Minimum wage. It's a hot topic today, especially as more workers demand higher pay to meet inflation. The federal minimum wage is at $7.25 — and has been since 2009. And in some states, it's even lower.
This is concerning for many since the cost of living has risen exponentially. Some argue that increasing the minimum wage to $15 will help single-parent homes and raise people out of poverty.
If you're interested in learning more about the U.S. minimum wage, then continue reading.
What is minimum wage?
A minimum wage is the lowest hourly amount that most employers are allowed to pay non-exempt employees. This is regulated by local, state, and federal laws. The goal is to set the bar so employers are unable to exploit workers. The intent is to prevent people from working for meager wages and going deeper into poverty.
You can learn more about the federal minimum wage provisions in the Federal Labor Standards Act (FLSA). It also goes more into detail regarding topics like overtime pay, child labor, and recordkeeping requirements.
Minimum wage laws only apply to non-exempt employees. Most “rank and file” shift workers who are paid by the hour will be considered non-exempt. That means they must be paid at least $7.25/hr (or whatever the current federal minimum rate is) unless the state or city in which they work has legislated a higher minimum wage. The FLSA and some states do allow a sub-minimum wage to be paid to tipped workers in certain situations.
There are some categories of employees who are exempt from minimum wage laws. Exempt employees must be paid on a salary basis (a predetermined amount of compensation per year that is not based on the amount of hours worked), and their job duties must be exempt job duties such as managers, professionals, teachers, and c-suite executives.
The federal minimum wage ($7.25/hr) is the standard across the U.S. However, you'll find many states have minimum wage rates set higher. And other areas where the minimum wage is lower (for employers who are not covered by the FLSA). Some have no state laws regulating minimum wage. Where the state or city minimum wage is different than the federal minimum wage, the general rule is that the employer must pay the highest rate.
What's the difference between local, state, and federal minimum wage?
There are three types of minimum wage:
Federal level: Enforced across the nation
State level: Enforced only in the state
Local level: Enforced only in the city
Is the minimum wage the same for adult and minor employees?
The simple answer — generally yes except the first 90 days of employment. The minimum wage is generally the same for both minors and adults although a handful of states have special “youth” minimum wages. We’re looking at you, Delaware!
The FLSA also allows certain employers to pay employees under age 20 a lower “youth” minimum wage but only for the first 90 days of employment. There are also different rules for meal and rest breaks, and hours of work for minors than there are for adults.
What is the 2021 minimum wage in the USA?
Alright, it's time to review the U.S. minimum wage as of 2021. Let's dive right in.
Please note that some cities, counties, and industries may have higher minimum wages than the state minimum wage. This information is provided for educational purposes only. Please consult with your legal counsel or local department of labor to confirm applicable minimum wage and overtime rules in your location.
Alabama
In Alabama, there's no state law for minimum wage. But, employers who are subject to the FLSA must still pay the federal minimum wage of $7.25/hr.
Alaska
The basic minimum wage rate in Alaska is $10.34/hr. Then for overtime, the premium pay totals one and a half times the employee's normal pay rate (a.k.a. time and a half). So if you're paid $11.00/hr, then overtime pay kicks in at $16.50/hr ($11+ $5.50). Overtime occurs when employees work more than 40 hours per week or over eight hours per day.
Arizona
There's a basic minimum wage in Arizona at $12.15/hr for 2021. Between 2017 and 2020, the minimum wage rate increased annually. Now, it's set to adjust annually based on a specific formula. Some cities, such as Flagstaff have higher rates. Flagstaff’s minimum wage increased to $15/hr in 2021 and is scheduled to boost up to $15.50/hr in 2022.
Arkansas
The minimum wage regulations in Arkansas only apply to employers with at least four employees. The basic minimum wage for these companies is $11/hr. Then the premium pay for overtime is one and a half times the employee's regular pay. Overtime kicks in when an employee works over 40 hours per week.
As of 2019, the minimum wage began a series of scheduled increases until it hit $11/hr in 2021.
California
There are two regulations for basic minimum wage in California. For the employers with 25 employees or less, minimum wage is set to $13/hr. Then for employers with 26 or more employees, the basic minimum wage is $14/hr.
