State Wage Laws
Essential information and resources to help you navigate state minimum wage and hour laws
Minimum wage laws vary significantly across the U.S. Use this guide to understand state wage and hour laws, no matter where your clients are. Bloomberg Law helps you navigate complex labor and employment topics and understand how they vary from state to state.
Your labor and employment law connection
Get focused, accurate, and timely coverage on how to respond quickly and effectively to state wage law issues. Save valuable time when you trust Bloomberg Law research solutions to tackle complex L&E tasks with ease.
Labor and employment (L&E) attorneys advise on a variety of complex wage and labor topics, including navigating wage and labor laws at the federal, state, and local levels. Labor and employment laws present a variety of challenges due to complex regulations, exemptions, and penalties that differ from state to state.
Wage and hour laws govern the relationship between workers and their employers. In general, minimum wage laws establish a base level of pay and overtime compensation that employers are required to offer certain covered employees. The laws also govern pay practices, timing, and methods of paying the minimum wage that employers must meet, such as provisions regarding tipped employees or potential lodging for employees, for example.
What are federal minimum wage laws?
Federal minimum wage laws and provisions apply to most employees working in the U.S., its territories, and its possessions. The current federal minimum wage is set at $7.25 per hour. Despite widespread discussion in legal circles as well as in the media about a potential increase to this amount, the federal minimum wage has remained unchanged since July 24, 2009.
Fair Labor Standards Act
In 1938, the Fair Labor Standards Act (FLSA) first established a federal minimum wage and hour-based protections for covered, nonexempt employers and employees in the U.S. workforce.
Employees who are covered by the FLSA receive several benefits. The three main components of the FLSA are:
- A federal minimum wage of $7.25 per hour
- Overtime pay of time-and-a-half for time worked that exceeds 40 hours per week
- Child labor protections and regulations for the employment of minors
Minimum wages by the FLSA are not deemed paid unless done so finally and unconditionally, otherwise known as “free and clear.” An employee must be paid in cash or nonnegotiable instruments such as an employer’s check or direct deposit, according to U.S. Department of Labor (DOL) regulations. Any deductions made from a worker’s paycheck, like deductions for tools or the cost of uniforms, cannot lower the worker’s pay below the minimum wage.
Generally, employers must maintain records of each employee’s full name, home address, sex, occupation, date of birth, regular rate of pay, wages and overtime wages paid, hours worked, and any credits made against the minimum wage. All records must be kept for a minimum of three years, per FLSA guidelines.
Wage and hour law dictated by the FLSA doesn’t require payment for time not worked, such as sick leave or vacation time, but it does include provisions for specific compensation circumstances, such as tips, gratuities, meals, and lodging.
Tips and gratuities
Employees who receive tips are subject to certain FLSA requirements. For example, employers of those who regularly receive at least $30 a month in tips can claim a federal tip credit – which allows an employer to claim a partial credit against the minimum wage obligation to a tipped employee, based on the amount the employee receives in tips – of $5.12 an hour. Subtracting this credit from the federal minimum wage of $7.25 per hour, the minimum wage for these employees is therefore then $2.13 an hour. That said, if an employee’s hourly average wage, plus tips, is less than $7.25 an hour, the employer is required to make up the difference.
When it comes to state and other local wage laws, regulations related to tips and gratuities can vary. Some state wage laws are more stringent with the tip credit limit or may prohibit tip credits altogether. Oregon, for example, does not allow a tip credit.
Meals, lodging, and other facilities
If an employer provides board, lodging, or other facilities to an employee, this may be considered a part of the wages due to an employee. However, the FLSA limits the circumstances for which this can occur. Board, lodging, or other facilities can be considered an additional element of wage compensation under the FLSA so long as they are provided primarily for the benefit of the employee and do not exceed “reasonable cost” for the employer.
