Paycom Software Inc.
11/27/2024 | Press release | Distributed by Public on 11/27/2024 16:47
Your 2025 Guide to Every State’s Minimum Wage
This is a state minimum wage update and does not cover any updates to specific local, municipal or industry minimum wages or rates for contractors or tipped workers. Please consult legal counsel for guidance on how to stay compliant with all the minimum wage laws where your business operates.
Minimum wages can change periodically, depending on various state and federal laws. While some states follow federal guidance, others set their own requirements. Understanding the rules affecting the state(s) you operate in is key to compliance.
What is the federal minimum wage?
The current federal minimum wage is $7.25 per hour. States with their own hourly wage requirements may exceed this rate, but employers specifically covered by the Fair Labor Standards Act (FLSA) must adhere to the federal minimum wage.
What legislation established the federal minimum wage?
President Franklin D. Roosevelt signed the FLSA into law in 1938. At the time, the law placed the minimum wage at just 25 cents per hour. The law also created standards for child labor and overtime pay.
How often does the federal minimum wage rise?
While the FLSA is an evolving document, it doesn't automatically increase the minimum wage. For example, the current rate was enacted in 2009 - almost 15 years ago. The president must sign any change to the federal minimum wage into law.
But that doesn't stop certain states from forming their own standards.
What is the minimum wage in each state for 2025?
Don't get blindsided by an unexpected compliance change. To make it easier to identify updates, we've provided a list of 2025 and 2024's hourly minimum wages by state. Keep in mind this list doesn't consider every city or municipality with its own minimum wage requirement.
Understand these hourly minimum wage rates for any of the states where your business operates:
| State | 2025 Minimum Hourly Wage | 2024 Minimum Hourly Wage |
| Alabama | $7.25 | $7.25 |
| Alaska | $11.91* | $11.73 |
| Arizona | $14.70* | $14.35 |
| Arkansas | $11.00 | $11.00 |
| California | $16.50 | $16.00 |
| Colorado | $14.81* | $14.42 |
| Connecticut | $16.35* | $15.69 |
| Delaware | $15.00 | $13.25 |
| Florida | $13.00* | $13.00 |
| Georgia | $7.25 | $7.25 |
| Hawaii | $14.00 | $14.00 |
| Idaho | $7.25 | $7.25 |
| Illinois | $15.00 | $14.00 |
| Indiana | $7.25 | $7.25 |
| Iowa | $7.25 | $7.25 |
| Kansas | $7.25 | $7.25 |
| Kentucky | $7.25 | $7.25 |
| Louisiana | $7.25 | $7.25 |
| Maine | $14.65* | $14.15 |
| Maryland | $15.00 | $15.00 |
| Massachusetts | $15.00 | $15.00 |
| Michigan | $10.56† | $10.33 |
| Minnesota | $11.13* | $8.85 for small employers and $10.85 for large employers.‡ |
| Mississippi | $7.25 | $7.25 |
| Missouri | $13.75* | $12.30 |
| Montana | $10.55*¶ | $10.30 |
| Nebraska | $13.50* | $12.00 |
| Nevada | $12.00* | $12.00 |
| New Hampshire | $7.25 | $7.25 |
| New Jersey | $15.49 for most employers; $14.53 for seasonal and small employers who have less than six workers.* | $15.13 for most employers; $13.73 for seasonal and small employers who have less than six workers. |
| New Mexico | $12.00 | $12.00 |
| New York | $16.50 for New York City, Long Island and Westchester County; $15.50 for the rest of the state.* | $16.00 for New York City, Long Island and Westchester; $15.00 for the rest of the state. |
| North Carolina | $7.25 | $7.25 |
| North Dakota | $7.25 | $7.25 |
| Ohio | $10.70 for employers with annual gross receipts of $394,000 or more. $10.70 per hour for nontipped employees and $5.35 per hour for tipped employees.* | $10.45 for employers with annual gross receipts of $385,000 or more. Minimum wage of $7.50 for employers with annual gross receipts under $385,000. |
| Oklahoma | $7.25 | $7.25 |
| Oregon | Basic minimum wage is $14.70, $15.95 for Portland Metro Area and $13.70 for non-urban counties.* | Basic minimum wage is $14.70, $15.95 for Portland Metro Area and $13.70 for non-urban counties. |
| Pennsylvania | $7.25 | $7.25 |
| Rhode Island | $15.00 | $14.00 |
| South Carolina | $7.25 | $7.25 |
| South Dakota | $11.50* | $11.20 |
| Tennessee | $7.25 | $7.25 |
| Texas | $7.25 | $7.25 |
| Utah | $7.25 | $7.25 |
| Vermont | $14.01* | $13.67 |
| Virginia | $12.41* | $12.00 |
| Washington, D.C. | $17.50* | $17.50 |
| Washington | $16.66* | $16.28 |
| West Virginia | $8.75 | $8.75 |
| Wisconsin | $7.25 | $7.25 |
| Wyoming | $7.25 | $7.25 |
* Minimum wage is adjusted annually based on the Consumer Price Index.
