State Minimum Wages: An Overview

Updated October 3, 2024

Congressional Research Service

https://crsreports.congress.gov

R43792

State Minimum Wages: An Overview

Congressional Research Service

Summary

The Fair Labor Standards Act (FLSA), enacted in 1938, is the federal law that establishes the general minimum wage that must be paid to all covered, nonexempt workers employed in a state or territory of the United States. While the FLSA mandates broad minimum wage coverage, states and localities have the option of establishing minimum wage rates that are different from those set by the FLSA. The FLSA provides that an individual is generally covered by the highest of the state, local, or federal minimum wage.

This report covers minimum wage policies in the 50 states and the District of Columbia (DC) but does not include information on local minimum wage policies. Based on current rates and scheduled increases occurring at some point in 2024, minimum wage rates are above the federal rate of $7.25 per hour in 30 states and DC, ranging from $8.75 (West Virginia) to $17.50 (DC). Another 13 states have minimum wage rates equal to the federal rate. The remaining states have minimum wage rates below the federal rate or do not have a state minimum wage requirement. In the states with no minimum wage requirements or wage rates lower than the federal minimum wage, only individuals who are not covered by the FLSA or who are covered but exempt from the FLSA minimum wage provisions are subject to those lower rates.

States typically adjust their minimum wage rates in one of two ways: (1) legislatively scheduled rate increases that may include one or several increments or (2) a measure of inflation to index the value of the minimum wage to the general change in prices. Of the 30 states and DC with minimum wage rates above the federal rate, 6 currently have no scheduled increases beyond 2024, 4 states have only legislatively scheduled rate increases after 2024, and 20 states and DC have scheduled increases through a combination of planned increases and current- or future-year indexation of state minimum wage rates to a measure of inflation.

Currently, seven states—California, Connecticut, Maryland, Massachusetts, New Jersey, New York, and Washington—and DC have minimum wages of at least $15.00 per hour. In addition, six states—Delaware, Florida, Hawaii, Illinois, Nebraska, and Rhode Island—have scheduled rate increases to at least $15.00 per hour at some point between 2024 and 2026.

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 1983, 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. The share of the U.S. civilian labor force living in states in which the federal minimum wage is the floor has fluctuated but generally declined, and was about 37% in 2023.

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Contents

Introduction ..................................................................................................................................... 1 The FLSA Minimum Wage ............................................................................................................. 2 Minimum Wage Policies in the States ............................................................................................. 2

Wage Rates ................................................................................................................................ 3

Mechanisms for Future Adjustments......................................................................................... 4

Legislatively Scheduled Increases ...................................................................................... 4 Indexing to Inflation ........................................................................................................... 5 Reference to the Federal Rate ............................................................................................. 7

Trends in State Minimum Wages..................................................................................................... 9

Figures

Figure 1. The Federal Minimum Wage 1938 to 2024 ...................................................................... 2

Figure 2. State Minimum Wage Rates in 2024 ................................................................................ 4

Figure 3. How Binding is the Federal Minimum Wage? ............................................................... 10

Figure 4. Percentage Change in State Minimum Wage Rates, 2009-2024 .................................... 12

Tables

Table 1. States with Legislatively Scheduled Minimum Wage Increases after 2024 ...................... 5 Table 2. Indexation Types in States with Minimum Wages Above the FLSA Rate ......................... 6

Table 3. Minimum Wage Rates in States with Enacted Minimum Wage Rates above

$7.25 ............................................................................................................................................. 8

Table B-1. Selected State Minimum Wage Policies ...................................................................... 16

Appendixes

Appendix A. Fair Labor Standards Act Coverage ......................................................................... 13 Appendix B. Selected Characteristics of State Minimum Wage Policies ...................................... 15

Contacts

Author Information ........................................................................................................................ 29

Acknowledgments ......................................................................................................................... 29

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Introduction

The Fair Labor Standards Act (FLSA), enacted in 1938, establishes a federal minimum wage that must be paid to all workers who are covered by and not exempt from the FLSA minimum wage provisions.¹ The FLSA first established a minimum wage of $0.25 per hour in 1938.² The act’s minimum wage provisions have been amended numerous times since then, typically to expand coverage to certain worker groups or raise the wage rate. Since its establishment, the minimum wage rate has been raised 22 separate times.³ 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).