This can be a challenging area to manage and regulate for L&E attorneys, as each circumstance will vary based on the job and individual at hand, as well as state and local regulations, too. For example, in the case of a live-in nanny in Washington, D.C., the circumstances were deemed integral to the job, versus another case where an employer took advantage of an employee and illegally added an arbitrary rental cost to the housing provided.
Who is covered by federal wage law?
Those subject to FLSA requirements can include:
- Individuals
- Corporations, partnerships, and other businesses entities
- Religious enterprises
- Government contractors
While there are some exemptions, an employer is generally considered covered by the FLSA if the following criteria are met:
- The business is a covered enterprise (where the employer must have a total annual sales volume of at least $500,000).
- The work is performed in the U.S. or a U.S. territory, including American Samoa.
- An employment relationship exists between the employer and the employee. Generally, an employment relationship is defined as one in which an employee performs work for an employer in exchange for compensation.
Even if a business doesn’t meet the coverage criteria as an enterprise, some employees may be subject to the FLSA as individuals. An individual employee will also be covered if they are “engaged in commerce” or in the production of goods for commerce-related work, according to the FLSA.
What automatically exempts an employer from FLSA provisions?
The FLSA impacts more than 143 million U.S. residents, but it doesn’t apply to all employers and employees. Employers must have a total annual sales volume of at least $500,000 to be covered, with some exceptions for institutions that care for the sick or elderly, higher education, and public agencies.
Certain employees, generally with specific job duties or from specific industries, are excluded from federal minimum wage and overtime provisions, according to the FLSA. Employees who are exempt from federal minimum wage requirements include:
- Executive, administrative, or professional employees paid on a salaried basis of at least $684 per week
- Certain outside sales employees whose primary duties are making sales for the use of facilities for which a consideration will be paid by the client or customer
- Creative professionals and highly skilled workers in computer-related roles, receiving at least $684 a week
- Full-time students, apprentices, student-learners, or disabled workers can sometimes be exempt from minimum wage requirements
- Family members working for a family business
Note that this is not an all-inclusive list. Employers should carefully check their exact terms and conditions based on their type of work and local regulations.
Exempt industries
Some major industry groups are exempt from both the overtime and minimum wage provisions of the FLSA (or, in some cases, only the overtime regulation). These include those employing:
- Any employee working in agriculture, subject to certain requirements and conditions
- An employee who performs duties of catching, propagating, harvesting, cultivating, or farming any kind of aquatic forms of animal and vegetable life
- Those who work in transportation, such as motor or air carriers
- Live-in employees and babysitters, who are eligible for certain overtime exemptions
Some of these exemptions also differ on a state-by-state basis, and often depend on the industry standards in that state. In Alaska, for example, there is an exemption specifically for workers who take part in the hand-picking of shrimp. When it comes to state-level exemptions, it’s best to review the individual provisions.
Do states have different wage laws?
While federal minimum wage laws and provisions apply to all employees working in the U.S., its territories, and its possessions, state and local jurisdictions have a right to establish their own wage laws separate from the FLSA, making the location where work is performed a key element of wage law.
State minimum wage
State and local jurisdictions have a right to establish their own minimum wage laws. Employers located in states or cities with federal, state, and local minimum wage requirements must comply with all applicable wage requirements. For example, a small business in Wyoming with annual sales of $100,000 would have to pay the state minimum wage of $5.15, while a larger business in that state would have to comply with both the state and federal minimum wage by paying $7.25.
State overtime pay requirements
The FLSA requires nonexempt employees to be paid time-and-a-half for all time worked that exceeds 40 hours in a workweek. To calculate this rate, an employer should multiply the employee’s regular rate of pay by 1.5.
That said, some states have their own requirements for overtime pay that differ from the federal rules. In New York, for example, a 60-hour workweek is in place for in-state farm workers. Under this regulation, if a farm worker labors for more than 60 hours in a week in New York, they must be paid 1.5 times their regular pay rate as an overtime premium.
Attorneys advising employers must ensure that their clients’ overtime practices meet FLSA requirements, while also adhering to state requirements.
What is the minimum wage in all 50 states?