† Michigan's minimum wage will increase to $12.48 effective Feb. 21, 2025.
‡ Minnesota defines "large employers" as businesses with $500K or more in gross revenue.
¶ A business not covered by the federal Fair Labor Standards Act whose gross annual sales are $110,000 or less may pay $4 per hour. However, if an individual employee is producing or moving goods between states or otherwise covered by the federal Fair Labor Standards Act, that employee must be paid the greater of either the federal minimum wage or Montana's minimum wage.
Which states are increasing their minimum wage in 2025?
Twenty-one states are experiencing a minimum wage increase in 2025, including:
| Alaska | Arizona | California |
| Colorado | Connecticut | Delaware |
| Illinois | Maine | Michigan |
| Minnesota | Missouri | Montana |
| Nebraska | New Jersey | New York |
| Ohio | Rhode Island | South Dakota |
| Vermont | Virginia | Washington |
California fast-food minimum wage
Fast-food workers in California are covered under a minimum wage requirement of $20 per hour. This wage increase applies only to employers with 60 or more establishments nationwide. This means that even franchises with a small presence in California will still need to comply.
The California Fast Food Council has the authority to raise the fast-food minimum wage effective Jan. 1, 2025, but so far has not acted to do so.
Washington D.C. minimum wage
The minimum wage for Washington, D.C. is $17.50, effective July 1, 2024.
Which state has the highest minimum wage?
While Washington is technically the state with the highest hourly minimum wage at $16.66, Washington, D.C. has the highest rate across the country: $17.50!
Which states have minimum wages of $15.00 or more?
Ten states and Washington, D.C. have minimum wages of $15.00 or more:
- California
- Connecticut
- Delaware
- Illinois
- Maryland
- Massachusetts
- New Jersey
- New York
- Rhode Island
- Washington
What is the new minimum wage for federal contractors?
On Jan. 1, 2025, Executive Order 14026 will raise the minimum wage rate for federal contractors to $17.75 per hour, according to the DOL notice published on Sept. 30, 2024.
State minimum wage compliance assistance
To ensure compliance and avoid penalties, employers must understand and comply with both federal and state minimum wage laws. Paycom's time and labor management tools help you capture employees' hours worked, optimize scheduling, track labor dollars, automate time-off request approvals and more. Our minimum wage warning feature alerts you if an employee is earning less than the minimum wage and displays the amount needed to bring the employee's pay up to compliance. Our single software also monitors legislative changes that would affect overtime state by state and updates accordingly to help keep you in compliance, no matter your head count or locations.
Minimum EAP salary requirements
The U.S. Department of Labor's regulations require executive, administrative and professional (EAP) employees to be paid at least:
- $844 per week ($43,888 per year) effective July 1, 2024
- $1,128 per week ($58,656 per year) beginning on Jan. 1, 2025
FAQ
What is the minimum wage for tipped employees?
The minimum wage for tipped employees varies by state.
What are some minimum wage exemptions?
Some minimum wage exceptions apply under specific circumstances to workers with disabilities, full-time students, youth under age 20 in their first 90 consecutive calendar days of employment, tipped employees and student learners.
How often does the federal minimum wage increase?
The federal minimum wage last increased in 2009.
To whom does the minimum wage apply?
The minimum wage applies to covered nonexempt workers in the private sector and in federal, state and local governments.
What is the difference between state minimum wage and federal minimum wage?
If a state's minimum wage is less than the federal minimum wage of $7.25, employers must pay the federal rate. If the state minimum wage is more than the federal, employers must pay the state rate.
Adhering to federal and state minimum hourly wage guidance helps you remain compliant and ensures your success. And a powerful government and compliance tool helps you stay on top of new laws and regulations that affect your business.
Download our 2025 HR and Payroll Calendar for easy access to the dates all HR and payroll managers should know and subscribe to our newsletter to stay up to date with federal legislation.