Minimum Wage Laws by State: Your Complete Guide (2026)

The minimum wage is the lowest hourly rate an employer can legally pay workers. While federal law sets a floor, many states and cities have enacted higher minimum wages to reflect local costs of living. Understanding minimum wage laws is essential—millions of workers are paid less than they're legally owed each year.

If you're earning minimum wage or working in a tipped position, knowing your rights can help you ensure you're being paid fairly.

Federal Minimum Wage

Current Federal Minimum Wage

The Fair Labor Standards Act (FLSA) establishes the federal minimum wage:

• Federal minimum wage: $7.25 per hour
• Effective since: July 24, 2009
• Applies to: Most private and public sector employees

The federal minimum wage has not increased since 2009—the longest period without an increase since the minimum wage was established in 1938.

Who Is Covered by Federal Minimum Wage?

The FLSA covers employees who:

• Work for employers with annual gross sales of $500,000 or more, OR
• Are engaged in interstate commerce (producing goods for commerce, handling goods that have moved in commerce, or working on premises where commerce activities occur)
• Work for federal, state, or local government agencies
• Work for hospitals, schools, or businesses providing nursing or residential care

Most workers are covered. Even if your employer doesn't meet the $500,000 threshold, you may be individually covered if you regularly engage in interstate commerce (using phones, mail, or computers to communicate across state lines).

Federal Tipped Minimum Wage

Employers may pay tipped employees a lower cash wage if tips bring total compensation to at least the regular minimum wage:

• Federal tipped minimum (cash wage): $2.13 per hour
• Tip credit: $5.12 (the difference employers can take from tips)
• Total compensation must equal: $7.25 per hour or more

If tips don't bring you to minimum wage, your employer must make up the difference.

Federal Youth Minimum Wage

Employers can pay workers under 20 years old a reduced wage during their first 90 days:

• Youth minimum wage: $4.25 per hour
• Duration: First 90 consecutive calendar days of employment
• After 90 days: Regular minimum wage applies

State Minimum Wage Laws

Many states have enacted minimum wages higher than the federal rate. When state and federal minimum wages differ, you're entitled to the higher rate.

States with Higher Minimum Wages (2026)

$15.00 and Above:

• Washington: $16.66
• California: $16.50
• New York: $15.00-$16.50 (varies by region)
• Massachusetts: $15.00
• Connecticut: $15.69
• New Jersey: $15.49
• Maryland: $15.00
• Colorado: $14.81
• Arizona: $14.70
• Maine: $14.65
• Vermont: $14.01
• Rhode Island: $15.00
• Delaware: $15.00
• Illinois: $14.00

$10.00 - $14.99:

• Oregon: $14.70-$15.95 (varies by region)
• Florida: $13.00 (increasing annually)
• Michigan: $10.56
• Ohio: $10.70
• Missouri: $12.30
• Nevada: $12.00
• New Mexico: $12.00
• Minnesota: $10.85

Federal Minimum ($7.25):

• Georgia, Texas, Pennsylvania, Indiana, Iowa, Wisconsin, and others follow federal minimum wage

Below Federal (effectively $7.25):

• Georgia and Wyoming have state minimums below $7.25, but federal rate applies to covered employers

Local Minimum Wages

Many cities have enacted even higher local minimum wages:

• Seattle, WA: $19.97 (large employers)
• San Francisco, CA: $18.67
• Los Angeles, CA: $16.78
• Denver, CO: $18.81
• New York City: $16.00

Important: Some states prohibit local minimum wage laws (preemption). States like Texas, Georgia, and Florida do not allow cities to set higher minimum wages.

Tipped Employee Minimum Wage

Tipped employees have complex wage rules:

Federal Tipped Wage

• Cash wage: $2.13/hour minimum
• Tip credit: Up to $5.12/hour
• Total must equal: $7.25/hour or more

States with No Tip Credit (Full Minimum Required)

These states require tipped employees receive the full state minimum wage before tips:

• California - $16.50/hour + tips
• Washington - $16.66/hour + tips
• Oregon - $14.70-$15.95/hour + tips
• Nevada - $12.00/hour + tips
• Minnesota - $10.85/hour + tips
• Montana - $10.55/hour + tips
• Alaska - $11.91/hour + tips

States with Higher Tipped Minimum Wages

Many states require a higher tipped wage than the federal $2.13:

• New York: $10.65 (food service), $15.00 (other tipped workers)
• Massachusetts: $6.75
• Ohio: $5.35
• Michigan: $4.01
• Florida: $8.98
• Arizona: $11.70
• Colorado: $11.79

Tip Pooling Rules

Legal tip pooling:

• Among traditionally tipped employees (servers, bartenders, bussers)
• Distributes tips among workers who provide service

Illegal tip practices:

• Managers or supervisors taking tips from pool
• Including non-tipped employees (cooks, dishwashers) when taking tip credit
• Requiring employees to share tips with the house

Who Is Exempt from Minimum Wage?

Certain workers are exempt from federal minimum wage requirements:

Executive, Administrative, and Professional Exemptions

Salaried workers may be exempt if they:

• Earn at least $684/week ($35,568/year) salary
• Perform exempt duties (management, office work requiring discretion, professional work)

Other Exemptions

• Full-time students: May be paid 85% of minimum wage
• Student learners: Enrolled in vocational education programs
• Workers with disabilities: Under special certificates (subject to subminimum wage rules that are being phased out)
• Tipped employees: Subject to tip credit rules
• Farm workers on small farms: Some exemptions apply
• Seasonal amusement/recreational workers: In some situations
• Domestic workers: Live-in employees have different rules
• Newspaper deliverers under 18
• Babysitters on casual basis

Misclassification

Employers sometimes illegally misclassify workers to avoid minimum wage:

• Calling employees "independent contractors"
• Misclassifying non-exempt workers as exempt
• Paying salary to avoid overtime but not meeting exemption requirements

If you're told you're exempt or an independent contractor but you don't control how you work, you may be misclassified.

