The state minimum wage law applies only to employers with https://www.bookstime.com/ six or more employees and to state agencies. The Connecticut minimum wage is adjusted annually based on a set formula. Effective September 2025, Florida’s minimum wage is $14 per hour. This is also part of a gradual increase of $1 per year that will lead to a $15 minimum wage rate in September 2026. Illinois workers who regularly earn tips saw an increase in minimum wage to $8.40 per hour and must still earn minimum wage after receiving tips. At the start of 2024, New York increased its minimum wage from $14.20 to $16.
- The average state minimum wage in 2025 is $11.18, up from $10.69 in 2024, $10.47 in 2023, and $9.85 in 2022.
- The minimum wage applies to covered nonexempt workers in the private sector and in federal, state and local governments.
- Also falls into this category with its minimum wage of $17 per hour.
- Many states increased their minimum wages in 2023 to help employees cope with the high cost of living and inflation.
- There’s an ongoing debate about raising the federal rate beyond $7.25.
Minimum Wage: Federal vs. State vs. City
But if the federal, state, and city minimum wages differ, can you cherry-pick the rate to apply? The Virginia minimum minimum wage around the us wage is adjusted annually based on a set formula. Employers with ten or more full time employees at any one location or employers with annual gross sales over $100,000 irrespective of number of full time employees.
Ready to Conquer 2025 Wage Updates? Here’s Your Game Plan
EPI pointed to Ohio, a state that last passed a significant increase to its minimum wage in 2007, and that will see it increase this year from $10.45 to $10.70 because what are retained earnings of an inflation adjustment. Research shows that a full-time minimum wage worker earning $7.25 an hour makes just $20 more than the poverty guidelines for a single-person household. Add kids or needing to care for other family members, and that worker falls below poverty levels. Five states are bumping up the statewide minimum wage through previously adopted legislation, and two states — Nebraska and Montana — are making changes after voters passed ballot measures. For 2025, numerous states have implemented scheduled increases or CPI-based adjustments to better align with economic demands. Local variations, such as those in Chicago or Cook County, can further complicate compliance.
States that have not adopted a state MW law
Meanwhile, five states have no state minimum wage laws, so they automatically follow the federal rate. They include Alabama, Louisiana, Mississippi, South Carolina, and Tennessee. Washington has the highest minimum wage of any state in the country. The Golden State follows with a minimum wage rate of $15.50 per hour.
Notably, several states have passed measures that will push wages to or above $15 per hour, ensuring a growing number of workers benefit from these increases. Notably, if Washington, D.C., were considered a state, it would have claimed the top spot with an impressive $17 per hour. These states showcase a commitment to setting high standards for minimum wages, reflecting a broader movement toward equitable compensation for workers. There are exclusions to the states minimum wage law, including students in work-based learning programs and persons with disabilities who are unable to engage in competitive employment.
