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Minimum Wage by U.S. state and U.S. territory (American Samoa, Guam, Puerto Rico, Virgin Islands), as of July 24, 2009.      States with minimum wage rates higher than the Federal rate      States and territories with minimum wage rates the same as the Federal rate      States with no minimum wage law      States and territories with minimum wage rates lower than the Federal rate

This is a list of the minimum wages (per hour) in each state and territory of the United States, for jobs covered by federal minimum wage laws. If the job is not subject to the federal Fair Labor Standards Act, then state, city, or other local laws may determine the minimum wage. A common exemption to the federal minimum wage is a company having revenue of less than $500,000/year while not engaging in any interstate commerce. Under the federal law, workers that receive a portion of their salary from tips, such as wait staff, are only required to have their total compensation, including tips, to meet the minimum wage, so often their hourly wage, not including tips, is less than the minimum wage.

In addition, some counties and/or cities within states may observe a higher minimum wage than the rest of the state in which they are located; sometimes this higher wage will apply only to businesses that are under contract to the local government itself, while in other cases the higher minimum will be enforced across the board.

Currently, Washington has the highest minimum wages of all 50 states, followed by Oregon and Connecticut. Kansas for many years had the lowest state approved minimum wage, set at $2.65, but that changed to $7.25 on January 1, 2010. The lowest currently are in both Georgia and Wyoming. Five states have no minimum wage enacted under state law. In these states, the current federal minimum wage applies for most jobs. Out of the entire country, states or cities, Santa Fe has the highest minimum wage at $9.85.[1]

Contents

Minimum Wage levels

Federal

Federal Level Notes
Federal $7.25 The Fair Labor Standards Act sets the federal minimum wage at $7.25 per hour. The Fair Minimum Wage Act of 2007, signed into law on May 25, 2007,[2] increased the minimum wage over two years.

State

Note: The following tables can be sorted alphabetically or numerically using the Sort none.gif icon.

State Level Notes
Alabama None Federal minimum applies.[3]
Alaska $7.75
Arizona $7.25[4] Raised pursuant to FMWA.[5] Previous rate pursuant to Arizona Proposition 202. This rate will be automatically adjusted annually based on the U.S. Consumer Price Index. This rate increase does not affect student workers in places such as libraries and cafeterias because those positions are given by universities, which are State entities.[6]
Arkansas $7.25 Applicable to employers of 4 or more employees
California $8.00[7] San Francisco $9.79[8]. IWC Order No. 4-2001 1,A,1,f states that exempt employees must make twice the state minimum wage.
Colorado $7.24[9] Tipped employees earn $4.22/hour.
Connecticut $8.25 This rate was increase to $8.25 on January 1, 2010. Tipped employees earn $5.69/hour.
Delaware $7.25 Raised pursuant to FMWA.
District of Columbia $8.25 Raised pursuant to FMWA. This rate is automatically set at $1 above the Federal minimum wage rate if the District of Columbia rate is lower.
Florida $7.25 Raised pursuant to FMWA. If and when it is below the federal rate, it rises with inflation. $4.19 per hour for tipped employees.
Georgia $7.25 Raised pursuant to FMWA. (As of 2010) Only applicable to employers of 6 or more employees. If less than 6 then there is no minimum at all. Tipped employees earn $2.13
Hawaii $7.25
Idaho $7.25 Raised pursuant to FMWA.
Illinois $8.00 The minimum wage will increase to $8.25 on July 1, 2010. Employers may pay anyone under the age of 18 $0.50 less. Tipped employees earn $4.80 (employers may claim credit for tips, up to 40% of wage[10]).
Indiana $7.25 Raised pursuant to FMWA.
Iowa $7.25[11] Most small retail and service establishments grossing less than 300,000 annually are not required to pay the minimum wage. Tipped employees can be paid 60% of the minimum wage, which is currently $4.35.
Kansas $7.25 Increased to $7.25 on January 1, 2010.[12] For many years, the minimum wage was set to $2.65, the lowest in the nation.
Kentucky $7.25 Raised pursuant to FMWA.
Louisiana None Federal minimum applies.
Maine $7.50 For tipped employee's minimum wage is set at $3.75
Maryland $7.25 Raised pursuant to FMWA.
Massachusetts $8.00[13] $2.63 for service (tipped) employees, $1.60 for agricultural employees.
Michigan $7.40 ($2.65 for service (tipped) employees, Minors 16–17 years of age may be paid 85% of the minimum hourly wage rate (currently $6.29 per hour). Training wage for new employees ages 16 to 19 of $4.25/hour for first 90 days of employment.
Minnesota $6.15
Mississippi None Federal minimum applies.
Missouri $7.25 Raised pursuant to FMWA. This rate is automatically adjusted annually based on the U.S. Consumer Price Index rounded to the nearest five cents.
Montana $7.25 Raised pursuant to FMWA. This rate is automatically adjusted annually based on the U.S. Consumer Price Index. Tip income may not be applied as an offset to an employee's pay rate. The minimum pay is $4/hour for business with less than $110,000 in annual sales.[4]
Nebraska $7.25 Raised pursuant to FMWA.
Nevada $7.55 Rises with inflation.[14]
New Hampshire $7.25 The minimum wage is automatically replaced with the Federal minimum wage rate if it is higher than the State minimum wage rate.[4]
New Jersey $7.25 Raised pursuant to FMWA.
New Mexico $7.50 Not linked to the federal rate.[4]