While the FLSA mandates broad minimum wage coverage, states and localities have the option of establishing minimum wage rates that are different from those set by the FLSA. The FLSA provides that an individual is generally covered by the highest of the state, local, or federal minimum wage.⁴ The focus of this report is on states (including the District of Columbia [DC]) that have enacted minimum wage rates above the federal rate. Minimum wage rates established by local political entities (i.e., local minimum wages) are not discussed in this report,⁵ nor are state laws establishing special minimum wages for youth, workers with disabilities, or other worker groups.⁶

The state policies covered in this report include currently effective policies and policies enacted with an effective date at some point in 2024. While most states’ scheduled state minimum wage rate changes (due to inflation adjustments or statutorily scheduled changes) occur on January 1 of each year, a few states have rate increases scheduled for later in the year.⁷

This report begins with a brief discussion of FLSA minimum wage coverage. It then provides a summary of state minimum wage laws (including for DC), followed by an examination of rates and mechanisms for adjustments in states with minimum wage levels above the FLSA rate. Next, the report discusses the interaction between federal and state minimum wages over time. Appendix B provides selected information on the major components of state minimum wage policies.

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. The FLSA mandates broad minimum wage coverage, but it also specifies certain categories of workers who are not covered by general FLSA wage standards, such as workers with certain disabilities or certain youth workers, and it exempts some workers from its minimum wage provisions (e.g., bona fide executive, administrative, and professional employees). For more information, see CRS In Focus IF12480, The Fair Labor Standards Act (FLSA) Exemption for Executive, Administrative, and Professional (EAP) Employees.

2 An overview of FLSA coverage is in Appendix A.

3 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.

4 29 U.S.C. §218.

5 However, some state laws establish city, county, or regional minimum wage rates (e.g., New York), which are discussed in the report.

6 About 65 localities have enacted minimum wage rates that differ from federal or state rates. University of California- Berkeley Labor Center, Inventory of U.S. City and County Minimum Wage Ordinances, Berkeley, CA, last updated June 27, 2024, https://laborcenter.berkeley.edu/inventory-of-us-city-and-county-minimum-wage-ordinances/#s-1.

7 Effective dates of rate increases are noted in Table 3 and Appendix B.

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The FLSA Minimum Wage

The minimum wage provisions of the FLSA have been amended numerous times since 1938, typically for the purpose of expanding coverage or raising the wage rate. Since its establishment, the minimum wage rate has been raised 22 separate times. The most recent change was enacted in 2007 (P.L. 110-28), which increased the minimum wage from $5.15 per hour to its current rate of $7.25 per hour in three steps.

Figure 1 shows the nominal and real (inflation-adjusted) value of the federal minimum wage from its enactment in 1938 to 2024. The real value of the minimum wage generally rose from 1938 to 1968, after which it has generally fallen in real terms, with some brief increases in value following statutory rate changes. The real value of the minimum wage has decreased since 2009 (when it was last increased).

Figure 1. The Federal Minimum Wage 1938 to 2024

Source: Figure created by CRS using data from the DOL Wage and Hour Division, https://www.dol.gov/whd/ minwage/chart.htm. Notes: The inflation-adjusted minimum wage is expressed in dollars for the first half of 2024 (i.e., January through June 2024) based on the average of the Consumer Price Index for All Urban Consumers (CPI-U), U.S. City Average for January through June 2024.

The FLSA covers all employees working at a site located in a state, DC, or a U.S. territory, which includes Puerto Rico, the U.S. Virgin Islands, American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, Wake Island, Johnston Island, and the Outer Continental Shelf lands. The FLSA does not apply to workers exclusively employed in foreign countries, even if they are employed by an American employer.

Minimum Wage Policies in the States

In 2024, the range of state minimum wage rates is as follows:⁸

8 The state policies covered in this report include currently effective policies and policies enacted with an effective date at some point in 2024. For example, a state with a current minimum wage rate of $12.00 per hour that is scheduled to (continued...)

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• 30 states and DC have enacted minimum wage rates above the federal rate of $7.25 per hour,

• 13 states have minimum wage rates equal to the federal rate,

• 2 states have minimum wage rates below the federal rate, and

• 5 states have no state minimum wage requirement.⁹

In the seven states with no minimum wage requirements or wage rates lower than the federal minimum wage, only individuals who are not covered by the FLSA are subject to those lower rates. The remainder of this report focuses on states with minimum wages above the federal rate.