How to Know If You're Being Paid Below Minimum Wage

Calculate Your Effective Hourly Rate

For non-tipped workers:

1. Calculate total pay for the week
2. Divide by total hours worked
3. Compare to applicable minimum wage

Example:

• Weekly pay: $300
• Hours worked: 50
• Effective rate: $300 ÷ 50 = $6.00/hour
• This is below minimum wage

For Tipped Workers

1. Calculate cash wages paid
2. Add tips received
3. Total must equal at least minimum wage × hours worked

Example:

• Hours worked: 40
• Cash wages: $2.13 × 40 = $85.20
• Tips received: $200
• Total: $285.20
• Minimum required: $7.25 × 40 = $290
• Employer owes $4.80 to make up difference

Common Minimum Wage Violations

Watch for these signs:

• Paying flat rate below minimum: "We pay $50/day regardless of hours"
• Deducting for uniforms, cash shortages, or breakage that drops pay below minimum
• Not counting all hours: Off-the-clock work, travel time, training time
• Tip theft: Managers taking tips or requiring illegal tip pools
• Not making up tip shortfall: If tips don't reach minimum, employer must pay difference
• Misclassification: Calling you "exempt" or "independent contractor" improperly

How to File a Minimum Wage Complaint

1. Document Everything

Before filing, gather:

• Pay stubs showing hours and pay
• Work schedules (screenshot if electronic)
• Time records (your own notes if employer doesn't provide)
• Tip records if applicable
• Correspondence with employer about pay
• Witness information (coworkers with similar issues)

2. Calculate What You're Owed

Figure out:

• Applicable minimum wage (state/local may be higher than federal)
• Hours worked each week
• Amount paid
• Difference owed

3. File a Complaint

Federal (U.S. Department of Labor):

• Phone: 1-866-487-9243
• Website: dol.gov{rel="nofollow"}
• Online complaint: Available in many regions
• Statute of limitations: 2 years (3 years for willful violations)

State Labor Department:

• Many states have their own wage enforcement agencies
• May have longer statute of limitations
• May provide additional remedies

Private Attorney:

• Can file lawsuit on your behalf
• May recover additional damages
• Often work on contingency (no fee unless you win)
• Class actions possible if many workers affected

4. Remedies Available

If you win, you may receive:

• Back wages: The unpaid minimum wage difference
• Liquidated damages: Often double the back wages for willful violations
• Penalties: Some states impose additional penalties
• Attorney's fees: Employer may pay your legal costs
• Reinstatement: If you were fired for complaining

Minimum Wage Retaliation Protection

It is illegal for employers to retaliate against you for:

• Filing a minimum wage complaint
• Cooperating with an investigation
• Testifying in a hearing
• Discussing wages with coworkers
• Asking about your pay rate

Protected activities include filing complaints with DOL or state agencies, talking to an attorney, or simply asking your employer about your pay.

Retaliation includes:

• Firing or threatening to fire
• Demotion or pay reduction
• Schedule changes to punish you
• Hostile treatment
• Threats related to immigration status

If you experience retaliation, file a complaint with the Department of Labor or consult an employment attorney.

Frequently Asked Questions

Can my employer pay me below minimum wage during training?

Generally, no. Training time is considered work time and must be paid at least minimum wage. The only exception is the 90-day youth minimum wage for workers under 20.

Does minimum wage apply to small businesses?

It depends. The federal minimum wage applies to businesses with $500,000+ in annual sales or engaged in interstate commerce. However, most state minimum wage laws apply to all employers regardless of size.

Can my employer deduct money from my paycheck?

Employers can make certain deductions, but deductions cannot reduce your pay below minimum wage. Illegal deductions include:

• Cash register shortages
• Customer walkouts
• Broken equipment
• Uniform costs (if they drop pay below minimum)

What if I'm paid salary instead of hourly?

Salary doesn't automatically mean you're exempt from minimum wage. Divide your salary by hours worked—if the result is below minimum wage, you may have a claim.

Can I be fired for asking about minimum wage?

No. Asking about your pay rate, discussing wages with coworkers, or questioning whether you're being paid correctly are protected activities. Firing or disciplining you for these actions is illegal retaliation.

Do independent contractors have minimum wage rights?

True independent contractors are not covered by minimum wage laws. However, many workers are misclassified as independent contractors when they should be employees. If you don't control how you do your work, you may actually be an employee entitled to minimum wage.

Related Topics

• Wages and Hours - Overtime and other wage protections
• Workplace Retaliation - Protection from employer punishment
• Wage Theft - When employers steal wages

Legal Disclaimer

This guide provides general information about minimum wage laws and is not legal advice. Minimum wage rates change frequently, and local laws may provide additional protections. For advice about your specific situation, consult a licensed employment attorney or contact your state labor department.

Important Resources:

• U.S. Department of Labor Wage and Hour Division: https://www.dol.gov/agencies/whd | 1-866-487-9243
• State Labor Departments: Contact your state's department of labor for state-specific minimum wage information
• Find an Employment Attorney: Contact your state bar association for referrals

Act quickly. Minimum wage claims have statutes of limitations (typically 2-3 years). Contact an attorney or file a complaint as soon as you suspect a violation.