum wage laws stipulate that employers who have ten or more full-time employees at a single location, or who have annual gross sales exceeding $100,000, must pay a basic minimum wage of $7.25 per hour. This rate aligns with the federal minimum wage. Employers who do not meet these criteria are required to pay a basic minimum wage of $2.00 per hour.
It is important to note that Oklahoma’s minimum wage legislation adopts the federal minimum wage rate by reference, which means it does not specify a state-determined dollar amount. Additionally, the state law does not apply to jobs that fall under the federal Fair Labor Standards Act. This ensures that the state minimum wage does not conflict with federal wage standards.
Oregon's minimum wage laws establish a tiered rate system, where the basic hourly minimum wage is set at $14.20 statewide. However, within the Portland Metro Area, the rate is higher at $15.45, and in Non-Urban counties, it is lower at $13.20. Workers are entitled to premium pay at one and one-half times their regular rate after 40 hours of work per week. Additionally, specific industries such as nonfarm canneries, driers, packing plants, and manufacturing establishments (with some exclusions) must pay premium rates after 10 hours worked in a day.
The state adjusts its minimum wage annually every July 1st, following a predetermined formula that considers the Consumer Price Index for All Urban Consumers in the U.S. City Average. By April 30th each year, the Bureau calculates the adjustment based on the index's change from the previous March. Any adjustments are rounded to the nearest five cents and come into effect on July 1st. This ensures that the minimum wage keeps pace with the cost of living. In the Portland metro area, the minimum wage is set at $1.25 above the standard rate, while in non-urban counties, it's $1 less.
Pennsylvania's minimum wage laws stipulate that employees must be paid at least $7.25 per hour. When employees work beyond 40 hours in a week, they are entitled to receive overtime compensation. This overtime pay is calculated at a rate of one and one-half times their regular hourly wage. This requirement ensures fair compensation for extended work hours, adhering to the standards set for additional labor beyond the standard workweek.
The minimum wage laws in Puerto Rico mandate that most employees receive at least $9.50 per hour as of July 1, 2023. This rate applies to those under the federal Fair Labor Standards Act (FLSA), with the exclusion of agricultural workers, municipal employees, and those working directly for the Commonwealth.
After 8 hours of work in a day or 40 hours in a week, and on statutory rest days, employees earn premium pay at a rate of one and a half times their standard wage. Workers with superior benefits or rights secured before January 26, 2017, will retain these advantages.
For employers subject to the FLSA but not the Puerto Rico Minimum Wage Act, the federal minimum wage of $7.25 per hour is the least allowable pay. A further increase in the minimum wage to $10.50 per hour is scheduled for January 1, 2024.
Rhode Island's minimum wage laws stipulate a basic hourly rate of $13.00. Employees who work beyond 40 hours in a week are entitled to overtime pay. Specifically, overtime is compensated at a rate of one and one-half times the regular hourly wage. This overtime provision applies to retail and select businesses on Sundays and holidays, as mandated by two distinct statutes that function independently of the minimum wage regulations. Furthermore, a planned wage increase will raise the minimum wage to $14.00 per hour, effective from January 1, 2024.
South Carolina adheres to federal guidelines for minimum wage, as it doesn't have a state-specific minimum wage law. This means employers in South Carolina who are covered by the Fair Labor Standards Act are required to pay employees at least the federal minimum wage, which is currently $7.25 per hour.
South Dakota's minimum wage laws stipulate a base rate of $10.80 per hour. This figure is subject to an annual adjustment guided by a predefined formula. The upcoming revision will see the minimum wage rise to $11.20 per hour, effective from January 1, 2024. This ensures that the minimum wage keeps pace with economic changes and cost of living adjustments.
Tennessee does not have its own state-specific minimum wage laws. Therefore, employers operating within the state must adhere to the Fair Labor Standards Act and are required to pay employees at least the federal minimum wage of $7.25 per hour. This ensures that workers receive a standardized minimum payment for their labor across all sectors subject to federal regulations.
Texas Minimum Wage Laws stipulate that employees are entitled to earn no less than $7.25 per hour. This rate aligns with the federal minimum set by the Fair Labor Standards Act (FLSA), which Texas defers to. Employments covered by the FLSA are not governed by the state's minimum wage provisions. Consequently, Texas does not set a separate state-specific minimum wage but rather adopts the federal rate as its standard.
Utah adheres to the federal minimum wage standard, setting the basic hourly rate at $7.25. State legislation does not specify a distinct minimum wage; rather, it permits the incorporation of the federal rate through administrative measures.
Employment types that fall under the Fair Labor Standards Act are not governed by state wage regulations, as they are already subject to federal oversight. This ensures that workers in Utah are guaranteed the minimum earnings as established at the national level.
Vermont's minimum wage laws mandate a standard hourly rate of $13.18 for businesses with at least two employees. Workers earn this basic rate for the initial 40 hours each week, and any hours beyond that qualify for overtime.
Overtime compensation is calculated at one and a half times the regular pay rate. Should the federal minimum wage exceed Vermont's rate, the higher federal wage would apply. The state has scheduled an increase in the minimum wage to $13.67, starting January 1, 2024.
Virginia's minimum wage laws establish the lowest amount that any worker in Virginia can be paid per hour, which is currently set at $12.00. This legal threshold is intended to ensure a baseline income level for state employees. Employers must comply with this standard, providing their employees with at least the basic hourly rate per hour of work.