Non-exempt employees are also entitled to overtime pay if they work over 40 hours per week or over 8 hours in one workday (or in the first eight hours worked on the seventh day of work in one workweek). Employees working over 40 hours/wk, more than 8 hours/day, or on a 7th consecutive workday are entitled to time and a half pay. Any hours worked over 12 hours per day, or over 8 on the 7th consecutive workday, will get double time (2x the pay).
For example, if you are paid $13/hr, you will receive $19.50/hr for hours nine, 10, 11, and 12. Then after the 12th hour, you will receive $26/hr ($13 x 2). This also happens when you work over eight hours on the seventh day of your workweek.
Colorado
As of January 1, 2021, the minimum wage in Colorado is $12.32 per hour. Overtime pay is one and a half times the employee's regular pay when they work over 12 hours per day, over 12 consecutive hours, or more than 40 hours per week.
Between 2017 and 2020, the minimum wage increased annually on a set schedule. It will continue to adjust using a specific formula.
Connecticut
As of August 1, 2021, the minimum wage in Connecticut is $13/hr. Premium pay for overtime starts when employees work over 40 hours per week. Those who work in restaurants and hotel restaurants receive mandatory time and a half pay for all hours worked on the seventh consecutive day.
Delaware
Delaware's minimum wage is $9.25/hr as of October 1, 2019. However, on July 19, 2021, Delaware Governor John Carney signed legislation that will gradually increase the state's minimum wage to $15 per hour by 2025.
District of Columbia
As of July 1, 2021, the minimum wage in D.C. is $15.20/hr, and overtime pay is due for nonexempt employees working over 40 hours per week. The minimum wage will progressively increase each successive year after 2021 in proportion to the increase in the Consumer Price Index.
Florida
Florida has a minimum wage of $8.65/hr but this will increase to $10/hr on September 30, 2021.
Georgia
The minimum wage rate in Georgia is only $5.15/hr so if your organization is covered by the federal FLSA, you are required to pay the higher federal minimum wage of $7.25/hr.
Hawaii
As of January 1, 2018, Hawaii's minimum wage rate is $10.10/hr. It has not been increased since then. Nonexempt employees are also entitled to overtime pay for hours worked over 40 hours in a workweek.
Idaho
The current minimum wage in Idaho is $7.25/hr. This is the same as the current Federal Minimum Wage rate. This rate applies to most nonexempt employees in Idaho.
Illinois
The minimum wage rate in Illinois only applies to employers with at least four employees (not including family members). The Illinois minimum wage is currently $11/hr and will gradually increase to $15/hr by 2025. Chicago employers must pay a higher local minimum wage of $15/hr. And the premium pay for overtime is time and a half when employees work over 40 hours in a workweek.
Indiana
Indiana's basic minimum wage rate applies to any employer with at least two employees. The basic minimum rate is $7.25/hr and the premium pay is time and a half for over 40 hours of work in one week.
Iowa
Iowa has a basic minimum wage rate of $7.25/hr. This is set to equal whatever the federal minimum wage is. So as it increases, so will the state's minimum rate.
Kansas
Kansas has a basic minimum wage rate of $7.25/hr. This doesn't include employers exempt from the federal Fair Labor Standards Act.
Kentucky
The basic minimum wage in Kentucky is $7.25/hr. As with most states, nonexempt employees are also entitled to overtime pay for hours worked over 40 in a workweek. Kentucky also entitles employees to time and a half premium pay for hours worked on the seventh-day in a workweek (this does not apply to an employee is not permitted to work more than 40 hours in a workweek).
Louisiana
There's no minimum wage law in Louisiana. So employers here must pay employees according to the FLSA minimum wage of $7.25/hr.
Maine
Maine's basic minimum wage rate is $12.15/hr. When employees work over 40 hours per week, they receive one and half times their regular rate of pay. Between 2017 and 2020, the minimum wage here increased annually and will continue to adjust using a set formula.
Maryland
The basic minimum wage in Maryland is currently $11.75/hr for employers with 15 or more employees. It is $11.60/hr for employers with fewer than 15 employees. The overtime pay starts when employees work over 40 hours in a workweek.
Massachusetts
In Massachusetts, the minimum wage rate is currently $13.50/hr. Employees receive premium pay at one and a half times their regular rate whenever they work over 40 hours per week.
