State Minimum Wages: An Overview
David H. Bradley
Specialist in Labor Economics
November 18, 2014
Congressional Research Service
7-5700
www.crs.gov
R43792

State Minimum Wages: An Overview

Summary
The Fair Labor Standards Act (FLSA), enacted in 1938, is the federal legislation that establishes
the general minimum wage that must be paid to all covered workers. While the FLSA mandates
broad minimum wage coverage, states have the option of establishing minimum wage rates that
are different from those set in it. Under the provisions of the FLSA, an individual is generally
covered by the higher of the state or federal minimum wage.
As of January 1, 2015, 29 states and the District of Columbia will have minimum wage rates
above the federal rate of $7.25 per hour, with rates ranging from $0.25 to $2.25 above the federal
rate. Two states will have minimum wage rates below the federal rate and five states have no state
minimum wage requirement. The remaining 14 states have minimum wage rates equal to the
federal rate.
In any given year, the exact number of states with a minimum wage rate above the federal rate
may vary, depending on the interaction between the federal rate and the mechanisms in place to
adjust the state minimum wage. Adjusting minimum wage rates is typically done in one of two
ways: (1) 10 states have legislatively scheduled rate increases that may include one or several
increments; (2) 11 states use a measure of inflation to index the value of the minimum wage to
the general change in prices. In addition to the 11 states currently using an inflation adjustment,
four states and DC have chosen a hybrid approach that provides a series of scheduled rate
increases, followed by inflation indexation for future minimum wage changes. Thus, a total of 15
states and DC currently, or will in a future year, index state minimum wage rates to a measure of
inflation. The remaining 25 states, some of which have minimum wage rates above the federal
rate, do not have an adjustment mechanism in place.
Because the federal and state minimum wage rates change at various times and in various
increments, the share of the labor force for which the federal rate is the binding wage floor has
changed over time. Since 1981, there have been three series of increases in the federal minimum
wage rate—1990-1991, 1996-1997, and 2007-2009. During that same period, there have been
numerous changes in state minimum wage policies. As a result of those interactions, the share of
the U.S. civilian labor force for which the federal minimum wage is the floor has fluctuated but
generally declined, and is about 39% as of the beginning of 2015.

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State Minimum Wages: An Overview

Contents
Introduction ...................................................................................................................................... 1
FLSA Minimum Wage Coverage ..................................................................................................... 1
Enterprise Coverage .................................................................................................................. 2
Individual Coverage .................................................................................................................. 2
Minimum Wage Policies in the States ............................................................................................. 2
Rates and Mechanisms of Adjustment ............................................................................................. 3
Rates .......................................................................................................................................... 3
Mechanisms for Future Adjustments ......................................................................................... 5
Legislatively Scheduled Increases....................................................................................... 5
Indexing to Inflation ............................................................................................................ 5
Reference to the Federal Rate ............................................................................................. 6
Trends in State Minimum Wages ..................................................................................................... 7

Figures
Figure 1. State Minimum Wage Rates ............................................................................................. 4
Figure 2. The Share of the U.S. Labor Force Residing in States in Which the Federal
Minimum Wage is Higher Than the State Minimum Wage .......................................................... 9

Tables
Table 1. Summary of States with Enacted Minimum Wage Rates Above $7.25 ............................. 6
Table A-1. Selected State Minimum Wage Policies ....................................................................... 12

Appendixes
Appendix. Selected Characteristics of State Minimum Wage Policies .......................................... 11

Contacts
Author Contact Information........................................................................................................... 34
Acknowledgments ......................................................................................................................... 34

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State Minimum Wages: An Overview

Introduction
The Fair Labor Standards Act (FLSA), enacted in 1938, is the federal legislation that establishes
the general minimum wage that must be paid to all covered workers.1 The FLSA mandates broad
minimum wage coverage. It also specifies certain categories of workers who are not covered by
general FLSA wage standards, such as workers with disabilities or certain youth workers.
In 1938, the FLSA established a minimum wage of $0.25 per hour. The minimum wage
provisions of the FLSA have been amended numerous times since then, typically to expand
coverage or raise the wage rate. Since its establishment, the minimum wage rate has been raised
22 separate times.2 The most recent change was enacted through P.L. 110-28 in 2007, which
increased the minimum wage from $5.15 per hour to its current rate of $7.25 per hour in three
steps (the final step occurring in 2009).
States generally have three options in setting their minimum wage policies (1) they can set their
own minimum wage provisions that differ from those in the FLSA, (2) they can explicitly tie their
minimum wage provisions to the FLSA, or (3) they can include no specific minimum wage
provisions in state law.
This report begins with a brief discussion of FLSA minimum wage coverage. It then provides a
summary of state minimum wage laws, followed by an examination of rates and mechanisms of
adjustments in states with minimum wage levels above the FLSA rate (Table 1 provides summary
data). Next, the report discusses the interaction of federal and state minimum wages over time,
and finally, the Appendix provides detailed information on the major components of minimum
wage policies in all 50 states and DC).
It is important to note that the state policies covered in this report include currently effective
policies and policies enacted with an effective date on or before January 1, 2015. Several states
enacted legislation in 2014 with an effective date by the beginning of 2015. As such, the
description and analysis in the report reflects the effects of legislative and ballot outcomes in
2014.
FLSA Minimum Wage Coverage
The FLSA extends two types of minimum wage coverage to individuals: “enterprise coverage”
and “individual coverage.”3 An individual is covered if they meet the criteria for either category.

1 In addition, the FLSA provides for overtime pay and child labor protections. For a broader overview of the minimum
wage, see CRS Report R43089, The Federal Minimum Wage: In Brief, by David H. Bradley.
2 Although the rate has increased 22 separate times, this does not mean that there have been 22 separately enacted laws
to increase the minimum wage. In some cases, one law contained multiple increases in the minimum wage rate that
were phased in over time.
3 29 U.S.C. §206(a). State laws generally cover and exempt similar types of workers as those covered and exempted in
the FLSA. While there are some cases in which state laws seem to cover different types or classes of workers than the
FLSA, these coverage differentials appear to be relatively minor.
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State Minimum Wages: An Overview

Enterprise Coverage
To be covered by the FLSA at the enterprise or business level, an enterprise must have at least
two employees and annual sales or “business done” of at least $500,000. Annual sales or business
done includes all business activities that can be measured in dollars. Thus, for example, retailers
are covered by the FLSA if their annual sales are at least $500,000.4 In non-sales cases, a measure
other than sales must be used to determine business done. For example, for enterprises engaged in
leasing property, gross amounts paid by tenants for property rental will be considered business
done for purposes of determining enterprise coverage.
In addition, regardless of the dollar volume of business, the FLSA applies to hospitals or other
institutions primarily providing medical or nursing care for residents; schools (preschool through
institutions of higher education); and federal, state, and local governments.
Thus, regardless of how enterprise coverage is determined (by business done or by specified
institutional type), all employees of a covered enterprise are considered to be covered by the
FLSA.
Individual Coverage
Although an enterprise may not be subject to minimum wage requirements if it has less than
$500,000 in annual sales or business done, employees of the enterprise may be covered if they are
individually engaged in interstate commerce or in the production of goods for interstate
commerce. To be engaged in interstate commerce—the definition of which is fairly broad—
employees must produce goods (or have indirect input to the production of those goods) that will
be shipped out of the state of production, travel to other states for work, make phone calls or send
emails to persons in other states, handle records that are involved in interstate transactions, or
provide services to buildings (e.g., janitorial work) in which goods are produced for shipment
outside of the state.5
While individual coverage is broad under the FLSA, there are also specific exemptions from the
federal rate, including individuals with disabilities; youth workers; tipped workers; and executive,
administrative, and professional workers, among others.6
Minimum Wage Policies in the States
State policymakers may also choose to set labor standards that are different from federal statutes.
The FLSA establishes that if a state enacts minimum wage, overtime, or child labor laws more
protective of employees than those provided in the FLSA, then state law applies. In the case of
minimum wages, this means FLSA-covered workers are entitled to the higher state minimum

