Afterwards, the minimum wage will be re-adjusted by a Commonwealth Commissioner annually. While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the labor law data we present. Equal Pay Act of 1963 (Public Law 88-38)Equal pay provisions prohibit sex-based wage differentials between men and women employed in the same establishment who perform jobs requiring equal effort, skill, and responsibility. These provisions are enforced by the Equal Employment Opportunity Commission (EEOC).
States that have not adopted a state MW law
The minimum wage applies to covered nonexempt workers in the private sector and in federal, state and local governments. At the time, the law placed the minimum wage at just 25 cents per hour. $18.90 through June 30, 2025 (for mid-size employers with 15 to 500 employees).
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- Users are encouraged to consult the laws of particular States in determining whether the State’s minimum wage applies to a particular employment.
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- Cities with minimum wage rates higher than those of their states include New York City ($16.50 — $1 more than in New York State) and Portland, Maine ($15.50, $0.85 higher than the state).
- In cases like these, the law favors the rate most beneficial to the employee — in other words, the highest minimum wage.
- Employers may pay tipped employees a cash wage below the applicable minimum wage if the employee’s tips, in addition to the cash wage, equal the relevant minimum wage (often referred to as the tipped minimum wage).
- The State adopts the federal minimum wage rate by reference if the federal rate is greater than the State rate.
In response to the inertia at the federal level, over half of the US states and cities have taken the initiative to institute higher minimum wage rates in their jurisdictions in 2023. In cases minimum wage around the us like these, the law favors the rate most beneficial to the employee — in other words, the highest minimum wage. 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. While many states still follow the federal requirement of $7.25, it’s key to understand the exact wage requirements of the state(s) where you operate. Read what you need to know about every state’s minimum hourly wage policy.
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Analyses by the University of California, Berkeley, and the National Bureau of Economic Research found that pay increases didn’t cause job losses within low-wage industries but did lead to some reduced employment among teens and other low-skilled workers. Missouri’s minimum wage increase to $13.75 “would help a little,” she said. Plus, she said, “I’d be able to visit my mom more often.” Now, she rarely visits her mother, who lives about 25 miles away, because of the gasoline cost. The system calculates correct pay for all your employees based on minimum wage, hours worked, and overtime, automatically creating highly accurate electronic timesheets. These timesheets can then be exported https://www.bookstime.com/articles/wire-transfer-vs-electronic-transfer directly into your payroll system for processing. This long-standing two-tier system was eliminated in July 2024, where Nevada increased its minimum wage rate to $12.00 across the board for all employers, regardless of whether or not they offer health insurance.
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However, the measure also sparked pushback from some business groups concerned about the potential impact on employers. Critics warn that the wage hike could put additional financial strain on small businesses grappling with inflation and workforce challenges. “The January 1 increases show that the minimum wage continues to be a powerful tool for combating racial and gender wage disparities, supporting working families, and reducing poverty,” EPI said in its report. For comparison, an annual wage column is provided in international dollars, a hypothetical unit of currency calculated based on the purchasing power parity (PPP) of household final consumption expenditure. For calculating the annual wage, the lowest general minimum wage was used. Economist Dante DeAntonio of Moody’s Analytics said the minimum pay increases haven’t had a noticeable effect on inflation, in part, because the share of workers at or below the pay floors is small.
In Rhode Island, full-time students under the age of 19 who work for nonprofit religious, education, library, or community service organizations are entitled to a minimum wage rate of $11.70. In states with no minimum-wage law (Alabama, Louisiana, Mississippi, South Carolina, and Tennessee) or minimum wages below the federal minimum wage (Georgia and Wyoming), the federal minimum wage of $7.25 applies. 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. 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. This year, 23 states—and several counties and cities—will increase their minimum wages and, where applicable, tipped minimum wage.
- Others, particularly those with the lowest prelegislation wage rates, will be unable to find work.
- For example, in New Jersey, such exemptions include salespersons of motor vehicles and employees caring for children in the homes of their employers.
- State laws exempt some jobs or sectors from the minimum wage labor law.
- If by July 1, 2024, the Minimum Wage Review Commission decides the wage ought to be higher than $10.50, it will decree so.needs update The law also provided employees of local businesses not covered by the Fair Labor Standards Act of 1938 with protections.
- Jeion Ward, D-Hampton, would raise the state’s current minimum wage of $12.41 per hour to $13.50 per hour by January, 2026, and $15 by January 2027.
- With the increase, Arizona’s minimum wage is now more than double the federal minimum wage of $7.25, which has been in place since 2009.
In addition, some counties and cities within states may implement a higher minimum wage than the rest of their state. Sometimes this higher wage applies only to businesses that contract with the local government, while in other cases the higher minimum applies to all work. The FLSA does not provide wage payment collection procedures for an unearned revenue employee’s usual or promised wages or commissions in excess of those required by the FLSA. Information on the Youth Minimum Wage ProgramA minimum wage of not less than $4.25 may be paid to employees under age 20 for their first 90 consecutive calendar days of employment, as long as their employment does not displace other workers.
The FLSA does not provide wage payment or collection procedures for an employee’s usual or promised wages or commissions in excess of those required by the FLSA. However, some states do have laws under which such claims (sometimes including fringe benefits) may be filed. Ward, the bill’s sponsor, emphasized that the proposed wage increases align with the consumer price index and that if Virginia’s minimum wage ever exceeds the federal minimum, the commonwealth would adopt the higher rate.