Minimum Wage by State: Updated Guide for Small Businesses
Last updated on December 9, 2024
Keeping up with minimum wage laws is essential for business owners and anyone tracking labor costs and compliance standards. Minimum wage regulations differ widely across the U.S. and even within certain states.
Here is a guide that provides an up-to-date look at minimum wages in each state and any upcoming or potential changes so you can stay informed and prepared.
Background: Minimum Wage History
The first federal minimum wage in the U.S., 25¢ per hour, was established in 1938 by the Fair Labor Standards Act (FLSA). It has gradually increased over time, reaching $7.25 in 2009—a rate that remains in effect today for much of the U.S. However, states and municipalities eventually began setting their own minimum wage standards. This movement towards localizing minimum wage has led to today’s expansive landscape of minimum wage laws, where each state—and sometimes each city—enacts minimum wage legislation.
What Does “Minimum Wage” Mean?
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Federal Minimum Wage
Since 2009, the federal minimum wage has been $7.25 per hour under the FLSA.
Minimum Wage by State
Here is a breakdown of minimum wages in each state and how they are set to change in 2025 if they will change at all.
Minimum Wage in California
California’s minimum wage is $16.00 per hour. It will increase to $16.50 per hour effective January 1, 2025. California’s Proposition 32, if passed, would increase the state’s minimum wage to $18.00 per hour for large employers and $17.00 per hour for small employers on January 1, 2025.
Minimum Wage in Florida
Florida’s minimum wage is $13.00 an hour. It is scheduled to increase by $1.00 every September 30th until it reaches $15.00 on September 30, 2026.
Minimum Wage in Illinois
Illinois’s minimum wage is $14.00 per hour. It will increase to $15.00 per hour on January 1, 2025.
Minimum Wage in Maryland
Maryland’s minimum wage is $15.00 per hour.
Minimum Wage in New York
The minimum wage in New York is $15.00 per hour. In New York City, Long Island, and Westchester County, it is $16.00 per hour. Effective January 1, 2025, these minimum wage rates will rise by 50¢ each.
Minimum Wage in Pennsylvania
The minimum wage in Pennsylvania is $7.25 per hour.
Minimum Wage in Texas
The minimum wage in Texas is $7.25 per hour.
Minimum Wage in Virginia
The minimum wage in Virginia is $12.00 per hour. It will increase to $12.41 per hour on January 1, 2025.
Minimum Wage in Washington D.C.
The minimum wage in the District of Columbia is $17.50 per hour.
Questions?
Have questions about minimum wage laws in your state or how they may impact your organization? Our team of business advisors is here to help. Contact Us.