It's also required that the state's minimum wage rate remain at least .50 cents higher than the federal minimum wage.
Michigan
The minimum wage rate and premium pay only apply to employers with at least two employees. The basic minimum wage is currently $9.65/hr, and overtime begins when an employee works over 40 hours in a workweek.
Between now and 2030, Michigan's minimum wage will grow annually on a set schedule. But only if the unemployment rate in the preceding year isn't more than 8.5%.
Minnesota
There are two minimum wage laws in Minnesota. The first applies to employers with at least $500,000 in annual gross revenues. For these companies, the minimum wage is currently $10.08/hr. Small employers making less than $500,000 in annual gross revenues have to pay at least $8.21/hr for minimum wage.
For employers covered by the FLSA, overtime begins after 40 hours worked in a single workweek. Employers not covered by the FLSA pay overtime for hours worked over 48 in a workweek.
The minimum wage in Minnesota will adjust annually using a set formula.
Mississippi
There's no state law in Mississippi for minimum wage. So, employers here are required to pay the FLSA rate of $7.25/hr.
Missouri
The minimum wage in Missouri is currently $10.30/hr, and premium pay for overtime starts when an employee works over 40 hours in a workweek. The state minimum wage law excludes employees of retail or service businesses with gross annual sales of less than $500,000. In 2022 and 2023, the minimum wage rate will increase by 85 cents per hour until it reaches $12/hr in 2023.
Montana
The minimum wage in Montana depends on the size of the business. For companies grossing over $110,000 in annual sales must pay at least $8.75/hr and then provide overtime pay to nonexempt employees working over 40 hours in a workweek.
Companies that aren't covered by FLSA, and who earn $110,000 or less in gross annual sales may pay a lower minimum wage of $4/hr plus time and a half for hours worked over 40 in a week.
Montana's minimum wage will increase annually using a set formula.
Nebraska
The minimum wage law in Nebraska applies to employers with at least four employees. The minimum rate is currently $9/hr. Overtime at time and a half is due for hours worked over 40 in a workweek.
Nevada
The basic minimum wage differs depending on whether the employer provides qualifying health insurance benefits to employees. Those that don't must pay a minimum wage rate of $9.75/hr. And those that do must pay at least $8.75/hr. The minimum rate adjusts yearly using a set formula.
Nevada requires payment of an overtime premium of one and one-half times an employee’s regular rate when the employee works more than 40 hours in any scheduled week of work. This is identical to the federal overtime requirement. In addition to weekly overtime, however, Nevada also requires payment of overtime where an employee works more than eight hours in any workday, so long as that employee is paid less than one and one-half times the required minimum wage.
New Hampshire
The basic minimum wage rate in New Hampshire currently sits at $7.25/hr. Overtime pay for employees is required for workweeks exceeding 40 hours. The minimum wage rate here is equal to the federal minimum when the state's minimum is lower than the federal rate.
New Jersey
The minimum wage rate in New Jersey is $12/hr for employers who are non-seasonal and employ 6 or more employees. Seasonal employees and those working for business who employ 5 or fewer employees must receive $11.00 per hour. The state's minimum wage adjusts yearly using a set formula.
The premium pay for overtime work in New Jersey is time and a half. It starts after 40 hours in a workweek.
New Mexico
The basic minimum wage in New Mexico is $10.50/hr. The premium pay for overtime work starts when employees exceed 40 hours in a workweek.
New York
The basic minimum wage in New York is currently $12.50/hr. However, employers in Long Island and Westchester, and NYC must pay the higher local minimum of $15/hr. Employees are also entitled to overtime pay for hours worked over 40 in a workweek.
Employers in the following industries have to provide 24 hours of consecutive rest weekly:
Mercantile establishment
Factory
Restaurant
Hotel
Freight/passenger elevator
Theater
Janitors
Superintendents
Firemen
Engineers
Building with security guards
North Carolina
The basic minimum wage in North Carolina is $7.25/hr. The premium pay for overtime begins after employees work over 40 hours in a workweek. For seasonal amusement or recreational businesses, the overtime pay starts after 45 hours worked in a workweek.
