Minimum Wages by State: Everything You Need to Know
Minimum wages by state are the amounts that each state within the US provides its employees. In 2017 a total of 19 states implemented higher minimum wage rates.12 min read
Minimum Wages by State
Minimum wages by state are the amounts that each state within the U.S. provides its employees.
In 2017, a total of 19 states implemented higher minimum wage rates. Seven of those states, including Alaska, Florida, Missouri, Montana, New Jersey, Ohio and South Dakota, increased their wage rates based on the cost of living; five of those states, including Arizona, Arkansas, Colorado, Maine and Washington, increased their wages rates based on ballot initiatives; and the remaining seven state, including California, Connecticut, Hawaii, Massachusetts, Michigan, New York and Vermont, increased their minimum wages rates based on legislation.
Important Future Dates and Wages
- Arizona, Colorado, and Maine will increase their minimum wages to $12/hour by 2020
- Washington will increase its minimum wage rate to $13.50/hour by 2010
- New York passed a law that would raise the minimum wage in NYC to $15/hour by the end of 2018
- Washington, D.C. also enacted a law that would raise its minimum wage rate to $15/year by July 1, 2010.
- California Governor Jerry Brown signed a new law called the Senate Bill 3, which increases the minimum wage to $15/hour by January 1, 2022 for employers with 26 or more employees will the overall minimum wage rate will be increased to $15/hour by January 1, 2023.
- Governor Kenneth Mapp of the Virgin Islands signed Act 7856 into law, which creates a $8.35 minimum wage with increases to take place on June 1, 2017 and 2018 until the rate reaches $10.50 in March 2023.
- Oregon Governor Kate Brown signed into law SB 1532, which established a mandatory set of wage increases from July 1, 2016 through July 1, 2022.
- Colorado most recently made an 8-cent increase.
- South Dakota and Alaska most recently provided a 5-cent increase.
- Nevada will soon be announcing whether or not there will be a wage increase within the State.
- On January 1, 2016, Rhode Island increased its wages to $9.60.
- Delaware increased its wage minimum to $8.25 in 2015.
- Connecticut automatically increases its wage to ½ of one percent over the standard rate identified in the Fair Labor Standards Act (FLSA) if such rate equals or becomes higher than the state’s minimum rate.
- Maine also follows Connecticut’s automatic increase.
- Massachusetts automatically increases the rate to 10 cents above the federal minimum rate.
- The yearly sales threshold was reduced to $500,000 in Minnesota. For those Minnesota employers with annual sales of $500,000 or more, the minimum wage is $9.50/hour. For small employers, the minimum wage is $7.75/hour.
- In Missouri, retail employees with gross annual sales below $500,000 need not follow the minimum wage rate rule.
- In New York, the minimum wage rate differs throughout the state depending on the location and size of the company. As stated above, NYC has higher minimum wages due to the increased cost of living.
- In Oklahoma, employers with at least 10 full-time employees and employers with annual gross sales in excess of $100,000 are obligated to pay their employees with the minimum wage amounts for that state. However, those not falling into one of these two categories need not oblige by the minimum wage rate. However, keep in mind that if the employer is covered by the FLSA, it is subject to a minimum rate of $7.25. Therefore, those employers who may not necessarily fall into the Oklahoma minimum wage rate category may in fact be obligated to follow the rule under the FLSA.
- The FLSA applies to employers with 15 or more employees.
- In Puerto Rico, if an employer is not obligated to follow the rule under the FLSA, the company still must provide at least 70% of this amount, which would be $5.08.
- Missouri, Oklahoma, Texas, Puerto Rico, Utah, and Virginia exclude from coverage any employment that is subject to the FLSA.
- Hawaii, Kansas, and Michigan also exclude from coverage any employers that are subject to the FLS, if the state wage is higher than the federal wage.
- In Georgia, employees covered under the FLSA must receive the federal minimum wage, but those not required to abide by this law may be paid the minimum wage rate in Georgia.
- In Indiana, employees under the age of 20 must be paid $4.25/hour during the first 90 days of employment.