Wage Rates

In the 30 states and DC with minimum wage rates above the federal rate in 2024, minimum hourly rates range from $8.75 per hour West Virginia to $17.50 per hour in DC. The unweighted average minimum wage is $13.23 per hour and the median minimum wage rate is $13.67 per hour. Currently, seven states—California, Connecticut, Maryland, Massachusetts, New Jersey, New York, and Washington—and DC have minimum wages of at least $15.00 per hour. In addition, six states—Delaware, Florida, Hawaii, Illinois, Nebraska, and Rhode Island—have scheduled rate increases to at least $15.00 per hour at some point between 2024 and 2026.¹⁰

Figure 2 shows the geographic and rate dispersion of state minimum wages. Of the 30 states and DC with minimum wage rates above $7.25,

• 8 states have rates between $8.75 and $11.78 per hour,

• 8 states have rates between $12.00 and $13.67 per hour,

• 7 states have rates between $14.00 and $14.70 per hour, and

• 7 states and DC have rates at or above $15.00 per hour.

In terms of coverage, a majority of the civilian labor force resides in states with a minimum wage rate above the federal rate of $7.25. Specifically, the 30 states and DC with minimum wage rates above $7.25 represent the residence of about 63% of the total civilian labor force in 2023, which means the federal rate is the wage floor in states representing 37% of the civilian labor force.¹¹

increase to $13.00 in 2024 is presented as $13.00 per hour for 2024 even if the scheduled rate increase has not occurred yet. While most states’ scheduled state minimum wage rate changes (due to inflation adjustments or statutorily scheduled changes) occur on January 1 of each year, some states have rate increases scheduled for later in the year.

9 State codes and U.S. Department of Labor, Wage and Hour Division, Minimum Wage Laws in the States, http://www.dol.gov/whd/minwage/america.htm. See Appendix B for details and sources.

10 Some states that use an inflation measure to index the state minimum wage may also increase their rates to at least $15.00 in the next two years if inflation rates are high enough. For example, if the Consumer Price Index - U.S. City Average for All Urban Consumers for All Items (CPI-U) increases by 2% between March 2024 and March 2025 Oregon’s minimum wage will increase from $14.70 to $15.00 on July 1, 2025.

11 The civilian labor force comprises all individuals 16 years old and over residing in the United States who are either employed or unemployed (i.e., not employed but available for and seeking work). This figure—63% of the labor force—is derived from the civilian labor force estimates from the Bureau of Labor Statistics (BLS) Local Area Unemployment Statistics (LAUS) program. Specifically, the 2023 total civilian labor force in each state was summed for the 30 states and DC with a minimum wage higher than the federal minimum wage. This total was then divided by the 2023 civilian labor force for all states and DC.

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Figure 2. State Minimum Wage Rates in 2024

Source: CRS analysis of state minimum wage statutes. See Table B-1 for details. Notes: Rates in this figure are either currently in effect or are scheduled to be in effect at some point in 2024.

Mechanisms for Future Adjustments

The two main approaches to regulating the adjustment of state minimum wage rates in states with rates above the federal minimum are (1) legislatively scheduled increases and (2) indexing to inflation.¹² A few states also add a reference to the federal minimum wage rate as a possible mechanism of adjustment. In this section, states are counted by the primary method of adjustment. While most states use only one adjustment method, 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

Some states that adopt a minimum wage higher than the federal rate only specify a single rate in the enacting legislation and do not provide for future rates. In these cases, the only mechanism for future rate changes is future legislative action. Alternatively, a state may specify a schedule of future rates in legislation through a given date. Rhode Island in 2021, for example, set a rate of $12.25 per hour beginning January 1, 2022, and increasing in steps until the rate is $15.00 per hour in 2025. After the 2025 increase, the rate is to remain at $15.00 per hour until further legislative action. This is the same approach taken in the most recent federal minimum wage

12 States may also not provide any mechanism for future minimum wage changes. Of the 30 states and DC with minimum wages above the federal rate in 2024, six—Arkansas, Maryland, Massachusetts, Nevada, New Mexico, and West Virginia—currently do not provide a mechanism for a future rate adjustment beyond 2024. Table B-1 provides details.

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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.