4 The $500,000 threshold refers to the annual gross volume of sales. It is not a measure of net revenue or profits.
5 U.S. Department of Labor, Coverage Under the Fair Labor Standards Act, available at http://www.dol.gov/whd/regs/
compliance/whdfs14.pdf. (Hereinafter cited as DOL, Coverage Under the Fair Labor Standards Act.) These examples
are not exhaustive but are meant to illustrate the relatively broad range of activities comprising “interstate commerce.”
6 DOL provides a series of fact sheets on the various individual minimum wage exemptions in the FLSA. See
http://www.dol.gov/whd/fact-sheets-index.htm for individual fact sheets.
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State Minimum Wages: An Overview

wage in those states with rates above the federal minimum. On the other hand, FLSA-covered
workers would receive the FLSA minimum wage in states that have set minimum wages lower
than the federal rate. Given the generally broad minimum wage coverage of the FLSA, it is likely
that most workers in states with minimum wages below the federal rate are covered by the FLSA
rate.
As of January 1, 2015, the range of state minimum wage rates is as follows:
• 29 states and the District of Columbia have enacted minimum wage rates above
the federal rate of $7.25 per hour;
• two states have minimum wage rates below the federal rate;
• five states have no state minimum wage requirement; and
• the remaining 14 states have minimum wage rates equal to the federal rate.7
In the states with no minimum wage requirements or wages lower than the federal minimum
wage, only individuals who are not covered by the FLSA are subject to those lower rates.
The Appendix provides detailed information on state minimum wage policy in all 50 states and
DC. Specifically, it includes each state’s rate; the year and method of enactment; the mechanism,
if any, used to adjust the minimum wage; the legislation authorizing the state minimum wage; and
the relevant legislative language regarding the rate and mechanism of adjustment.
The remainder of this report focuses on states with minimum wages above the federal rate.
Rates and Mechanisms of Adjustment
In states with minimum wage rates above the federal rate, variation occurs mainly across two
dimensions: the rate and the mechanism of adjustment to the rate. This section (including data in
Table 1) summarizes these two dimensions for the states with rates currently above the federal
minimum. Current rates range from $0.25 to $2.25 above the federal rate, with a majority of these
states using some sort of inflation measure to index the state minimum wage.
Rates
In the 29 states and DC with minimum wage rates above the federal rate, as of January 1, 2015,
minimum hourly rates will range from $7.50 per hour in Arkansas, Maine, and New Mexico to
$9.47 per hour in Washington state and $9.50 in the District of Columbia. Of the states with
minimum wage rates above $7.25,
• the most frequently occurring rate is $8.00, which is the minimum wage in four
states;

7 U.S. Department of Labor, Wage and Hour Division, Minimum Wage Laws in the States, http://www.dol.gov/whd/
minwage/america.htm and state web sites. See Appendix for details and sources.
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• the plurality of these states (eight) have rates between $8.01 and $8.25 per hour;
and
• 11 states and DC have rates at least $1.00 per hour above the federal rate ($8.25
or higher).
Figure 1 shows the geographic and rate dispersion of state minimum wages. In terms of
coverage, a majority of the civilian labor force is in states with a minimum wage rate above the
federal rate of $7.25. Specifically, the 29 states and DC with minimum wage rates above $7.25
represent about 61% of the total civilian labor force, which means the federal rate is the wage
floor in states representing 39% of the labor force.8
Figure 1. State Minimum Wage Rates
As of January 1, 2015

Source: CRS analysis of U.S. Department of Labor data.

8 This figure is derived from the civilian labor force estimates from the Bureau of Labor Statistics (BLS) Local Area
Unemployment Statistics (LAUS) program. Specifically, the August 2014 seasonally adjusted total civilian labor force
in each state was totaled for the 29 states and D.C. with a minimum wage higher than the federal minimum wage. This
total was then divided by the August 2014 seasonally adjusted civilian labor force for all states and D.C.
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Mechanisms for Future Adjustments
In any given year, the exact number of states with a minimum wage rate above the federal rate
may vary, depending on what mechanism is in place to adjust the state minimum wage. Some
states specifically set rates above the federal rate. Other states have rates above the federal
minimum wage because the state minimum wage rate is indexed to a measure of inflation or is
increased in legislatively scheduled increments, and thus the state rate changes even if the federal
minimum wage stays unchanged.
Below are the two main approaches to regulating the adjustment of state minimum wage rates in
states with rates above the federal minimum: legislatively scheduled increases and indexing to
inflation.9 In this section states are counted by the primary method of adjustment. While most
states use only one of these methods, some states combine a series of scheduled increases
followed by indexing the state rate to a measure of inflation. In these cases, states are counted as
“indexing to inflation,” as that is the long-term mechanism of adjustment in place.
Legislatively Scheduled Increases
If a state adopts a minimum wage higher than the federal rate, the state legislature may specify a
single rate in the enacting legislation and then choose not to address future rates. In these cases,
the only mechanism for future rate changes is future legislative action. Alternatively, a state may
specify future rates in legislation through a given date. New York, for example, set a rate of $8.00
per hour in 2014, $8.75 in 2015, and $9.00 in 2016. After the final increase, the rate will remain
at $9.00 per hour until further legislative action. This is the same approach taken in the most
recent federal minimum wage increase (P.L. 110-28), which increased the minimum wage from
$5.15 an hour in 2007 to $7.25 per hour in 2009 in three phases. This mechanism is currently
used in 10 states.
Indexing to Inflation
If a minimum wage rate is established as a fixed amount and not increased, its value will erode
over time due to inflation. For this reason, several states have attempted to maintain the value of
the minimum wage over time by indexing the rate to some measure of inflation. This mechanism
provides for automatic changes in the minimum wage over time and does not require legislative
action to make annual adjustments.
Of the 11 states currently using an inflation adjustment, six use the Consumer Price Index for All
Urban Consumers (CPI-U) and five use the Consumer Price Index for Urban Wage Earners and
Clerical Workers (CPI-W).10
Four states and DC have chosen a hybrid approach that provides a series of scheduled rate
increases, followed by inflation indexation for future minimum wage changes. Specifically,