- In Iowa, employers can pay less than the minimum wage for an employee’s first 90 days of employment.
- On January 1, 2017, the U.S. Department of Labor (DOL) implemented legislation that states all employees with federal contracts are to be paid at least $10.20/hour.
- Tipped employees with federal contracts must be paid a cash wage of at least $6.80/hour.
- Tipped employees, i.e. waiters, can be paid less than minimum wage.
- Some states, including New York, Washington, Florida, California, Kentucky, and New Mexico, have different minimum wages within the state depending on geographic location and cost of living.
- Los Angeles and Chicago have higher minimum wages rates than those in California or Illinois due to the cost of living. The same holds true for NYC. Seattle is also implementing a wage increase that will be higher than other parts of Washington State.
- Washington State will see additional wage increases until it hits $13.50/hour by 2020.
- In Alaska, employees extra compensation from the state in the form of dividends from an oil-wealth fund. The most recent compensation provided from the fund was $1,022.
- In Vermont, the State intends to increase its hourly wage rate to $10.50 by 2018. However, advocacy groups have been calling for a wage hike of at least $15/hour.
Fair Minimum Wage Act of 2007
The Fair Minimum Wage Act of 2007 establishes minimum wages for those living within American Samoa. The law provides for increases in hourly rates until the rate hits $7.25/hour. The wage rates in American Samoa are set based on industry and not based on cost of living or inflation rates. Such hourly rates vary as follows:
- Bottling, brewing, and dairy production: $5.09
- Construction: $5.50
- Finance/Insurance: $5.89
- Fish Canning/Processing$5.16
- Garment Manufacturing Ind: $4.58
- Government Employees: $4.81
- Hotel.: $4.90
- Petroleum.: $5.75
- Printing: $5.40
- Private Hospitals/educational Institutions: $5.23
- Publishing: $5.53
- Retailing, Wholesaling, Warehousing: $5.00
- Ship Maintenance: $5.41
- Shipping and Transportation (Class A, which includes Stevedoring, Lighterage and Maritime Shipping Agency Activities): $5.99
- Shipping and Transportation (Class B, which includes Unloading Fish): $5.82
- Shipping and Transportation (Class C, which includes other activities than above): $5.78
- Tour and Travel.: $5.38
- Miscellaneous Activities: $4.60
Minimum Wages by State
- Georgia- $5.15 per hour
- Washington- $11.00 per hour
- Oregon- $10.25 per hour
- Idaho- $7.25 per hour
- Nevada- $8.25 per hour
- Wyoming- $5.15 per hour
- Utah- $7.25 per hour
- Arizona- $10.00 per hour
- North Dakota- $7.25 per hour
- South Dakota- $8.65 per hour
- Colorado- $9.30 per hour
- New Mexico- $7.50 per hour
- Nebraska- $9.00 per hour
- Kansas- $7.25 per hour
- Oklahoma-$7.25 per hour
- Texas-$7.25 per hour
- Minnesota-$9.50 per hour
- Iowa-$7.25 per hour
- Missouri-$7.70 per hour
- Arkansas-$8.50 per hour
- Louisiana-$7.25 per hour
- Wisconsin-$7.25 per hour
- Illinois-$8.25 per hour
- Tennessee-$7.25 per hour
- Mississippi-$7.25 per hour
- Michigan-$7.25 per hour
- Indiana-$7.25 per hour
- Alabama-$7.25 per hour
- Florida-$8.10 per hour
- Ohio-$8.15 per hour
- Kentucky-$7.25 per hour
- Maine-$9.00 per hour
- New Hampshire-$7.25 per hour
- Pennsylvania-$7.25 per hour
- West Virginia-$8.75 per hour
- Virginia-$7.25 per hour
- North Carolina- $7.25 per hour
- Georgia-$5.15 per hour
- Vermont-$10.00 per hour
- Hawaii-$9.25 per hour
- Alaska- $9.80 per hour
- Connecticut- $10.10 per hour
- District of Columbia- $11.50 per hour
If you need help learning more about minimum wages by state, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Stripe, and Twilio.