Of the 30 states and DC with minimum wage rates above the federal rate, 10 have state laws that established a schedule of minimum wage increases.¹³ Of these, six currently have no scheduled increases beyond 2024—Arkansas, Maryland, Massachusetts, Nevada, New Mexico, and West Virginia—and four have legislatively scheduled rate increases after 2024—Delaware, Hawaii, Illinois, and Rhode Island (Table 1).

Table 1. States with Legislatively Scheduled Minimum Wage Increases after 2024

State Schedule of Increases after 2024

Delaware Minimum wage is to increase to $15.00 per hour on January 1, 2025

Hawaii Minimum wage is to increase to $16.00 per hour on January 1, 2026, and to $18.00 per hour on January 1, 2028

Illinois Minimum wage is to increase to $15.00 per hour on January 1, 2025

Rhode Island Minimum wage is to increase to $15.00 per hour on January 1, 2025

Source: CRS analysis of state minimum wage statutes. See Table B-1 for details. Notes: This table does not include states that have scheduled increases, followed by indexation to a measure of inflation in future years. It only includes states that solely use legislatively scheduled rate increases, and have legislatively scheduled rate increases after 2024. For this reason, Florida, Nebraska, and New York are not included in the table.

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.¹⁴ 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.

Currently, 15 states and DC index their minimum wages to a measure of inflation, and another 5 states are scheduled to index state minimum wage rates to a measure of inflation in a future year. Table 2 provides details of the 20 states and DC that currently, or eventually will, use indexation to adjust state minimum wage rates, and shows that

• 6 states—Arizona, Montana, Oregon, South Dakota, Vermont, and Virginia— index the state minimum wage to the national Consumer Price Index for All Urban Consumers (CPI-U);

• 7 states—California, Florida, Michigan, Missouri, New Jersey, Ohio, and Washington—index the state minimum wage to the national Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W);

• 3 states—Alaska, Colorado, and Nebraska—and DC use a subnational version of the CPI-U to index the state minimum wage;

13 This total does not include states that have scheduled increases, followed by indexation to a measure of inflation in future years. It only includes states that solely use legislatively scheduled rate increases.

14 For a detailed discussion of indexing the minimum wage, see CRS Report R44667, The Federal Minimum Wage: Indexation.

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• 2 states—Maine and New York—use a regional version of the CPI-W to index the minimum wage;

• 1 state—Minnesota—uses the implicit price deflator for Personal Consumption Expenditures (PCE) to index the minimum wage; and

• 1 state—Connecticut—uses the Employment Cost Index (ECI) to index the minimum wage.

Table 2. Indexation T ypes in States with Minimum Wages Above the FLSA Rate

State Index Type Index Started Additional Criteria

Alaska CPI-U, Urban Alaska 2017 Rounded up to nearest $.01; minimum wage must be at least $1 above FLSA rate

Arizona CPI-U 2021 Rounded to nearest $.05

California^a CPI-W 2024 Lesser of 3.5% or CPI-W

Colorado CPI-U, Denver MSA 2021 —

Connecticut^b ECI 2024 Rounded to nearest $.01

District of Columbia CPI-U, Washington MSA 2021 Rounded to nearest $.05

Florida CPI-W 2028 —

Maine CPI-W, Northeast 2021 Rounded to nearest $.05

Michigan CPI-W 2029 —

Minnesota PCE 2018 Lesser of 2.5% or CPI-W, rounded to nearest $.01

Missouri CPI-W 2024 Rounded to nearest $.05

Montana CPI-U 2008 Rounded to nearest $.05

Nebraska CPI-U, Midwest 2027 Rounded up to nearest $.05

New Jersey^c CPI-W 2020 —

New York^d CPI-W, Northeast 2027 Rounded to nearest $.05

Ohio CPI-W 2008 Rounded to nearest $.05

Oregon^e CPI-U 2023 Rounded to nearest $.05

South Dakota CPI-U 2016 Rounded up to nearest $.05

Vermont CPI-U 2023 Rounded to nearest $.01

Virginia CPI-U 2025 —

Washington CPI-W 2021 Rounded to nearest $.01

Source: CRS analysis of state minimum wage statutes. See Table B-1 for details. Notes: The start date of indexation refers to the first calendar year in which the rate was adjusted using the index under current law. In some states, the adjustment is based on price changes in the preceding calendar year (e.g., the wage rate for 2024 may be based on the change in prices over the 2022 to 2023 period). a. Effective April 1, 2024, California has a separate minimum wage rate for fast food restaurant employees. Future minimum wage increases for such workers are to be determined by the California Fast Food Council, which may increase the rate annually by the lesser of 3.5% or the rate of change in the CPI-W. The council may elect to set rates that vary by region or set a statewide wage increase. California law also establishes separate minimum wage rates to be paid by certain health care employers; the rates are to take effect on a date between October 1, 2024, and January 1, 2025, depending on several factors. The method