$9.85 in Santa Fe[15] (now covering all employees, since expansion to employers with less than 25 employees, as of January 1, 2008).[16][17]

New York $7.25 Raised pursuant to FMWA. New York also has a minimum for exempt employees $536.10/week as of January 1, 2007.
North Carolina $7.25 Raised pursuant to FMWA.
North Dakota $7.25 Raised pursuant to FMWA.
Ohio $7.30 $7.25 for 14 and 15 year olds and those whose employers gross less than $267,000[18]. This rate is automatically adjusted annually on every January 1 based on the U.S. Consumer Price Index. $3.65 plus tips for tipped employees. It will remain at $7.30 for 2010.[19]
Oklahoma $7.25 Raised pursuant to FMWA. Federal minimum wage used as reference; no actual amounts written in law.[4] $2.00/hour for work not covered by federal minimum wage OK Statutes 40-197.5
Oregon $8.40 Rises with inflation.
Pennsylvania $7.25 Raised pursuant to FMWA.
Rhode Island $7.40 $2.89 for employees receiving tips.
South Carolina $7.25 Federal minimum applies.
South Dakota $7.25 Raised pursuant to FMWA.
Tennessee None Federal minimum applies.
Texas $7.25 Raised pursuant to FMWA. Federal minimum wage used as reference; no actual amounts written in law.[4][20]
Utah $7.25 Raised pursuant to FMWA. Federal minimum wage used as reference after legislative action; no actual amounts written in law. Current rate took effect on September 8, 2007.[4]
Vermont $8.06 Rises with inflation.[4]
Virginia $7.25 Raised pursuant to FMWA. Federal minimum wage used as reference.[4]
Washington $8.55 Employees aged 14 or 15 may be paid 85% of the minimum wage, which for 2009 is $7.27 per hour. Increases annually by a voter-approved cost-of-living adjustment based on the federal Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
West Virginia $7.25 Applicable to employers of 6 or more employees at one location not involved in interstate commerce.[4]
Wisconsin $7.25 Raised pursuant to FMWA.
Wyoming $5.15 Not linked to the federal rate.[4] $2.13 for employees receiving tips.

Territory

Territory Level Notes
American Samoa $2.68-$4.69 Varies by industry.[21] Planned increases to $7.25 by 2014.[22]
Guam $7.25[4]
Northern Mariana Islands $3.55 Since July 23, 2007. Planned increases to $7.25 by 2015.[22]
Puerto Rico $4.10[4] Employers covered by the Federal Fair Labor Standards Act (FLSA) are subject only to the Federal minimum wage and all applicable regulations. Employers not covered by the FLSA will be subject to a minimum wage that is at least 70 percent of the Federal minimum wage or the applicable mandatory decree rate, whichever is higher. The Secretary of Labor and Human Resources may authorize a rate based on a lower percentage for any employer who can show that implementation of the 70 percent rate would substantially curtail employment in that business.

Puerto Rico also has minimum wage rates that vary according to the industry. These rates range from a minimum of $4.25 to $7.25 per hour.