Forty-five states and the District of Columbia have their own minimum wage laws and regulations that go along with the minimum amount to be paid hourly. In addition to states having their own wage requirements, local jurisdictions can create minimum wage laws, too. For example, in New York City as well as New York’s Nassau, Suffolk, and Westchester counties, the minimum wage for nonexempt employers is $15 per hour, but the hourly minimum wage for the rest of the state is $14.20. In some states, local governments also have a right to establish minimum wage rates for private employers that are higher than the statewide minimum wage rate.
States with their own minimum wage laws
Below is a comprehensive list to help attorneys navigate these varying wage regulations by state and territory. Changes to state and other local minimum wage laws can happen on an annual basis, with most minimum wage rates becoming effective Jan. 1 of the following year.
Alaska wage laws
- Minimum wage: $11.73 per hour.
- Tip and gratuity regulation: There is no tip credit in Alaska.
Arizona wage laws
- Minimum wage: $14.35 per hour.
- Tip and gratuity regulation: Maximum tip credit is $3 per hour, and the tipped-worker hourly minimum wage is $11.35 adjusted annually for inflation.
Arkansas wage laws
- Minimum wage: $11 per hour.
- Tip and gratuity regulation: Maximum tip credit is $8.37, and the tipped-worker hourly minimum wage is $2.63.
California wage laws
- Minimum wage: $16 per hour.
- Tip and gratuity regulation: There is no tip credit in California.
Colorado wage laws
- Minimum wage: $14.42 per hour.
- Tip and gratuity regulation: Maximum tip credit is $3.02, and the tipped-worker hourly minimum wage is $11.40.
- Local governments also have a right to establish minimum wage rates for private employers that are higher than the statewide minimum wage rate.
Connecticut wage laws
- Minimum wage: $15.69 per hour.
- Tip and gratuity regulation: Maximum tip credit is $9.31 for wait staff and $7.46 for bartenders. The hourly minimum wage for wait staff is $6.38 and $8.23 for bartenders.
Delaware wage laws
- Minimum wage: $13.25 per hour.
- Tip and gratuity regulation: Maximum tip credit is $11.02, and the tipped-worker hourly minimum wage is $2.23.
- Delaware’s minimum wage will rise annually until it reaches $15 in 2025.
District of Columbia wage laws
- Minimum wage: $17 per hour.
- Tip and gratuity regulation: Maximum tip credit is $9, and the tipped-worker hourly minimum wage is $8.
Florida wage laws
- Minimum wage: $12 per hour.
- Tip and gratuity regulation: Maximum tip credit is $3.02 per hour, and the tipped-worker hourly minimum wage is $8.98.
Georgia wage laws
- Minimum wage: $5.15 per hour.
- Tip and gratuity regulation: There is no tip credit in Georgia.
Hawaii wage laws
- Minimum wage: $14 per hour.
- Tip and gratuity regulation: Tipped employees are those who regularly receive more than $20 – rather than the federal level of $30 – per month in tips. The state’s maximum tip credit is $1.25, and the hourly tipped minimum wage is $12.75.
Illinois wage laws
- Minimum wage: $14 per hour.
- Tip and gratuity regulation: Maximum tip credit is $5.60, and the tipped-worker hourly minimum wage is $8.40.
- The minimum wage in Illinois will rise annually until it reaches $15 in 2025.
Maine wage laws
- Minimum wage: $14.15 per hour.
- Tip and gratuity regulation: Maximum tip credit is $7.07, and the tipped-worker hourly minimum wage is $7.08.
Maryland wage laws
- Minimum wage: $15 per hour.
- Tip and gratuity regulation: Maximum tip credit is $11.27, and the tipped-worker hourly minimum wage is $3.63.
Massachusetts wage laws
- Minimum wage: $15 per hour.
- Tip and gratuity regulation: Maximum tip credit is $8.25, and the tipped-worker hourly minimum wage is $6.75.
Michigan wage laws
- Minimum wage: $10.33 per hour.