9 States may also not provide any mechanism for future minimum wage changes. Of the 29 states and D.C. with
minimum wages above the federal rate as of January 1, 2015, four—Illinois, Maine, New Mexico, and Rhode Island—
do not provide a mechanism for future rate adjustment. Table A-1 provides details.
10 For additional information about CPI, see http://www.bls.gov/cpi/cpiovrvw.htm.
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Alaska, Michigan, Vermont, and DC will index the state rate to CPI-U and Minnesota will use a
non-CPI measure.11
Thus, a total of 15 states and DC currently, or will in a future year, index state minimum wage
rates to a measure of inflation.
Reference to the Federal Rate
While scheduled increases and indexation are the two main ways that states adjust their minimum
wage rates, a few states also add a reference to the federal minimum wage rate as a possible
mechanism of adjustment. Thus any time the federal rate changes, the state rate may change.12
Currently, Alaska, Connecticut, DC, and Massachusetts use this federal reference to supplement
their primary mechanisms of adjusting state minimum wage rates.
• In Alaska, following scheduled increases in 2015 and 2016, the state minimum
wage rate will be indexed to the CPI-U for Anchorage. However, the state
minimum wage must be at least $1.00 per hour higher than the federal rate. So it
is possible that a federal wage increase could trigger an increase in the Alaska
minimum wage but the main mechanisms are still the scheduled increases and the
indexation to inflation.
• Although Connecticut law includes scheduled rate increases in the minimum
wage through 2017, the state rate must exceed the federal minimum wage rate by
0.5% if the federal rate becomes greater than or equal to the state rate.
• Until 2017, DC’s minimum wage rate is the higher of the level required by DC
statute or the federal rate plus $1.00. Starting in 2017, the DC minimum wage
will be indexed to inflation and the reference to the federal rate will no longer be
in effect.
• While Massachusetts law includes scheduled rate increases in the minimum wage
through 2017, the law also requires that the state rate must be at least $0.50
above federal minimum wage rate.
Table 1. Summary of States with Enacted Minimum Wage Rates Above $7.25
As of January 1, 2015
Adjustment
State Rate
Mechanism Next
Adjustment
Alaska
$8.75
Inflation (Scheduled)
1-1-16 ($9.75)
Arizona $8.05
Inflation
1-1-16
(CPI-U)
Arkansas $7.50
Scheduled
1-1-16
($8.00)
California $9.00
Scheduled
1-1-16
($10.00)

11 Following a series of scheduled increases, the Minnesota minimum wage rate will be indexed using the implicit price
deflator for personal consumption expenditures, beginning in 2018.
12 The mechanisms discussed here use the federal rate plus an add-on to set a state rate above the federal rate. Many
states set the state rate to the federal rate, so that the state rate automatically changes when the federal rate changes.

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Adjustment
State Rate
Mechanism Next
Adjustment
Colorado $8.23
Inflation
1-1-16
(CPI-U)
Connecticut
$9.15
Scheduled (Federal)
1-1-16 ($9.60)
Delaware $7.75
Scheduled
6-1-15
($8.25)
District of Columbia
$9.50
Inflation (Scheduled)
7-1-15 ($10.15)
Florida $8.05
Inflation
1-1-16
(CPI-W)
Hawai $7.75
Scheduled
1-1-16
($8.50)
Illinois $8.25
None
None
Maine $7.50
None
None
Maryland $8.00
Scheduled
7-1-15
($8.25)
Massachusetts
$9.00
Scheduled (Federal)
1-1-16 ($10.00)
Michigan
$8.15
Inflation (Scheduled)
1-1-16 ($8.50)
Minnesota
$8.00
Inflation (Scheduled)
8-1-15 ($9.00)
Missouri $7.65
Inflation
1-1-16
(CPI-W)
Montana $8.05
Inflation
1-1-16
(CPI-U)
Nebraska $8.00
Scheduled
1-1-16
($9.00)
Nevada $8.25
Inflation
7-1-15
(CPI-U)
New Jersey
$8.38
Inflation
1-1-16 (CPI-W)
New Mexico
$7.50
None
None
New York
$8.75
Scheduled
12-31-15 ($9.00)
Ohio $8.10
Inflation
1-1-16
(CPI-W)
Oregon $9.25
Inflation
1-1-16
(CPI-U)
Rhode Island
$9.00
None
None
South Dakota
$8.50
Inflation
1-1-16 (CPI-U)
Vermont
$9.15
Inflation (Scheduled)
1-1-16 ($9.60)
Washington $9.47
Inflation
1-1-16
(CPI-W)
West Virginia
$8.00
Scheduled
1-1-16 ($8.75)
Source: Minimum wage rates are from U.S. Dept. of Labor, http://www.dol.gov/esa/minwage/america.htm;
Adjustment mechanisms are from state web sites and National Conference of State Legislatures,
http://www.ncsl.org/research/labor-and-employment/state-minimum-wage-chart.aspx.
Notes: In the “Adjustment Mechanism” column, “Inflation” means the state rate is indexed to some measure of
inflation, “Scheduled” means that one or more future increases are currently scheduled through existing
legislation, and “Federal” means that the state rate is partial y set above the federal rate by reference to the
federal rate. “Inflation (Scheduled)” means that future increases are currently scheduled and then the state rate
becomes indexed to a measure of inflation.
Trends in State Minimum Wages
Because federal and state minimum wages do not change in regular intervals or by regular
increments, the number of states and the share of the labor force covered by higher minimum
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wages changes annually. In general, during periods in which the federal minimum wage remains
constant, more states enact higher minimum wages and the share of the workforce for which the
federal rate serves as the floor likewise decreases. When the federal rate increases, some state
rates become equal to or less than the federal rate.
Table 1 presents a snapshot of minimum wage rates in the 50 states and DC. Of the total civilian
labor force, 61% is in states, which as of January 1, 2015, will have minimum wage rates higher
than the federal minimum, and 39% is in states in which the federal minimum wage is the wage
floor for FLSA-covered workers.
Figure 2 shows the relationship over time between changes in the federal minimum wage rate
and changes in the coverage of the federal minimum wage.13 Specifically, Figure 2 plots the
nominal and inflation-adjusted value of the federal minimum wage from 1983 to 2015 and the
percentage of the civilian labor force residing in states in which the federal wage serves as the
floor.14 If no state had a minimum wage above the federal rate, then the federal minimum wage
would be the floor for states in which 100% of the labor force resides; similarly, if every state had
a minimum wage above the current rate of $7.25, then the federal rate would not be binding for
the labor force. Instead the interaction of federal and state rates has led to the federal minimum
wage becoming a fluctuating, but generally decreasing, wage floor for the civilian labor force,
particularly during periods in which the federal rate is not increased.

13 Because the prevailing federal minimum wage and state minimum wages go into effect at various points in a given
year, the analysis in this section considers the years before and after federal changes have gone into effect. This is
because the number of states with higher minimum wages may be different on January 1st of a given year than on
December 31st of that same year. In order to avoid complications of within-year changes, the summaries in this section
are based on rate increases that occurred any time during the year (e.g., the federal increase to $7.25 on July 24, 2009 is
reflected as a rate of $7.25 for all of 2009). In addition, unless otherwise noted in this section, D.C. is counted as a state
for simplicity of presentation.
14 The federal minimum wage is the floor for “covered workers” (see previous discussion on enterprise and individual
coverage) in these states. Generally, the great majority of workers are covered. For those who are not covered, the state
minimum wage is likely to be the wage floor.
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Figure 2. The Share of the U.S. Labor Force Residing in States in Which the Federal
Minimum Wage is Higher Than the State Minimum Wage
% US Labor Force with Federal Minimum Wage as Floor
Federal Minimum Wage (Nominal)
Federal Minimum Wage ($2014)
$9.00
100%
90%
$8.00
80%
$7.00
70%
$6.00
60%
$5.00
50%
$4.00
40%
$3.00
30%
$2.00
20%
$1.00
10%
$0.00
0%