U.S. Virgin Islands $7.25 Except businesses with gross annual receipts of less than $150,000, then $4.30. (In practice, the Virgin Islands adopts the Federal per hour rate)

History of the Federal Minimum Wage

The U.S. Federal Minimum Wage, originally created by the Fair Labor Standards Act in 1938, has risen in nominal terms over time. Originally $0.25 per hour, the federal minimum hourly wage for nonfarm workers rose accordingly:

Year Level Notes
1939 30 cents
1945 40 cents
1950 75 cents
1956 $1.00
1965 $1.25
1967 $1.00 Fell back to 1956 levels
1968 $1.15
1969 $1.30
1970 $1.45
1971 $1.60
1974 $1.90
1975 $2.00
1976 $2.20
1977 $2.30
1978 $2.65
1979 $2.90
1980 $3.10
1981 $3.35
1990 $3.80
1991 $4.25
1996 $4.75
1997 $5.15
2007 $5.85
2008 $6.55
2009 $7.25
History of the federal minimum wage in real and nominal dollars in the United States.

The Fair Labor Standards Act and its subsequent amendments have created a schedule for increases in the Minimum Wage. Major adjustments to this schedule took place in years such as 1961 and 1966.

Employers are exempt from paying certain kinds of workers the minimum wage of $7.25 per hour. A lower minimum exists for these workers. For example, in 1997, a subminimum wage of $4.25 an hour was created for employees under 20 years of age during their first 90 days with an employer.

All above information in this section is based on the U.S. Department of Labor web page at http://www.dol.gov/ESA/minwage/chart.htm .

Although the nominal minimum wage has been increasing over time, the value of this wage in real terms has fluctuated due to inflation. http://oregonstate.edu/instruct/anth484/minwage.html suggests that the real value of the Federal Minimum Wage peaked in the late 1960s through the 1970s at a level that would be equivalent to more than $8.00 an hour in 2007 dollars, even though the minimum wage was between $1.00 and $3.00 in nominal terms during this time. By comparison, the 2006 minimum wage of $5.15 an hour is assessed as being lower in real terms than the Federal Minimum Wage had ever been since the increase to $0.75 in January 1950. Although, when adjusted for inflation, the 1933 rate of .30 per hour equates to $4.60 in 2008 dollars, however the actual minimum wage for 2008 is nearly double the inflation adjusted rate for 1933.[23]

See also

References

  1. ^ http://www.connectamarillo.com/news/money/story.aspx?id=393245
  2. ^ "US minimum wage to get $2 boost". May 25, 2007. BBC News.
  3. ^ FAQs
  4. ^ a b c d e f g h i j k l m Minimum Wage Laws in the States. From the United States Department of Labor, Employment Standards Administration - Wage and Hour Division. The source page has a clickable US map with current and projected state-by-state minimum wage rates for each state.
  5. ^ [1]
  6. ^ http://www.ica.state.az.us/minimumWage/index.html Arizona Department of Labor
  7. ^ Minimum wage
  8. ^ Office of Labor Standards Enforcement: Minimum Wage Ordinance (MWO)
  9. ^ Colorado Minimum Wage
  10. ^ Illinois Department of Labor - Minimum Wage Law
  11. ^ http://www.iowaworkforce.org/labor/wageandhourquestionsandanswers.pdf
  12. ^ "Sebelius signs bill to raise Kansas minimum wage to $7.25 an hour". Kansas City Business Journal. April 23, 2009. http://www.bizjournals.com/kansascity/stories/2009/04/20/daily43.html. 
  13. ^ Executive Office of Labor and Workforce Development (EOLWD)
  14. ^ Nevada's Minimum Wage
  15. ^ Santa Fe, NM - Official Website - Living Wage
  16. ^ "City's minimum pay requirement expands to small businesses; state minimum kicks in". By Julie Ann Grimm. December 31, 2007. The Santa Fe New Mexican.
  17. ^ Santa Fe Living Wage Network.
  18. ^ http://www.com.ohio.gov/laws/docs/laws_2009MinimumWage.pdf
  19. ^ Ohio Minimum Wage Won't Rise in 2010
  20. ^ Texas Minimum Wage Law Summary
  21. ^ DOL WHD: Wage Rate in American Samoa
  22. ^ a b DOI Office of Insular Affairs (OIA) -Statement of Nikolao I. Pula - February 28, 2008
  23. ^ http://www.westegg.com/inflation/

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