- Tip and gratuity regulation: Maximum tip credit is $6.40, and the tipped-worker hourly minimum wage is $3.93.
Minnesota wage laws
- Minimum wage: $10.85 per hour for large employers, or those with annual gross revenue of at least $500,000; $8.85 per hour for small employers, or those with an annual gross revenue of less than $500,000.
- Tip and gratuity regulation: There is no tip credit in Minnesota.
Missouri wage laws
- Minimum wage: $12.30 per hour.
- Tip and gratuity regulation: Maximum tip credit is $6.15, and the tipped-worker hourly minimum wage is $6.15
- Missouri wage law does not apply to public employees.
Montana wage laws
- Minimum wage: $10.30 per hour.
- Tip and gratuity regulation: There is no tip credit in Montana.
Nebraska wage laws
- Minimum wage: $12 per hour.
- Tip and gratuity regulation: Maximum tip credit is $9.87 and the tipped-worker hourly wage is $2.13.
- The minimum wage in Nebraska is scheduled to increase annually until it reaches $15 in 2026.
Nevada wage laws
- Minimum wage: $11.25 per hour if qualifying health benefits are not offered; $10.25 if qualifying health benefits are offered.
- Tip and gratuity regulation: There is no tip credit in Nevada.
- Nevada wage law is changing July 1, 2024, from a two-tiered minimum wage system to a single, hourly minimum wage that applies to all covered employers, regardless of whether they offer qualifying health benefits to employees.
New Jersey wage laws
- Minimum wage: $15.13 per hour for most employers; $13.73 for seasonal and small employers (no more than five employees); $12.81 for agricultural employers; $18.13 for long-term care facility staff.
- Tip and gratuity regulation: Maximum tip credit is $9.87, and the tipped-worker hourly wage is $5.26.
New Mexico wage laws
- Minimum wage: $12 per hour.
- Tip and gratuity regulation: Maximum tip credit is $9, and the tipped-worker hourly wage is $3.
New York wage laws
- Minimum wage: $16 per hour in New York City, Nassau, Suffolk, and Westchester counties; $15 per hour in the rest of the state.
- Tip and gratuity regulation: The regulation regarding tip and gratuity payment varies depending on the type of industry one works in, as well as the area in which one works.
Ohio wage laws
- Minimum wage: $10.45 per hour for businesses with annual gross incomes of at least $385,000.
- Tip and gratuity regulation: Maximum tip credit is $5.20 for businesses with annual gross incomes of at least $385,000, and the tipped-worker hourly minimum wage is $5.25.
Oregon wage laws
- Minimum wage: Standard minimum wage rate of $14.20 per hour; $15.45 per hour in Portland metro area; $13.20 per hour in nonurban counties.
- Tip and gratuity regulation: There is no tip credit in Oregon.
Puerto Rico wage laws
- Minimum wage: $9.50 per hour.
- Tip and gratuity regulation: Maximum tip credit is $7.37, and the tipped-worker hourly minimum wage is $2.13.
Rhode Island wage laws
- Minimum wage: $14 per hour.
- Tip and gratuity regulation: Maximum tip credit is $10.11, and the tipped-worker hourly minimum wage is $3.89.
South Dakota wage laws
- Minimum wage: $11.20 per hour.
- Tip and gratuity regulation: Maximum tip credit is $5.60, and the tipped-worker hourly minimum wage is $5.60 for employees who regularly receive more than $35 a month in tips.
Vermont wage laws
- Minimum wage: $13.67 per hour.
- Tip and gratuity regulation: Maximum tip credit is $6.83, and the tipped-worker hourly minimum wage is $6.84.
Virginia wage laws
- Minimum wage: $12 per hour.
- Tip and gratuity regulation: Maximum tip credit is $9.87, and the tipped-worker hourly minimum wage is $2.13.
- In Virginia, if the employee doesn’t earn at least the hourly state minimum wage in tips, the employer must pay the employee the difference.