Source: CRS analysis of Tax Policy Center, State Minimum Wage Rates: 1983-2014, Washington, DC,
http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=603; US Department of Labor, Wage and Hour
Division, Changes in Basic Minimum Wages in Non-Farm Employment Under State Law: Selected Years 1968-2013,
Washington, DC, http://www.dol.gov/whd/state/stateMinWageHis.htm, and Bureau of Labor Statistics, Monthly
Labor Review, Washington, DC, multiple years.
Notes: The inflation-adjusted minimum wage is expressed in 2014 dol ars based on the Consumer Price Index
for Al Urban Consumers (CPI-U), U.S. City Average. For 2014, the semi-annual average is used. Prior to 1993,
DC did not have a broad minimum wage covering the general population. Thus for periods prior to 1993, this
report uses a weighted average of occupation-specific minimum wages, as reported in David Neumark and Olena
Nizalova, Minimum Wage Effects in the Longer Run, National Bureau of Economic Research, Working Paper 10656,
Cambridge, MA, March 2006, http://www.nber.org/papers/w10656. Based on this data, DC has maintained a
minimum wage above the federal rate for the entire 1983-2014 period.
Examining the specific time periods around changes in the federal minimum wage, as shown in
Figure 2, shows a general trend toward a lower share of the labor force being covered by the
federal minimum wage only. Federal rate increases in 2007 through 2009 mitigated for a period
this reduction, as did earlier changes in the federal rate.
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• In the period from 1983 through 1989, the federal minimum wage remained
constant at $3.35 per hour. Prior to the federal increases in 1990 and 1991, the
number of states with higher minimum wages rose from 3 in 1984 to 16 in 1989
and the share of the U.S. civilian labor force in states for which the federal rate
was the floor fell from 98% to 70%.
• Following a two-step federal increase in 1990 and 1991 from $3.35 to $4.25 per
hour, the number of states with higher minimum wages fell to 8 in 1992, which
meant that the federal rate was the floor for states comprising 92% of the civilian
labor force.
• The next federal minimum wage increase occurred in two steps in 1996 and
1997, increasing from $4.25 to $5.15 per hour. Prior to that increase, in 1995,
there were 10 states, representing 10% of the civilian labor force, with minimum
wages above the federal rate. Immediately following the second increase in 1997,
the number of states with higher minimum wages dropped to 8, but the share of
the labor force in states for which the federal rate served as a floor decreased to
82%.
• The federal minimum wage did not increase after 1997 until 2007. During much
of that period the number of states with higher minimum wages stayed somewhat
steady, increasing from 8 (comprising 18% of the civilian labor force) in 1998 to
12 (comprising 21% of the civilian labor force) in 2003. However, by 2006, 22
states representing 50% of the civilian labor force had minimum wage rates
above the federal rate. This increase was due in part to a few populous states,
such as Florida, Michigan, and New York, adopting minimum wage rates above
the federal rate in this period.
• Following the three-step increase in the federal minimum wage from $5.15 to the
current $7.25 (2007-2009), 15 states, comprising 33% of the civilian labor force,
had rates above the federal minimum wage in 2010. By 2015, this rises to 29
states and DC, which means that the federal rate will be the wage floor in states
representing 39% of the civilian labor force.
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Appendix. Selected Characteristics of State
Minimum Wage Policies
For the 29 states and DC with state minimum wage rates above the federal rate by January 1,
2015, Table 1 and much of the text above summarizes information on those states’ minimum
wage policies, highlighting minimum wage rates and mechanisms used to establish and adjust
wage rates. As discussed previously, for those states with current or scheduled minimum wages
above the federal rate, three main mechanisms are in place to adjust future rates: (1) scheduled
increases, (2) indexation to inflation, or (3) reference to the federal rate plus an add-on (i.e., a
state minimum wage is a percentage or dollar amount above the federal rate). For the 21 states
with minimum wage rates equal to or below the federal rate, however, there are no mechanisms in
place to move rates above the federal rate. Thus, the main difference within this group of states is
the relationship of the state rate, if any, to the federal rate.
For those 21 states with minimum wages equal to or below the federal rate, the state rate may be
set in four ways:15
• No state minimum wage provisions: In five states—Alabama, Louisiana,
Mississippi, South Carolina, and Tennessee—there are no provisions for state
minimum wage rates. In practice, this means that most workers in these states are
covered by the FLSA minimum wage provisions since coverage is generally
broad.
• State minimum wage provisions with no reference to the FLSA: Five states have
state minimum wage rates but do not reference the FLSA. Two of these states—
Georgia and Wyoming—have state rates below $7.25, while three of these
states—Kansas, North Dakota, and Wisconsin—have rates equal to $7.25.
However, because there is no reference to the FLSA rate or other provision for
adjustment in any of these states, the state rate does not change unless the state
policy is changed.
• State minimum wage equals the FLSA rate: Six states—Idaho, Indiana, New
Hampshire, Oklahoma, Texas, and Virginia—set the state rate equal to the FLSA
rate. Thus, when the FLSA rate changes, the state rates in these six states change
to equal the FLSA rate.
• State minimum wage equals FLSA rate if FLSA is greater: In four states—Iowa,
Kentucky, North Carolina, and Pennsylvania—the state rate is specified
separately but includes a provision to equal the FLSA rate if the latter is above
the state specified rate.
Table A-1 provides detailed information about minimum wage policies in the 50 states and DC,
including those summarized in a more concise manner in Table 1.

15 Utah does not fit entirely into any of the four categories. Utah state law authorizes the Utah Labor Commissioner to
set the state rate but prohibits the commissioner from setting a rate higher than the FLSA rate.
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Table A-1. Selected State Minimum Wage Policies
As of January 1, 2015
Year

State
Established
Mechanism of
Mechanism
Minimum
/ Year
Setting State
for Future
State Legislation
State
Wage Rate
Effectivea
Rate
Adjustments
or Policy Citation
Pertinent Language and Notes
Alabama
None
n/a
None

None

No state minimum wage
n/a
law
Alaska
$8.75
2014 / 2015
State specified

Scheduled

Alaska Bal ot Measure 3

Section 3. AS 23.10.065(a) is repealed and reenacted to read:
rate of $8.75 on
increases:
January 1, 2015.
Alaska Statute 23.10.065
“(a) Except as otherwise provided for in law, an employer shall pay
$9.75 (1-1-16)
to each employee a minimum wage, as established herein, for hours
worked in a pay period, whether the work is measured by time,
Beginning January
piece, commission or otherwise. An employer may not apply tips or
2017, annual
gratuities bestowed upon employees as a credit toward payment of
adjustment to be
the minimum hourly wage required by this section. Tip credit as
made based on
defined by the Fair Labor Standards Act of 1938 as amendment does
CPI-U for
not apply to the minimum wage established by this section.
Anchorage
Beginning with the passage of this Act, the minimum wage shal be
Metropolitan
$8.75 per hour effective January 1, 2015, $9.75 per hour effective
Area.
January 1, 2016 and thereafter adjusted annual y for inflation. The
In any case, the
adjustment shall be calculated each September 30, for the
Alaska minimum
proceeding January-December calendar year, by the Alaska
wage must be at
Department of Labor and Workforce Development, using 100
least $1 above the
percent of the rate of inflation based on the Consumer Price Index
federal minimum
for all urban consumers for the Anchorage metropolitan area,
wage.
compiled by the Bureau of Labor Statistics, United States
Department of Labor; the department shall round the adjusted
minimum hourly wage up to the nearest one cent; the adjusted
minimum hourly wage shal apply to work performed beginning on
January 1 through December 31 of the year for which it is effective.
Section 4. If the minimum wage determined under Section 3 is less
than one dollar over the federal minimum wage, the Alaska
minimum wage shall be set at one dol ar over the federal minimum
wage. This amount shall be adjusted in subsequent years by the
method established in Section 3.”
CRS-12