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by which rates are to be increased for such workers depends on the size and characteristics of the employing facility.

b. Connecticut’s index is ECI, Wages and Salaries, All Civilian Workers

c. New Jersey law provided that indexation would begin in 2020, subject to minimum hourly wage rates of $10.00 in 2019 and $11.00 in 2020, and a minimum hourly rate increase of $1.00 between 2021 and 2024.

d. As of January 1, 2024, New York has three minimum wage rates: New York City; the counties of Nassau, Suffolk, and Westchester; and the remainder of the state. Beginning in 2027, the minimum wage is to be adjusted annually by the increase in the three-year moving average of the CPI-W for the Northeast Region. The New York Department of Labor has issued regulations called wage orders that establish industry-specific wage requirements for selected industries, including hospitality (fast food workers), farmworkers, building services, and “miscellaneous”; in general, wage orders provide for scheduled increases in rates for such industries.

e. Oregon has three minimum wage rates: Standard, Portland Metro, and Nonurban. The Standard rate is adjusted annually based on changes in the CPI-U. The Portland Metro rate is to be set at $1.25 above the Standard rate and the Nonurban rate is to be set at $1.00 below the Standard rate.

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. Consequently, any time the federal rate changes, the state rate may also change.¹⁵ Currently, Alaska, Connecticut, and Massachusetts reference the federal minimum wage as a supplement to their primary mechanisms of adjusting state minimum wage rates.¹⁶

• In Alaska, the state minimum wage rate is indexed to the CPI-U for Urban Alaska. However, Alaska state law requires that 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 mechanism is indexation to inflation.

• Connecticut state law requires that the state rate must be increased to one-half of 1% more than federal rate in the event that the federal rate increases above Connecticut’s minimum wage.

• Massachusetts law requires that the state rate must be at least $0.50 above federal minimum wage rate.

15 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 equal to the federal rate, so that the state rate automatically changes when the federal rate changes.

16 DC law required that the DC minimum wage be at least $1 above the federal rate from July 1, 2016, to June 30, 2021. Starting July 1, 2021, the DC rate is indexed to the CPI-U for the Washington Metropolitan Statistical Area and no longer references the federal rate.

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Table 3. Minimum Wage Rates in States with Enacted

Minimum Wage Rates above $7.25

(unless noted otherwise, wage rates in this table take effect on January 1^st of the calendar year)