North Dakota
North Dakota's minimum wage rate is $7.25/hr, and the premium pay for overtime starts after 40 hours worked in a workweek.
Ohio
The minimum wage rate in Ohio depends on the size of the company. For employers with annual gross sales of $323,000 or more must pay at least $8.80/hr. The overtime pay for workers is time and a half for over 40 hours in a workweek.
Then for employers making under $323,000 in annual sales, it's $7.25/hr, and the same overtime guidelines apply. The minimum wage rate is set to adjust annually using a set formula.
Oklahoma
In Oklahoma, employers with at least ten full-time employees at a single location, and those grossing more than $100,000 in annual sales (regardless of the number of full-time employees), must pay at least $7.25/hr.
All other employers must pay at least $2/hr. This law excludes employers covered under the federal FLSA. Also, the state's minimum wage law doesn't contain current dollar minimums. Instead, it uses the federal minimum wage rate as a reference.
Oregon
The basic minimum wage in Oregon is $12.75/hr, and the premium pay for overtime applies after 40 hours in one workweek. There's also premium pay for overtime over 10 hours worked in one workday. But this only applies to non-farm canneries, driers, or packing plants and in mills, factories, or manufacturing establishments. This excludes sawmills, shingle mills, planing mills, and logging camps.
The minimum wage rate in Oregon will increase yearly on a set schedule until 2022, and will continue adjusting yearly after that using a set formula.
Pennsylvania
Pennsylvania's basic minimum wage rate is $7.25/hr. And the overtime pay is time and a half for employees who work over 40 hours per week.
Rhode Island
The minimum wage rate in Rhode Island is $11.50/hr. The premium pay for overtime starts after 40 hours of work in a single workweek. Employees are also given time and a half overtime pay when they work on holidays and Sundays. But this only applies to retail and certain businesses (under separate minimum wage laws).
South Carolina
There's no law for minimum wage in South Carolina. So the employers who are covered by the FLSA must pay their workers at least $7.25/hr, the current federal minimum wage.
South Dakota
The minimum wage in South Dakota is currently $9.45/hr. This rate adjusts yearly using a set formula.
Tennessee
Tennessee doesn't have a law governing minimum wages. Employers who are covered by the FSLA must nonetheless pay federal minimum wage of $7.25/hr.
Texas
The minimum wage rate in Texas is $7.25/hr. However, this excludes employers covered under the FSLA. There are no current dollar minimums for the state's minimum wage law. Instead, it uses the federal minimum wage as a reference.
Utah
The minimum wage in Utah is the federal minimum wage, currently $7.25/hr.
Employers covered under FSLA are excluded from the state law.
Virginia
The minimum wage in Virginia is $9.50/hr for employers with 4 or more employees.
Also, any employers subject to FSLA are excluded from the state minimum wage law.
Vermont
Employers with at least two employees must pay a basic minimum wage rate of $11.75/hr or more. They also have to pay time and a half to employees that work over 40 hours per week.
The minimum wage in Vermont is automatically adjusted to match the federal minimum wage if the State's minimum is lower.
Washington
The basic minimum wage in Washington is $13.69/hr. The premium pay for overtime work starts after 40 hours are worked in a single workweek.
There's no premium pay for employees who request to compensate time off in place of overtime pay.
Between 2017 and 2020, the minimum wage rate increased yearly and will continue adjusting each year on a set schedule.
Wisconsin
The minimum wage rate in Wisconsin is $7.25/hr. The overtime pay is time and a half for employees who work over 40 hours in a workweek.
West Virginia
The minimum wage law in West Virginia applies to employers with at least six employees in a single location. The basic minimum wage rate is $8.75/hr. And the premium pay kicks in after 40 hours of work in a single workweek.
Wyoming
Wyoming's minimum wage rate is $5.15/hr but doesn't apply to employers subject to FSLA. Instead, they must pay federal minimum wage, currently $7.25/hr.
Staying within state minimum wage requirements
If you're an employer, it's vital to stay abreast of changes in your state's minimum wage laws. This is especially so if there are unique requirements for your industry.
Hopefully, this guide will help you abide by the current minimum wage rates as of 2021.
If you'd like to learn more, then check out Minimum Wage, Shift Work, and How Consumers Are Changing Legislation for the Better on the Deputy blog.