Year

State
Established
Mechanism of
Mechanism
Minimum
/ Year
Setting State
for Future
State Legislation
State
Wage Rate
Effectivea
Rate
Adjustments
or Policy Citation
Pertinent Language and Notes
Arizona
$8.05
2006 / 2015
State specified

Inflation:

Arizona Revised Statutes,

“The minimum wage shal be increased on January 1, 2008 and on
rate of $6.75 on
23-363
January 1 of successive years by the increase in the cost of living.
January 1, 2007,
Indexed to CPI-U,
The increase in the cost of living shal be measured by the
followed by
U.S. City Average
percentage increase as of August of the immediately preceding year
adjustment on
as of January 1,
over the level as of August of the previous year of the consumer
January 1, 2008,
2008.
price index (all urban consumers, U.S. city average for all items) or
and each
its successor index as published by the U.S. department of labor or
successive January
its successor agency, with the amount of the minimum wage
1.
increase rounded to the nearest multiple of five cents."
Arkansas
$7.50
2014 / 2015
State specified

Scheduled

Arkansas Code

“Beginning January 1, 2015, every employer shal pay each of his or
rate of $7.50 on
increases:
11-4-210
her employees wages at the rate of not less than seven dollars and
January 1, 2015.
fifty cents ($7.50) per hour, beginning January 1, 2016 the rate of
$8.00 (1-1-16)
not less than eight dollars ($8.00) per hour and beginning January 1,
$8.50 (1-1-17)
2017 the rate of not less than eight dol ars and fifty cents ($8.50)
per hour except as otherwise provided in this subchapter.”
California
$9.00
2013 / 2014
State specified

Scheduled

California Labor Code

“Notwithstanding any other provision of this part, on and after July
rate of $9.00 on
increases:
1182.12
1, 2014, the minimum wage for all industries shall be not less than
July 1, 2014,
nine dol ars ($9.00) per hour, and on and after January 1, 2016, the
followed by
$10.00 (1-1-16)
minimum wage for all industries shall be not less than ten dollars
scheduled
($10.00) per hour."
increase.
Colorado
$8.23
2006 / 2015
State specified

Inflation:

Colorado Constitution,

“Effective January 1, 2007, Colorado’s minimum wage shal be
rate of $6.85 on
Art. XVIII, Section 15
increased to $6.85 per hour and shall be adjusted annually for
January 1, 2007,
Indexed to CPI-U,
inflation, as measured by the Consumer Price Index used for
followed by
Denver-Boulder-
Colorado."
adjustment on
Greeley Metro
January 1, 2008,
Area as of January
and each
1, 2008.
successive January
1.
CRS-13

Year

State
Established
Mechanism of
Mechanism
Minimum
/ Year
Setting State
for Future
State Legislation
State
Wage Rate
Effectivea
Rate
Adjustments
or Policy Citation
Pertinent Language and Notes
DC
$9.50
2014 / 2014
State specified

Scheduled

D.C. Code Section 32-

“(3) Except as provided in subsection (h) of this section, as of July 1,
rate of $9.50 on
increases:
1003
2014, the minimum wage required to be paid to any employee by
July 1, 2014,
any employer in the District of Columbia shall be $ 9.50 an hour, or
followed by
$10.50 (7-1-15)
the minimum wage set by the United States government pursuant to
scheduled
$11.50 (7-1-16)
the Fair Labor Standards Act, plus $1, whichever is greater.
increases in 2015
and 2016,
Indexed to CPI-U,
(4) Except as provided in subsection (h) of this section, as of July 1,
followed by
Washington
2015, the minimum wage required to be paid to any employee by
adjustment on
Metro Area as of
any employer in the District of Columbia shall be $ 10.50 an hour,
July 1, 2017, and
July 1, 2017.
or the minimum wage set by the United States government
each successive
pursuant to the Fair Labor Standards Act, plus $1, whichever is
July 1.
Note: For 2015
greater.
and 2016, the
minimum wage is
(5) Except as provided in subsection (h) of this section, as of July 1,
the greater of the
2016, the minimum wage required to be paid to any employee by
scheduled
any employer in the District of Columbia shall be $11.50 an hour,
increases or the
or the minimum wage set by the United States government
FLSA rate plus $1.
pursuant to the Fair Labor Standards Act, plus $1, whichever is
greater.
(6) (A) Except as provided in subsection (h) of this section,
beginning on July 1, 2017 and no later than July 1 of each successive
year, the minimum wage provided in this subsection shall be
increased in proportion to the annual average increase, if any, in the
Consumer Price Index for All Urban Consumers in the Washington
Metropolitan Statistical Area published by the Bureau of Labor
Statistics of the United States Department of Labor for the previous
calendar year. Any increase under this paragraph shall be adjusted
to the nearest multiple of $.05.”
CRS-15

Year

State
Established
Mechanism of
Mechanism
Minimum
/ Year
Setting State
for Future
State Legislation
State
Wage Rate
Effectivea
Rate
Adjustments
or Policy Citation
Pertinent Language and Notes
Floridab
$8.05
2004; 2005 /
State specified

Inflation:

Florida Labor Statute 448-

“Beginning September 30, 2005, and annual y on September 30
2015
rate of $6.15 on
110 (4)(a)
thereafter, the Department of Economic Opportunity shall calculate
May 2, 2005,
Indexed to CPI-
an adjusted state minimum wage rate by increasing the state
followed by
W, South Region
minimum wage by the rate of inflation for the 12 months prior to
adjustment on
as of January 1,
September 1. In calculating the adjusted state minimum wage, the
January 1, 2006,
2006.
Department of Economic Opportunity shall use the Consumer Price
and each
Index for Urban Wage Earners and Clerical Workers, not seasonally
successive January
adjusted, for the South Region or a successor index as calculated by
1.
the United States Department of Labor. Each adjusted state
minimum wage rate shall take effect on the fol owing January 1, with
the initial adjusted minimum wage rate to take effect on January 1,
2006."
Georgia
$5.15
2001 / 2001
State specified

None

Georgia Code 34-4-3

“(a) Except as otherwise provided in this Code section, every
rate of $5.15 in
employer, whether a person, firm, or corporation, shall pay to all
2001,
covered employees a minimum wage which shall be not less than
$5.15 per hour for each hour worked in the employment of such
employer.”
Hawaii
$7.75
2014 / 2015
State specified

Scheduled

Hawaii Revised Statutes

“(a) Except as provided in section 387-9 and this section, every
rate of $7.75 on
increases:
387-2
employer shal pay to each employee employed by the employer,
January 1, 2015.
wages at the rate of not less than:
$8.50 (1-1-16)
(1) $6.25 per hour beginning January 1, 2003;
$9.25 (1-1-17)
(2) $6.75 per hour beginning January 1, 2006;
$10.10 (1-1-18)
(3) $7.25 per hour beginning January 1, 2007;
(4) $7.75 per hour beginning January 1, 2015;
(5) $8.50 per hour beginning January 1, 2016;
(6) $9.25 per hour beginning January 1, 2017; and
(7) $10.10 per hour beginning January 1, 2018.”