Washington State's minimum wage laws dictate a standard minimum hourly wage of $15.74. Employees who work beyond the standard 40-hour workweek are entitled to premium pay at one and one-half times their regular hourly wage. However, this does not apply to employees who opt for compensatory time off instead of the premium pay.
The state's minimum wage is subject to an annual adjustment, guided by a predetermined formula to account for changes in the cost of living and other economic factors. Looking ahead, it's set to increase to $16.28 on January 1, 2024.
West Virginia's minimum wage laws mandate that employers with six or more employees at a single location must pay a base hourly wage of $8.75. When an employee works over 40 hours in a week, they are entitled to overtime pay at a rate of one and one-half times their regular hourly wage.
Starting January 1st, 2024, the minimum wage is set to rise to $10.00 per hour. This increase aims to provide a higher standard of living for hourly workers in the state.
Wisconsin's minimum wage laws stipulate that employees must receive a basic minimum rate of $7.25 per hour. When it comes to overtime, employees are entitled to premium pay after working 40 hours a week.
This overtime pay is calculated at one and one-half times the regular pay rate for any hours worked beyond the designated 40 hours unless a different arrangement is specified in an employment contract or policy.
Wyoming's minimum wage is $5.15 per hour, which applies to businesses within the state's jurisdiction. However, if an employer is covered by the Fair Labor Standards Act (FLSA), they must pay their employees at least the federal minimum wage rate of $7.25 per hour. This ensures that employees covered by the FLSA receive a wage not below the federally mandated level, even if the state minimum wage is lower.
Northern Mariana Islands
The minimum wage in the Northern Mariana Islands is set at $7.25 per hour. This rate is the baseline for the least amount an employer can legally pay an employee for their work per hour. Businesses must adhere to this standard to comply with labor laws in the region. Employees should be aware of this minimum wage to ensure they receive fair compensation for their labor.
American Samoa's minimum wage structure is unique, with industry-specific rates mandated by federal law. The Fair Labor Standards Act (FLSA) oversees employment terms in American Samoa, much like it does in the rest of the United States. However, the Fair Minimum Wage Act of 2007, amended by Public Law 114-61, stipulates that American Samoa will have incremental wage increases of $0.40 every three years on September 30th. These increments will continue until they match the federal minimum wage.
The latest increase occurred on September 30, 2018, and future hikes are planned for 2021, 2024, 2027, and so on. It's important to note that these rates apply across industries rather than specific occupations within those industries. Moreover, while these are the minimum set rates, employers retain the discretion to compensate their employees at higher wages.
The minimum wage laws in the Virgin Islands mandate that employees receive at least $10.50 per hour as their basic rate of pay. This legal requirement ensures workers earn a fair wage for their labor, aligning with the islands' dedication to upholding workers' rights and supporting a sustainable economy. Employers must comply with this standard to maintain lawful business operations within the territory.
Guam's minimum wage laws stipulate that employees must receive a basic minimum rate of $9.25 per hour. Furthermore, any hours worked beyond the standard 40-hour workweek are considered overtime. Employees are entitled to an overtime premium, which is calculated at one and one-half times their regular pay rate. This rate applies unless the employer outlines specific exceptions.
This comprehensive exploration underscores the dynamic nature of minimum wage laws. As a business owner, grasping these changes is imperative for strategic planning and maintaining a satisfied workforce.
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Frequently Asked Questions About Minimum Wage
Dive into our FAQ section as we address common inquiries regarding minimum wage, exploring its definition, differences across various government levels, and the exceptions to its standard hourly rate.
What is Minimum Wage?
The minimum wage is the lowest hourly pay rate employers can legally offer workers. The rate is set by government law and is designed to ensure a minimum standard of living for employees. Depending on local laws and economic conditions, it varies by country, state, or city.
What is the Difference Between the Local, State and Federal Minimum Wage?
The difference between local, state, and federal minimum wage lies in the levels of government that set and regulate them. The federal minimum wage is the baseline set by the U.S. government and is applicable nationwide. State governments determine state minimum wage, which can be higher but not lower than the federal rate. Local minimum wage, set by city or county governments, can exceed state and federal levels if local living costs justify it. Employers must comply with the highest applicable rate.
What are Some Exceptions to Paying at Least the Minimum Wage per Hour?
There are specific exceptions where employers are not required to pay at least the federal minimum wage per hour. These include:
Tipped Employees: Workers who earn a certain amount of monthly tips may be paid less than the minimum wage as long as their tips plus wages equal at least the federal minimum wage.
Student Workers: Full-time students working in retail, service, agriculture, or colleges and universities can be paid 85% of the minimum wage for up to 20 work hours per week.
Younger Workers: Employers can pay workers under 20 years of age a lower wage for the first 90 consecutive calendar days of employment.
Apprentices, Learners, and Disabled Workers: Special certificates from the Department of Labor permit lower wages if the worker is an apprentice, a learner, or has a physical or mental disability that impairs their earning or productive capacity.
Certain Sectors: Small farms, seasonal amusement or recreational establishments, and fishing operations may be exempt or have special provisions under the Fair Labor Standards Act (FLSA).
Employers must adhere to state laws if they are more stringent than federal regulations. Always check local laws, as they can provide different or additional exemptions.
Disclaimer: The purpose of this post is to inform. It does not offer legal, tax, accounting, or professional consulting advice. Do not use it as a substitute for professional advisor consultations. We advise you to consult with qualified professionals knowledgeable about your circumstances and the specific regulations of your state(s) before making decisions or taking any actions.