Michigan Labor Laws
Michigan labor laws are meant to protect both employers and employees alike.
Wage and Hour Laws in Michigan
Michigan pay laws are enforced and interpreted by the Department of Licensing and Regulatory Affairs' Wage and Hour Division. There are, however, now law that forces employers to pay wages due if there is a dispute between the two parties.
Wage and Hour Laws in Michigan: Deductions from Wages
If an employer wants to deduct wages for the company's benefit, the affected employee must first provide written consent. Common deduction causes could be from shortages of cash, damage or breakage, lost property belonging to the employer, mandatory uniforms or tools, and other things that are necessary for the job. However, the employer can't give any type of threat or coercion in an attempt to get consent from the employee.
An employer is not legally allowed to deduct or withhold an employee's wages from their paycheck except in the following situations:
- the employer is allowed or mandated to do so by law
- the employer is allowed or mandated due to a collective bargaining agreement
- the employer receives written consent for the withholding, and does so with coercing the employee
In some cases, an employer can take a withholding from a paycheck due to overpayment even without first receiving written consent. These situations include:
- overpayment due to a miscalculation, typing or clerical error, or misprint
- the mistake causing the overpayment was because of the employer, an employee, or a representative of either one
- when the employer gives the employee an explanation in writing as to the cause of the deduction. It should be received no less than one pay period prior to the deduction being take out of the employee's wages
- the deduction amount is less than 15% of the employee's gross wages for the affected pay period
- the deduction occurs after all deductions have been made that are required by law or due to a collective bargaining agreement
- the deduction doesn't decrease the employee's gross wages that is either greater than the federal minimum wage or the state minimum wage, whichever is less
- the deduction has to happen by six months after overpayment
- overpayment is from an error or misprint
- the employee is given the reasons for the withholding a minimum of one period before it occurs
- the deduction doesn't decrease the effective wage rate of the employee
Wage and Hour Laws in Michigan: Minimum Wage
Employers in Michigan are required to pay their employees the highest minimum wage out of the three potential laws: federal, state, and local. They must also follow the federal Fair Labor Standards Act (FLSA), which determines standards for wage and hours, such as minimum wage, overtime pay, and similar protections regarding wages.
In Michigan, recent minimum wage rates are as follows:
- $9.25 in 2018
- $8.90 in 2017
- $8.50 in 2016
The current federal minimum wage is just $7.25
Employers must pay the highest minimum wage applicable to employees, whether set by federal, state, or local law.
Wage and Hour Laws in Michigan: Overtime
Both the Fair Labor Standards Act (FLSA) and Michigan state law require Michigan employers to provide their employees with overtime pay. This applies to any hours worked in excess of 40 hours in a week at a rate of time and a half. Only nonexempt employees qualify for overtime pay. Exempt employees do not have eligibility status for overtime laws. Executive employees make a salary of at least $250 each week, primarily perform management duties, and has at least two employees under his or her supervision.
Anyone working in either retail or the service industry can get the executive exemption, unless more than 40% of their working hours are spent on non-executive responsibilities. In Michigan, administrative employees are also exempt from receiving overtime. An administrative employee must earn at least $250 each week as a salary and perform non-manual duties concerning the business's general operations or administrating some type of educational facility.
Professional employees in Michigan are also considered exempt and cannot receive overtime pay. Work requirements for this designation include the same minimum salary of $250 each week and duties surrounding either science or specialized professional knowledge. Working in an artistic field also qualifies you for this exemption, as does using your artistic skills in a job such as a teacher, tutor, or other type of instructor.
Salesmen are not exempted from overtime pay or minimum wage in Michigan. Nor or skilled workers in the computer systems, programming, and software engineering fields automatically qualify for exemption.
Elected public officials, however, are considered exempt in Michigan, as are their political appointees, unless they're part of the civil service system.
Another exemption category is anyone working for an amusement facility that is only open seven months or less each year. Similarly, farming and agricultural employees are also considered exempt. Subcategories in this industry include soil cultivation, dairy, horticultural commodities, livestock, bees, animals, or poultry, forestry and lumber, or even farm operations like delivering goods to the market.
