Employers covered by the minimum wage around the us FLSA but who are not subject to the Puerto Rico Minimum Wage Act must pay at least the federal minimum wage of $7.25 per hour. There is a minimum wage of $14.53 per hour for employers who employ fewer than 6 people and employees engaged in seasonal employment. The premium overtime pay requirement on either a daily or weekly basis is not applicable to employers of fewer than 4 employees. 4 A Montana business not covered by the federal Fair Labor Standards Act whose gross annual sales are $110,000 or less may pay $4.00 per hour. Employers are required to pay no less than the San Francisco minimum wage to employees performing work in San Francisco, including part-time and temporary employees. The FLSA does not provide wage payment collection procedures for an employee’s usual or promised wages or commissions in excess of those required by the FLSA.
State minimum wages
1 Like the federal wage and hour law, State law often exempts particular occupations or industries from the minimum labor standard generally applied to covered employment. Some states also set subminimum rates for minors and/or students or exempt them from coverage, or have a training wage for new hires. Additionally, some local governments set minimum wage rates higher than their respective state minimum wage. Users are encouraged to consult the laws of particular States in determining whether the State’s minimum wage applies to a particular employment.
- The New Hampshire minimum wage equals the federal minimum wage when set below the federal rate.
- This includes exemptions and special situations, including tipped employees.
- That’s especially the case if a locality’s minimum wage was tied to inflation years ago and has not been reexamined since.
- Combined cash & tip minimum wage rate is $10.50 with maximum tip credit of $6.30 (40% of the applicable minimum wage).
- The federal minimum wage rate is a fixed national rate set by the Fair Labor Standards Act (FLSA) and enforced by the U.S.
What is the difference between state minimum wage and federal minimum wage?
The lowest minimum wages based on state law were $5.15 in Georgia and Wyoming, which were lower than the federal government’s requirement. When the state rate is lower than the federal rate, the federal minimum wage of $7.25 supersedes state law for most types of employees. To ensure compliance and avoid penalties, employers must understand and comply with both federal and state minimum wage laws.
California fast-food minimum wage
The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act. The Wage and Hour Division tries to ensure that the information on this page is accurate but individuals should consult the relevant state labor office for official information. The minimum wage in the Portland metro area is $15.95 per hour and the minimum wage in nonurban counties is $13.70 per hour. 6 The minimum wage in New York normal balance City, Nassau County, Suffolk County, and Westchester County is $16.50 per hour. Equal Pay Act of 1963 (Public Law 88-38)Equal pay provisions prohibit sex-based wage differentials between men and women employed in the same establishment who perform jobs requiring equal effort, skill, and responsibility.
State Minimum Wage Laws
Premium pay not applicable to employees who request compensating time off in lieu of premium pay. Residential workers (“live-in workers”) receive premium pay for hours worked over 44 in a payroll week. The New York minimum wage equals the federal minimum wage when set below the federal rate. The New Hampshire minimum wage equals the federal minimum wage when set below the federal rate.
List of Minimum Wage Rates by State 2025
In addition, some counties and cities within states may implement a higher minimum wage than the rest of their state. Sometimes this higher wage applies only to businesses that contract with the local government, while in other cases the higher minimum applies to all work. Below is a table outlining state-by-state minimum wages and wage requirements to make compliance simpler for employers. The federal minimum wage and FLSA require that the vast majority of employees regardless of state (with few exceptions), make a minimum of wage $7.25 per hour. If a state has no minimum wage requirement or law, or the minimum wage required by the state is lower than the federal minimum wage, then the federal minimum wage typically always applies for that state.
Consolidated Minimum Wage Table
- Many also contain a variety of smaller occupational exclusions and in some cases, exclusions for seasonal and part-time youth workers.
- In this two-tier system, employees who receive qualifying health insurance have a minimum wage rate of $10.25.
- We connect businesses with the industry’s leading, independent providers of employer services – everything from payroll to human resources and employee benefits.
- The Fair Labor Standards Act gives you the right to a minimum wage.
The minimum wage and tipped minimum wage are adjusted annually in accordance with Vermont law and take effect at the start of the new year, as outlined in 21 V.S.A. § 384. Employers of tipped employees must pay their employees minimum wage, but they can count the tips the employees receive toward it up to the maximum of $3.02, the allowable Fair Labor Standards Act tip credit of 2003. Other localities around the country are getting close to that $20 mark. Denver, Colorado, currently has a minimum of $18.81 per hour, for example, and Flagstaff, Arizona, has a minimum of $17.85. Altogether, 67 localities have adopted minimum wages higher than their state’s, according to EPI. Here are the localities with the highest minimum wages according to EPI — they’re all in Washington (where the minimum wage is $16.66) and California (where the minimum wage is $16.50).
The https://www.bookstime.com/articles/quicken-bookkeeping federal minimum wage was last revised in 2009 and is currently set at $7.25 per hour. Former President Biden pushed for this to increase to $15 and bumped the minimum wage for federal contractors to $15 in 2022 — possibly as a precursor to a nationwide increase. Small businesses are no longer able to make up minimum wages with tips or medical benefits.