Note: This is language from legislation signed into law in May 2014,
but a 2005 law had already set the state minimum wage at $7.25,
effective 1-1-07.
CRS-16

Year

State
Established
Mechanism of
Mechanism
Minimum
/ Year
Setting State
for Future
State Legislation
State
Wage Rate
Effectivea
Rate
Adjustments
or Policy Citation
Pertinent Language and Notes
Idaho
$7.25
2007 / 2009
State specified

Next FLSA

Idaho Statutes 44-1502

“Except as hereinafter otherwise provided, no employer shal pay to
rate of $5.15 on
minimum wage
any of his employees any wages computed at a rate of less than four
September 1,
rate change.
dol ars and seventy-five cents ($4.75) commencing April 1, 1997,
1997, thereafter
and five dol ars and fifteen cents ($5.15) commencing September 1,
equaling the FLSA
1997, per hour for employment. The amount of the minimum wage
rate.
shall conform to, and track with, the federal minimum wage.”
Illinois
$8.25
2006 / 2010
State specified

None

Illinois Compiled Statutes

“On and after July 1, 2010 every employer shall pay to each of his
rate of $8.25 on
820-105/4
or her employees who is 18 years of age or older in every
July 1, 2010.
occupation wages of not less than $8.25 per hour."
Indiana
$7.25
2007 / 2009
State specified

Next FLSA

Indiana Code 22-2-2-1

“(h) Except as provided in subsections (c) and (j), every employer
rate equal to
minimum wage
employing at least two (2) employees during a work week shal , in
FLSA rate on July
rate change.
any work week in which the employer is subject to this chapter, pay
1, 2007,
each of the employees in any work week beginning on or after June
thereafter
30, 2007, wages of not less than the minimum wage payable under
equaling the FLSA
the federal Fair Labor Standards Act of 1938, as amended (29 U.S.C.
rate.
201 et seq.).”
Iowa
$7.25
2007 / 2008
State specified

State rate must

Iowa Code 91D.1

“1. a. The state hourly wage shal be at least $6.20 as of April 1,
rate of $7.25 on
match federal
2007, and $7.25 as of January 1, 2008.
January 1, 2008.
minimum wage
rate if the latter is
b. Every employer, as defined in the federal Fair Labor Standards
greater.
Act of 1938, as amended to January 1, 2007, shal pay to each of the
employer’s employees, as defined in the federal Fair Labor Standards
Act of 1938, as amended to January 1, 2007, the state hourly wage
stated in paragraph "a", or the current federal minimum wage,
pursuant to 29 U.S.C. § 206, as amended, whichever is greater.”
Kansas
$7.25
2009 / 2010
State specified

None

Kansas Statute 44-1203

“Except as otherwise provided in the minimum wage and maximum
rate of $7.25 on
hours law, every employer shal pay to each employee wages at a
January 1, 2010.
rate as follows:
(1) Prior to January 1, 2010, employee wages shall be paid at a
rate of not less than $2.65 an hour; and
(2) on and after January 1, 2010, employee wages shall be paid at a
rate of not less than $7.25 an hour.”
CRS-17

Year

State
Established
Mechanism of
Mechanism
Minimum
/ Year
Setting State
for Future
State Legislation
State
Wage Rate
Effectivea
Rate
Adjustments
or Policy Citation
Pertinent Language and Notes
Minnesota
$8.00c
2014 / 2014
State specified

Scheduled

Minnesota Statutes 177.24

“(1) every large employer must pay each employee wages at a rate
rate of $8.00 on
increases:
of at least:
August 1, 2014.
$9.00 (8-1-15)
(i) $ 8.00 per hour beginning August 1, 2014;
$9.50 (8-1-16)
(i ) $ 9.00 per hour beginning August 1, 2015;

(iii) $ 9.50 per hour beginning August 1, 2016; and
Beginning 1-1-18,
(iv) the rate established under paragraph (f) beginning January
minimum wage
1, 2018;
rate wil be
annually adjusted
(f) No later than August 31 of each year, beginning in 2017, the
according to
commissioner shal determine the percentage increase in the rate of
inflation (implicit
inflation, as measured by the implicit price deflator, national data for
price deflator),
personal consumption expenditures as determined by the United
subject to a
States Department of Commerce, Bureau of Economic Analysis
maximum
during the 12-month period immediately preceding that August or,
increase of 2.5%.
if that data is unavailable, during the most recent 12-month period
for which data is available. The minimum wage rates in paragraphs
(b), (c), (d), and (e) are increased by the lesser of: (1) 2.5 percent,
rounded to the nearest cent; or (2) the percentage calculated by the
commissioner, rounded to the nearest cent. A minimum wage rate
shall not be reduced under this paragraph. The new minimum wage
rates determined under this paragraph take effect on the next
January 1.”
Mississippi
None
n/a
None

None

No state minimum wage
n/a
law
Missouri
$7.65
2006 / 2015
State specified

Inflation:

Missouri Revised Statutes

“The minimum wage shall be increased or decreased on January 1,
rate of $6.50 on
290.502
2008, and on January 1 of successive years, by the increase or
January 1, 2007,
CPI-W
decrease in the cost of living. On September 30, 2007, and on each
followed by
September 30 of each successive year, the director shall measure
adjustment on
the increase or decrease in the cost of living by the percentage
January 1, 2008,
increase or decrease as of the preceding July over the level as of July
and each
of the immediately preceding year of the Consumer Price Index for
successive January
Urban Wage Earners and Clerical Workers (CPI-W) or successor
1.
index as published by the U.S. Department of Labor or its successor
agency, with the amount of the minimum wage increase or decrease
rounded to the nearest five cents."
CRS-22

Year

State
Established
Mechanism of
Mechanism
Minimum
/ Year
Setting State
for Future
State Legislation
State
Wage Rate
Effectivea
Rate
Adjustments
or Policy Citation
Pertinent Language and Notes
Montana
$8.05
2006 / 2015
State specified

Inflation:

Montana Code Annotated

“No later than September 30 of each year, an adjustment of the
rate of higher of
39-3-409
wage amount specified in subsection (1) must be made based upon
$6.15 or FLSA
CPI-U, U.S. City
the increase, if any, from August of the preceding year to August of
rate, followed by
Average
the year in which the calculation is made in the consumer price
adjustment on
index, U.S. city average, al urban consumers, for all items, as
January 1, 2007,
published by the bureau of labor statistics of the United States
and each
department of labor."
successive January
1.
Nebraska
$8.00
2014 / 2015
State specified

Scheduled

Nebraska Revised Statutes
“Except as otherwise provided in this section and section 48-
rate of $8.00 on
increases:
48-1203
1203.01, every employer shall pay to each of his or her employees a
January 1, 2015.
minimum wage of:
$9.00 (1-1-16)
(a) Seven dol ars and twenty-five cents per hour through December
31, 2014;
(b) Eight dol ars per hour on and after January 1, 2015, through
December 31, 2015; and
(c) Nine dol ars per hour on and after January 1, 2016.”
Nevada
$8.25d
2006 / 2010
State specified

Inflation:

Nevada Constitution

“Each employer shall pay a wage to each employee of not less than
rate of $5.15 (or
Article 15 Sect. 16
the hourly rates set forth in this section. The rate shal be five
$6.15 with no
CPI-U, U.S. City
dollars and fifteen cents ($5.15) per hour worked, if the employer
health insurance)
Average.
provides health benefits as described herein, or six dollars and
in 2006, fol owed
State rate is the
fifteen cents ($6.15) per hour if the employer does not provide such
by adjustment on
greater of $5.15
benefits. Offering health benefits within the meaning of this section
July 1, 2007, and
($6.15) plus the
shal consist of making health insurance available to the employee
each successive
cumulative
for the employee and the employee’s dependents at a total cost to
July 1.
inflation since
the employee for premiums of not more than 10 percent of the
12/31/04 (subject
employee’s gross taxable income from the employer. These rates of
to a maximum
wages shall be adjusted by the amount of increases in the federal
annual increase of
minimum wage over $5.15 per hour, or, if greater, by the
3%) or the
cumulative increase in the cost of living. The cost of living increase
increases in the
shall be measured by the percentage increase as of December 31 in
federal minimum
any year over the level as of December 31, 2004 of the Consumer
wage over $5.15.
Price Index (Al Urban Consumers, U.S. City Average) as published
by the Bureau of Labor Statistics, U.S. Department of Labor or the

successor index or federal agency. No CPI adjustment for any one-
year period may be greater than 3%."

CRS-23

Year

State
Established
Mechanism of
Mechanism
Minimum
/ Year
Setting State
for Future
State Legislation
State
Wage Rate
Effectivea
Rate
Adjustments
or Policy Citation
Pertinent Language and Notes
New
$7.25
2007 / 2008
State specified

Next FLSA

New Hampshire Revised

“Unless otherwise provided by statute, no person, firm, or
Hampshire
rate equal to
minimum wage
Statutes 279:21
corporation shall employ any employee at an hourly rate lower than
FLSA rate on July
rate change.
that set forth in the federal minimum wage law, as amended.”
1, 2007,
thereafter
Note: This is language from the current statute as revised by 2011
equaling the FLSA
legislation, but a 2007 law had already set the state minimum wage
rate.
at $7.25.
New Jersey
$8.38
2013 / 2015
State specified

Inflation:

New Jersey Constitution

“A wage rate of not less than the rate required by that act, or $8.25
rate of $8.25 on
Article I, paragraph 23
per hour, whichever is more. On the September 30 next following
January 1, 2014,
CPI-W
the date of the approval of this amendment, and on September 30
followed by
State rate must
of each subsequent year, the State minimum wage rate shall be
adjustment on
match federal
increased, effective the fol owing January 1, by any increase during
each successive
minimum wage if
the one year prior to that September 30 in the consumer price
January 1.
the latter is
index for al urban wage earners and clerical workers (CPI-W) as
greater.
calculated by the federal government."
New Mexico
$7.50
2007 / 2009
State specified

None

New Mexico Statutes 50-

“An employer shall pay an employee the minimum wage rate of six
rate of $7.50 on
4-22
dollars fifty cents ($ 6.50) an hour. As of January 1, 2009, an
January 1, 2009.
employer shall pay the minimum wage rate of seven dol ars fifty
cents ($7.50) an hour."
New York
$8.75
2013 / 2015
State specified

Scheduled

New York Codes, Rules,

“For all employees except janitors in residential buildings, the basic
rate of $8.75 on
increases:
and Regulations Title 12,
minimum hourly rate shall be:
December 31,
Section 141-1.3
(c) $8.00 per hour on and after December 31, 2013;
2014.
$9.00 (12-31-15)
(d) $8.75 per hour on and after December 31, 2014;
State rate must
(e) $9.00 per hour on and after December 31, 2015, or, if greater,
match federal
such other wage as may be established by Federal law pursuant to
minimum wage
29 U.S.C. section 206 or its successors."
rate if the latter is
greater.
North Carolina
$7.25
2006 / 2009
State specified

State rate must

North Carolina General

“Every employer shal pay to each employee who in any workweek
rate of higher of
match federal
Statutes 95-25.3
performs any work, wages of at least six dol ars and fifteen cents
$6.15 or FLSA
minimum wage
($6.15) per hour or the minimum wage set forth in paragraph 1 of
rate.
rate if the latter is
section 6(a) of the Fair Labor Standards Act, 29 U.S.C. 206(a)(1), as
greater.
that wage may change from time to time, whichever is higher,
except as otherwise provided in this section.”
CRS-24

Year

State
Established
Mechanism of
Mechanism
Minimum
/ Year
Setting State
for Future
State Legislation
State
Wage Rate
Effectivea
Rate
Adjustments
or Policy Citation
Pertinent Language and Notes
North Dakota
$7.25
2007 / 2009
State specified

None

North Dakota Code 34-

“Except as otherwise provided under this chapter and rules adopted
rate of $7.25 on
06-22
by the commissioner, every employer shal pay to each of the
July 24, 2009.
employer’s employees:
a. Effective on the effective date of this section, a wage of at least
five dollars and eighty-five cents per hour;
b. Effective twelve months after the effective date of this section, a
wage of at least six dollars and fifty-five cents per hour; and
c. Effective twenty-four months after the effective date of this
section, a wage of at least seven dol ars and twenty-five cents per
hour.”
Ohio
$8.10
2006 / 2015
State specified

Inflation:

Ohio Constitution 2.34a

“On the thirtieth day of each September, beginning in 2007, this
rate of $6.85 on
state minimum wage rate shall be increased effective the first day of
January 1, 2007,
CPI-W
the fol owing January by the rate of inflation for the twelve month
followed by
period prior to that September according to the consumer price
adjustment on
index or its successor index for all urban wage earners and clerical
each successive
workers for all items as calculated by the federal government
January 1.
rounded to the nearest five cents."
Oklahoma
$7.25
1983 / 2009
State specified

Next FLSA

Oklahoma Statutes 40-

“Except as otherwise provided in the Oklahoma Minimum Wage
rate equal to
minimum wage
197.2
Act, no employer within the State of Oklahoma shall pay any
FLSA rate on
rate change.
employee a wage of less than the current federal minimum wage for
November 1,
all hours worked.”
1983, thereafter
equaling the FLSA
rate.
Oregon
$9.25
2003 / 2015
State specified

Inflation:

Oregon Revised Statutes

“No later than September 30 of each year, beginning in calendar
rate of $6.90 on
653.025
year 2003, the commissioner shall calculate an adjustment of the
January 1, 2003,
CPI-U, U.S. City
wage amount specified in subsection (1) of this section based upon
followed by
Average
the increase (if any) from August of the preceding year to August of
adjustment on
the year in which the calculation is made in the U.S. City Average
each successive
Consumer Price Index for All Urban Consumers for All Items as
January 1.
prepared by the Bureau of Labor Statistics of the United States
Department of Labor or its successor.
(c) The wage amount established under this subsection shall:
(A) Be rounded to the nearest five cents."
CRS-25

Year

State
Established
Mechanism of
Mechanism
Minimum
/ Year
Setting State
for Future
State Legislation
State
Wage Rate
Effectivea
Rate
Adjustments
or Policy Citation
Pertinent Language and Notes
Vermont
$9.15
2014 / 2015
State specified