In 2016, the U.S. Department of Labor created new federal regulations for overtime. The threshold for annual salary eligibility is now set to $47,476. This amounts to $913 earned weekly, which is much higher than the prior standard of $455 per week. As wages grow, these thresholds will most likely be updated once every three years. Doctors, teachers, and sales reps remain exempt from these changes in overtime from 2016.
Wage and Hour Laws in Michigan: Hours Worked (Compensable Time)
All Michigan employees must be paid by their employers for each hour they've worked. However, there's no distinction in the state's minimum wage law that discusses what counts as hours worked. Nor is there a definition for the workweek concerning how overtime and minimum wage are calculated. There's no requirement for how employers should consider waiting time by employees as hours worked.
There are also no guidelines on how to address on-call time, sleeping time, travel time, or time spent at lectures, trainings, or meetings as hours worked in relation to overtime and wages. Additionally, there is no rule surrounding whether or not an employer is required to pay an employee if s/he comes to work but there is no work actually performed. Employers are not required to pay for a minimum amount of hours if the employee is allowed to leave before their original shift is completed.
While the only requirement in Michigan is for employers to pay their employees for hours they've worked, federal standards from the FLSA regarding sleep, travel, on-call, waiting, and training time can all provide guidance on how Michigan employers should proceed. Still, there's no requirement that those federal laws be enforced.
Wage and Hour Laws in Michigan: Meals and Breaks
In Michigan, any employee who is younger than 18 years old must receive an uninterrupted break of 30 minutes during any shift lasting longer than five consecutive hours. Short breaks must also be paid, according to federal law. Any break that is between five and 20 minutes is included in the workday, meaning employers must pay their employees during this time.
For employers 18 years or older in Michigan, there is no legal requirement regarding breaks of any kind, whether they're rest periods or meals of any length of time.
In order to not pay an employee for a break period, however, the employee must be complete relieved of his or her work-related responsibilities.
Michigan Wage Payment Laws: Frequency
Michigan employers have flexibility in how often they can pay their employees, including once a month, twice a month, bi-weekly, weekly, or even more often. There should, however, be designated paydays from the employer so employees know when to expect a paycheck.
For semi-monthly pay periods (which equates to twice a month), the employer must provide compensation for any wages that were earned during the first 15 days on or before the next month's first day. Concerning wages earned between the 16th and the month's final day, the employee must receive payment by the 15th of the next month.
For weekly or bi-weekly paydays, the employer is required to pay for hours worked within two weeks of the pay period's end from the time the wages were actually earned. For monthly paychecks, the employee should receive payment by the first day of the month directly after the month the wages were earned in.
Michigan Wage Payment Laws: Manner of Payment
There are several payment methods an employer can utilize to pay their employees in Michigan, including:
- check that can be cashed at a financial institution without paying a fee
- direct deposit into an employee's bank account (after receiving written consent from the employee)
- stored-value debit cards, paycards, or payroll cards
Time Off Work: Leave Laws
There are no requirements in Michigan requiring that employers provide any kind of paid leave, although lots of employers still provide paid leave benefits to their employees. These include vacation days, sick days, holidays, or personal paid time off days. One exception to the lack of Michigan law is the U.S. Family and Medical Leave Act, or FMLA.
This law from the federal government states that any employer with 50 or more employers must provide qualifying employees with as much as 12 weeks of unpaid days each year. The time can be used to treat an illness, provide care to a family member, or bond with a new child. Employees must still receive their health benefits from their employer during this time.
Any employee taking FMLA leave mush also be able to return to his or her previous role, or a similar one in terms of work, pay, and benefits.
While some states add extra laws to the federal family and medical leave, Michigan does not have any additional legislation. If an employer creates its own leave benefits, it must uphold those policies created for the company or for an employee's individual contract. This includes an employer's ability to not pay out any accrued leave for vacation when an employee separates from the company. As long as the employee has agreed to the policy or accepted the contract, this practice is legal according to Michigan labor laws.
If you need help learning more about Michigan labor laws, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Stripe, and Twilio.