State 2023 2024 2025 2026 2027 2028 2029

Alaska $10.85 $11.73 CPI-U CPI-U CPI-U CPI-U CPI-U

Arizona $13.85 $14.35 CPI-U CPI-U CPI-U CPI-U CPI-U

Arkansas $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00

California $15.50 $16.00 CPI-W CPI-W CPI-W CPI-W CPI-W

Colorado $13.65 $14.42 CPI-U CPI-U CPI-U CPI-U CPI-U

Connecticut^a $15.00 $15.69 ECI ECI ECI ECI ECI

Delaware $11.75 $13.25 $15.00 $15.00 $15.00 $15.00 $15.00

District of Columbia^b $17.00 $17.50 CPI-U CPI-U CPI-U CPI-U CPI-U

Florida^c $12.00 $13.00 $14.00 $15.00 $15.00 CPI-W CPI-W

Hawaii $12.00 $14.00 $14.00 $16.00 $16.00 $18.00 $18.00

Illinois $13.00 $14.00 $15.00 $15.00 $15.00 $15.00 $15.00

Maine $13.80 $14.15 CPI-W CPI-W CPI-W CPI-W CPI-W

Maryland^d $13.25 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00

Massachusetts^e $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00

Michigan^f $10.10 $10.33 CPI-W CPI-W CPI-W CPI-W CPI-W

Minnesota^g $10.59 $10.85 PCE PCE PCE PCE PCE

Missouri $12.00 $12.30 CPI-W CPI-W CPI-W CPI-W CPI-W

Montana $9.95 $10.30 CPI-U CPI-U CPI-U CPI-U CPI-U

Nebraska $10.50 $12.00 $13.50 $15.00 CPI-U CPI-U CPI-U

Nevada^h $11.25 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00

New Jerseyⁱ $14.13 $15.13 CPI-W CPI-W CPI-W CPI-W CPI-W

New Mexico $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00

New York^j $14.20 $15.00 $15.50 $16.00 CPI-W CPI-W CPI-W

Ohio $10.10 $10.45 CPI-W CPI-W CPI-W CPI-W CPI-W

Oregon^k $14.20 $14.70 CPI-U CPI-U CPI-U CPI-U CPI-U

Rhode Island $13.00 $14.00 $15.00 $15.00 $15.00 $15.00 $15.00

South Dakota $10.80 $11.20 CPI-U CPI-U CPI-U CPI-U CPI-U

Vermont $13.18 $13.67 CPI-U CPI-U CPI-U CPI-U CPI-U

Virginia $12.00 $12.00 CPI-U CPI-U CPI-U CPI-U CPI-U

Washington $15.74 $16.28 CPI-W CPI-W CPI-W CPI-W CPI-W

West Virginia $8.75 $8.75 $8.75 $8.75 $8.75 $8.75 $8.75

Source: Minimum wage rates are from U.S. Department of Labor, http://www.dol.gov/whd/minwage/ america.htm and state websites; 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.

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Notes: In this table, cells with “CPI-U,” “CPI-W,” or “PCE” indicate that the state minimum rate is indexed to the relevant inflation measure in those years. a. The Connecticut minimum wage must be the higher of the state rate or one-half of one cent more than the prevailing federal rate.

b. Annual adjustments to the DC minimum wage take effect on July 1.

c. Future scheduled rate increases in Florida begin on September 30. Starting January 1, 2028, Florida’s minimum wage is scheduled to be adjusted annually by changes in the CPI-W, with future effective dates of January 1.

d. The 2023 minimum wage for Maryland in this table is for large employers, which are defined as any employer employing 15 or more employees. For employers with 14 or fewer employees, the minimum wage was 2023 is $12.80 per hour. As of January 1, 2024, the minimum wage for all employers is $15.00.

e. The Massachusetts minimum wage must be the higher of the state rate or at least $0.50 per hour higher than the prevailing federal rate.

f. Due to a recent Michigan Supreme Court decision, Michigan’s minimum wage will be determined according to a rate schedule, adjusted for inflation, that was included on a ballot initiative approved by Michigan voters for inclusion on the state’s November 2018 ballot. Due to actions taken by the Michigan legislature to adopt and amend the initiative (to provide for lower minimum wage rates), the initiative was not included on the ballot. These actions were challenged and on July 31, 2024, the Michigan Supreme Court ruled that while the state legislature’s adoption of the original initiative was allowed under Michigan’s Constitution, amendments made to the initiative were not. The court therefore held that the (unamended) initiative must take effect, and provided for a phase-in of inflation-adjusted scheduled wage rates between February 21, 2025, and February 21, 2028. For example, the court provided that on February 21, 2025, the minimum hourly wage will be “$10.00 plus the state treasurer’s inflation adjustment, using July 31, 2024, as the endpoint for that calculation.”

g. The 2023 and 2024 minimum wage rates for Minnesota in this table are for 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.” The minimum wage for small employers (defined as enterprises “whose annual gross volume of sales made or business done is less than $500,000”) was $8.63 in 2023 and is $8.85 as of January 1, 2024. Starting January 1, 2025, the Minnesota minimum wage will be the same for large and small employers.

h. The 2023 minimum wage rate for Nevada in this table is for workers who do not receive qualified health benefits from their employer. The minimum wage for workers receiving qualified health benefits is $1.00 less per hour. In 2022, Nevada voters approved Ballot Question 2, which eliminated the two-tier minimum wage system and created a single minimum wage rate of $12.00 per hour effective July 1, 2024.