Washington wage laws
- Minimum wage: $16.28 per hour.
- Tip and gratuity regulation: There is no tip credit in Washington.
West Virginia wage laws
- Minimum wage: $8.75 per hour.
- Tip and gratuity regulation: Maximum tip credit is $6.13, and the tipped-worker hourly minimum wage is $2.62.
Wyoming wage laws
- Minimum wage: $5.15 per hour.
- Tip and gratuity regulation: Maximum tip credit is $3.02, and the tipped-worker hourly minimum wage is $2.13.
- If the wages paid plus tips do not equal at least Wyoming state minimum wage, the employer must pay the difference.
States that follow federal minimum wage
As noted above, many states set their state minimum wage law to be the same as the federal minimum wage of at least $7.25. Currently, 13 states have minimum wage laws that align with the federal minimum wage:
- Idaho
- Indiana
- Iowa
- Kansas
- Kentucky (Private companies with state government contracts must pay at least $10.10 per hour to those who perform work in connection with such contracts.)
- New Hampshire
- North Carolina
- North Dakota
- Oklahoma
- Pennsylvania
- Texas
- Utah
- Wisconsin
Note that while these states set the same rate as the federal minimum wage, they may have their own coverage requirements, enforcement mechanisms, and penalties.
Which states do not have wage laws?
Five states don’t have specific laws regarding payment of a minimum wage. Therefore, the federal wage requirements and protections prescribed by the FLSA are the only wage laws covering employees and employers in these states, and are therefore strictly followed:
- Alabama
- Louisiana
- Mississippi
- South Carolina
- Tennessee
Which state has the highest minimum wage? Which state has the lowest minimum wage?
Excluding those states that follow the federal minimum wage of $7.25 per hour, a few states stand out as having higher and lower minimum wages for covered employers.
States or jurisdictions with the highest minimum wages (from highest to lowest)
- District of Columbia: $17
- Washington: $16.28
- California: $16
- New York City and Nassau, Suffolk, and Westchester counties: $16
- Connecticut: $15.69
States or jurisdictions with the lowest minimum wages (from lowest to highest)
- Georgia: $5.15
- Wyoming: $5.15
- West Virginia: $8.75
- Minnesota: $8.85 (for small employers, or those with an annual gross revenue of less than $500,000)
- Puerto Rico: $9.50
How are wage laws enforced?
The DOL enforces the FLSA through its Wage and Hour Division. When employees make complaints, whether related to overtime regulation, mistreatment of underage employees, or general minimum wage law, the division investigates and has the right to inspect an employer’s facilities, review records, and question other employees. Employees and the Wage and Hour Division itself can sue employers to recover unpaid wages, liquidated damages, and attorney fees. However, if the division files the lawsuit, affected employees may not file a separate lawsuit, too.
Each state’s own labor department enforces state-specific wage laws and regulations.
What are the consequences for employers that do not comply with wage laws?
Fines and imprisonment are possible consequences for employers that don’t comply with federal and state wage laws. Under the Federal Civil Penalties Inflation Adjustment Act of 2015, the civil penalty fine imposed for violations is adjusted regularly for inflation. The DOL’s Wage and Hour Division last increased the civil penalty amount it imposes for repeat or willful minimum wage and overtime violations in 2019, from $1,964 to $2,014.
A criminal conviction for FLSA violations can bring penalties of up to $10,000 per violation for a first conviction, and six months in prison for a second. There is a six-year statute of limitations applied to actions before a federal administrative law judge.
A smarter, faster approach to state wage law with Bloomberg Law
Labor and employment law is a complex practice area that demands a keen understanding of the latest developments and updates regarding state wage and hour laws, compliance requirements, and more. Download our chart of state minimum wage rates and credits for easy comparison of state-by-state wage laws, including exemptions and planned rate increases.
Bloomberg Law can help attorneys stay ahead of L&E developments with expert analysis, comprehensive coverage, news, and practice tools. See it for yourself – request a demo.