Scheduled

Vermont Statutes

“(a) An employer shall not employ any employee at a rate of less
rate of $9.15 on
increases:
Annotated, 21 Section 384
than $9.15. Beginning January 1, 2016, an employer shall not employ
January 1, 2015.
any employee at a rate of less than $9.60. Beginning January 1, 2017,
$9.60 (1-1-16)
an employer shall not employ any employee at a rate of less than
$10.00 (1-1-17)
$10.00. Beginning January 1, 2018, an employer shall not employ any
employee at a rate of less than $10.50, and beginning January 1,
$10.50 (1-1-18)
2019 and on each subsequent January 1, the minimum wage rate
shal be increased by five percent or the percentage increase of the

Consumer Price Index, CPI-U, U.S. city average, not seasonal y
Beginning January
adjusted, or successor index, as calculated by the U.S. Department
1, 2019,
of Labor or successor agency for the 12 months preceding the
adjustment to be
previous September 1, whichever is smaller, but in no event shal
based on inflation
the minimum wage be decreased. The minimum wage shall be
(CPI-U, U.S. City
rounded off to the nearest $0.01.
Average)
An employer in the hotel, motel, tourist place, and restaurant
State rate must
industry shal not employ a service or tipped employee at a basic
match federal
wage rate less than one-half the minimum wage. As used in this
minimum wage
subsection, “a service or tipped employee” means an employee of a
rate if the latter is
hotel, motel, tourist place, or restaurant who customarily and
greater.
regularly receives more than $120.00 per month in tips for direct
and personal customer service.
If the minimum wage rate established by the U.S. government is
greater than the rate established for Vermont for any year, the
minimum wage rate for that year shall be the rate established by the
U.S. government.”
Virginia
$7.25
1991 / 2009
State specified

Next FLSA

Virginia Code Annotated

“Every employer shal pay to each of his employees wages at a rate
rate equal to
minimum wage
40.1-28.10
not less than the federal minimum wage and a training wage as
FLSA rate in
rate change.
prescribed by the U.S. Fair Labor Standards Act (29 U.S.C. § 201 et
1997, thereafter
seq.).”
equaling the FLSA
rate.
Note: This is language from the current statute as revised by 1997
legislation, but a 1991 law had already required that the state
minimum wage match the federal rate.
CRS-30

Year

State
Established
Mechanism of
Mechanism
Minimum
/ Year
Setting State
for Future
State Legislation
State
Wage Rate
Effectivea
Rate
Adjustments
or Policy Citation
Pertinent Language and Notes
West Virginia
$8.00
2014 / 2015
State specified

Scheduled

West Virginia Code 21-

“(a) Minimum wage:
rate of $8.00 on
increases:
5C-2
January 1, 2015.
(1) After June 30, 2006, every employer shal pay to each of his or
$8.75 (1-1-16)
her employees wages at a rate not less than $ 5.85 per hour.
Note: State rate
(2) After June 30, 2007, every employer shal pay to each of his or
must match
her employees wages at a rate not less than $ 6.55 per hour.
federal minimum
wage rate if the
(3) After June 30, 2008, every employer shal pay to each of his or
latter is greater.
her employees wages at a rate not less than $ 7.25 per hour.
(4) After January 1, 2015, every employer shall pay to each of his or
her employees wages at a rate not less than $ 8.00 per hour.
(5) After January 1, 2016, every employer shall pay to each of his or
her employees wages at a rate not less than $ 8.75 per hour.
(6) When the federal minimum hourly wage as prescribed by 29
U.S.C. Section 206(a)(1) is equal to or greater than the wage rate
prescribed in the applicable provision of this subsection, every
employer shal pay to each of his or her employees wages at a rate
of not less than the federal minimum hourly wage as prescribed by
29 U.S.C. Section 206(a)(1). The minimum wage rates required
under this subparagraph shall be thereafter adjusted in accordance
with adjustments made in the federal minimum hourly rate. The
adoption of the federal minimum wage provided by this subdivision
includes only the federal minimum hourly rate prescribed in 29
U.S.C. Section 206(a)(1) and does not include other wage rates, or
conditions, exclusions, or exceptions to the federal minimum hourly
wage rate. In addition, adoption of the federal minimum hourly wage
rate does not extend or modify the scope or coverage of the
minimum wage rate required under this subdivision.”
Note: This is language from legislation signed into law in June 2014,
but a 2006 law had already set the state minimum wage at $7.25,
effective 6-30-08.
CRS-32

Year

State
Established
Mechanism of
Mechanism
Minimum
/ Year
Setting State
for Future
State Legislation
State
Wage Rate
Effectivea
Rate
Adjustments
or Policy Citation
Pertinent Language and Notes
Wisconsin
$7.25
2009 / 2009
State specified

None

Wisconsin Administrative

“This subsection is effective on July 24, 2009. Except as provided in
rate of $7.25 on
Code 272.03
ss. DWD 272.05 to 272.09, no employer may employ any employee
July 24, 2009.
in any occupation, trade, or industry at a lesser hourly rate than as
follows:
(a) Al employees except opportunity and minor employees
$7.25 per hour.
(b) Minor employees $7.25 per hour.
(c) Opportunity employees $5.90 per hour.”
Wyoming
$5.15
2001 / 2001
State specified

None

Wyoming Statutes

“Every employer shal pay to each of his or her employees wages at
rate of $5.15 on
Annotated 27-4-202
a rate of not less than five dollars and fifteen cents ($5.15) per
April 1, 2001.
hour”
Source: Minimum wage rates are from U.S. Dept. of Labor, http://www.dol.gov/esa/minwage/america.htm; adjustment mechanisms are from state websites and National
Conference of State Legislatures, http://www.ncsl.org/research/labor-and-employment/state-minimum-wage-chart.aspx; policy citation and pertinent language are from
state statutes.

a. “Year Established” refers to the year that legislation or a ballot initiative establishing the current minimum wage rate in the state was passed. “Year Effective” refers
to the year that the current minimum wage rate went into effect. While the majority of states have enacted minimum wage laws through state legislatures, the
following 10 states’ minimum wage provisions were established through ballot initiatives or referendum: Arizona, Colorado, Florida, Missouri, Montana, Nevada,
New Jersey, Ohio, Oregon, and Washington.
b. A bal ot initiative to amend the Florida state constitution and establish a minimum wage was approved by voters in 2004; in 2005 legislation was passed (S.B. 18) that
created a new section in the Florida Statutes: 448.110 (State Minimum Wage; Annual Wage Adjustment; Enforcement).
c. Minnesota’s $8.00 minimum wage rate applies to large employers, which are defined as enterprises “whose annual gross volume of sales made or business done is
not less than $500,000 (exclusive of excise taxes at the retail level that are separately stated) and covered by the Minnesota Fair Labor Standards Act.” Small
employers (defined as enterprises “whose annual gross volume of sales made or business done is less than $500,000”) may pay a minimum wage of $6.50. There are
scheduled increases for small employers effective on the same dates as those for large employers.
d. Nevada’s $8.25 minimum wage rate applies to employees who do not receive health benefits. The minimum wage for employees who receive qualified health
benefits from their employers is $7.25 per hour.

CRS-33

State Minimum Wages: An Overview

Author Contact Information

David H. Bradley

Specialist in Labor Economics
dbradley@crs.loc.gov, 7-7352

Acknowledgments
Sarah Caldwell, Information Research Specialist, constructed Table A-1 and provided extensive research
on state minimum wage policies. This report would not have been possible without her contributions.
Abigail Rudman, Information Research Specialist, contributed significant background research on state
minimum wage policies prior to the development of this report. Her early work provided the basis for the
50 state information presented in this report.
Congressional Research Service
34