i. New Jersey has multiple minimum wage rates. The rates in this table apply to most employers but different rates exist for seasonal and small employers ($13.73 in 2024), agricultural employers ($12.81 in 2024), and direct care workers in long-term care facilities ($18.13 in 2024). In addition, under New Jersey law the effective minimum wage rate for any given year is the highest of the federal minimum wage rate, the scheduled minimum wage rate established in statute, or the minimum wage rate adjusted by annual changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

j. As of January 1, 2024, New York has three minimum wage rates: New York City; the counties of Nassau, Suffolk, and Westchester; and the remainder of the state. Beginning in 2027, the minimum wage is to be adjusted annually by the increase in the three-year moving average of the CPI-W for the Northeast Region. The New York Department of Labor has issued regulations called wage orders that establish industry-specific wage requirements for selected industries, including hospitality (fast food workers), farmworkers, building services, and “miscellaneous”; in general, wage orders provide for scheduled increases in rates for such industries.

k. Oregon has three minimum wage rates: Standard, Portland Metro, and Nonurban Counties. The rate in this table is the Standard rate. Future rate increases begin on July 1.

Trends in State Minimum Wages

The number of states and the share of the labor force covered by rates higher than the federal minimum wage can change annually. In general, during past periods in which the federal minimum wage has remained constant, more states have enacted higher minimum wage rates and

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the share of the workforce for which the federal rate serves as the floor likewise has decreased. When the federal rate has increased, some state rates have become equal to or less than the federal rate.

Figure 3 shows the percentage of the civilian labor force residing in states in which the federal wage served as the floor over the 1983 to 2023 period.¹⁷ If no state had a minimum wage above the federal rate, then 100% of the labor force would reside in states in which the federal minimum wage is the wage floor. Similarly, if every state had a minimum wage above the current rate of $7.25, then 0% of the labor force would reside in states in which the federal minimum wage is the binding rate. Instead, the interaction of federal and state rates has led to the federal minimum wage playing a fluctuating, but generally decreasing, role in establishing a wage floor for the civilian labor force, particularly during periods in which the federal rate was not increased.¹⁸

Figure 3. How Binding is the Federal Minimum Wage?

(the share of the U.S. labor force residing in states in which the federal minimum wage is the wage floor)

Source: CRS analysis of U.S. Department of Labor, Wage and Hour Division, Changes in Basic Minimum Wages in Non-Farm Employment Under State Law: Selected Years 1968-2023, Washington, DC, https://www.dol.gov/agencies/ whd/state/minimum-wage/history, and state government websites, multiple years. Notes: Prior to 1993, DC did not have a broad minimum wage covering the general population. 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 these data, DC has maintained a minimum wage above the federal rate for the entire 1983-2023 period.

17 The prevailing federal minimum wage and state minimum wages go into effect at various points in a given year. As a result, the number of states with higher minimum wages may be different on January 1 of a given year than on December 31 of that same year. To avoid complications of within-year changes, the discussion in this section is 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, DC is counted as a state for simplicity of presentation. 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.

18 The figure shows some periods in which the share residing in states with a binding federal minimum wage does not appear to change (e.g., between 2015 and 2020). This does not imply that states were not changing their wage rates during this period. Instead, it may show that state policy changes were concentrated in states with a minimum wage rate that is already above the federal rate.

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Examining the specific time periods around changes in the federal minimum wage (see Figure 1 for the history of federal minimum wage rate changes), data in Figure 3 show 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 temporarily mitigated this reduction, as did earlier changes in the federal rate.

• 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 about 10% of the civilian labor force, with minimum wages above the federal rate. After 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 2022, this rose to 30 states and DC, which means that the federal rate is the wage floor in states representing 37% of the civilian labor force.

Figure 4 provides another way to measure the growing discrepancy between state minimum wages and the FLSA rate. Specifically, since 2009—the last time the FLSA rate increased—the 30 states and DC with rates above $7.25 in 2024 have seen increased minimum wage rates ranging between 21% and 112%. For example, New Jersey, which had a minimum wage equal to the FLSA rate of $7.25 in 2009, has a rate of $15.13 in 2024, an increase of 109%. Of the 30 states and DC with rates above $7.25, 16 states had rates of $7.25 or less in 2009. Unlike the FLSA rate, which has remained the same since 2009, rates in these 16 states in 2024 range from $1.50 (West Virginia) to $7.88 (New Jersey) above $7.25.

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Figure 4. Percentage Change in State Minimum Wage Rates, 2009-2024

State Rates in States with Minimum Wages Above $7.25 in 2024

Source: CRS analysis of U.S. Department of Labor, Wage and Hour Division, Changes in Basic Minimum Wages in Non-Farm Employment Under State Law: Selected Years 1968-2024, Washington, DC, https://www.dol.gov/agencies/ whd/state/minimum-wage/history; and state government websites, multiple years. Notes: Calculations are based on the highest minimum wage rates in each calendar year. The federal minimum wage was last increased in 2009.

