States Minimum Wage: Everything You Need to Know
States minimum wage is the amount that each state within the U.S. provides its employees. In 2017, a total of 19 states implemented higher minimum wage rates.7 min read
States Minimum Wage
States minimum wage is the amount 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 living costs; 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.
Increases from 2016 to 2017
Several states have increased their hourly wage rates between 2016 and 2017, including the below states:
- Alaska increased from $9.75 to $9.80/hour.
- Arizona increased from $8.05 to $10.00/hour.
- Arkansas increased from $8.00 to $8.50/hour.
- California increased from $10.00 to $10.50/hour.
- Colorado increased from $8.31 to $9.30/hour.
- Connecticut increased from $9.60 to $10.10/hour.
- Florida increased from $8.05 to $8.10/hour.
- Hawaii increased from $8.50 to $9.25/hour.
- Maine increased from $7.50 to $9.00/hour.
- Maryland increased from $8.75 to $9.25/hour.
- Massachusetts increased from $10 to $11.00/hour.
- Michigan increased from $8.50 to $8.90/hour.
- Missouri increased from $7.65 to $7.70/hour.
- Montana increased from $8.05 to $8.15/hour.
- New Jersey increased from $8.39 to $8.44/hour.
- New York increased from $9.00 from $9.70/hour.
- Ohio increased from $8.10 to $8.15/hour.
- Oregon increased from $9.75 to $10.25/hour.
- South Dakota increased from $8.55 to $8.65/hour.
- Vermont increased from $9.60 to $10/hour.
- Washington increased from $9.47 to $11.00/hour.
Future Dates for Wage Increases
Many states have recently enacted new laws that will allow for automatic increases on an annual basis until such minimum wage rates hit a threshold amount by a specific year. As inflation increases, so too will the minimum wage rates. However, there are other important considerations and rules to keep in mind depending on the state you work in, the line of industry, and what type of duties are conducted while on the job.
- New York passed a law that would raise the minimum wage in NYC to $15/hour by the end of 2018.
- 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.
- 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 more 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 $10.20/hour or more.
- Tipped employees with federal contracts must be paid a cash wage of $6.80/hour or more.
- 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
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