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Appendix A. Fair Labor Standards Act Coverage

The FLSA extends two types of minimum wage coverage to employees: “enterprise coverage” and “individual coverage.”¹⁹ An employee is covered if he or she meets the criteria for either category.

Enterprise Coverage

An enterprise is covered by the act if it has at least two employees and “annual sales or business done” of at least $500,000.²⁰ Annual sales or business done includes all business activities that can be measured in dollars. For example, retailers are covered by the FLSA if their annual sales are at least $500,000.²¹ 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.²²

Regardless of the dollar volume of business, the act applies to hospitals; institutions primarily engaged in the care of the sick, aged, mentally ill, or disabled who reside on the premises; schools for children who are mentally or physically disabled or gifted; federal, state, and local governments; and preschools, elementary and secondary schools, and institutions of higher education.²³

All employees of a covered enterprise are considered to be covered by the FLSA.

Individual Coverage

Although an enterprise may not be subject to FLSA minimum wage requirements, employees of the enterprise may be covered if they are individually engaged in interstate commerce or in the production of goods for interstate commerce. Such employees may produce goods to be shipped out of state, provide services (e.g., janitorial work) in buildings that produce goods for interstate commerce, travel to other states for work, make phone calls or send emails to persons in other states, or handle records that are involved in interstate transactions.²⁴

Some employees may be covered by the FLSA but exempted from one or more of its provisions. For example, certain executive, administrative, and professional workers are exempt from the act’s overtime pay and minimum wage provisions.²⁵ The act also provides for several subminimum wage rates (i.e., lower wage rates than the federal minimum wage). If certain conditions are met, employers may pay lower minimum wage rates to tipped employees; some workers with disabilities; new hires under the age of 20; full-time students who work in retail or

19 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.

20 29 C.F.R. §§779.258-779.259.

21 The $500,000 threshold refers to the annual gross volume of sales. It is not a measure of net revenue or profits.

22 U.S. Department of Labor, Fact Sheet #5: Real Estate and Rental Agencies Under the Fair Labor Standards Act (FLSA), https://www.dol.gov/agencies/whd/fact-sheets/5-flsa-real-estate.

23 29 U.S.C. §203(s)(1).

24 U.S. Department of Labor, Coverage Under the Fair Labor Standards Act, https://www.dol.gov/agencies/whd/fact- sheets/14-flsa-coverage.

25 For more information, see CRS In Focus IF12480, The Fair Labor Standards Act (FLSA) Exemption for Executive, Administrative, and Professional (EAP) Employees.

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service establishments, agriculture, or institutions of higher education; and high school students who are at least 16 years old and enrolled in a vocational education program.

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Appendix B. Selected Characteristics of State Minimum Wage Policies

Table B-1 provides detailed information about minimum wage policies in the 50 states and DC, including states that do not have minimum wage rates above the federal rate in 2024.

The 20 states with minimum wage rates equal to or below the federal rate do not have policies in place to move rates above the federal rate. A main policy difference within this group of states is the relationship of the state rate, if any, to the federal rate. For those 20 states with minimum wages equal to or below the federal rate, the state rate may be set in four ways:²⁶

• 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: Five states—Idaho, Indiana, New Hampshire, Oklahoma, and Texas—set the state rate equal to the FLSA rate. Thus, when the FLSA rate changes, the state rates in these five 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.

26 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 B-1. Selected State Minimum Wage Policies

As of January 1, 2024 (unless otherwise noted)

State

State Legislation

or Policy Citation Pertinent Language and Notes

Alabama No state minimum wage law

n/a

Alaska Alaska Statute 23.10.065

“(a) Except as otherwise provided for in law, an employer shall pay to each employee a minimum wage, as established herein, for hours worked in a pay period, whether the work is measured by time, piece, commission or otherwise. An employer may not apply tips or gratuities bestowed upon employees as a credit toward payment of the minimum hourly wage required by this section. Tip credit as defined by the Fair Labor Standards Act of 1938 as amendment does not apply to the minimum wage established by this section. Beginning with the passage of this Act, the minimum wage shall be $8.75 per hour effective January 1, 2015, $9.75 per hour effective January 1, 2016 and thereafter adjusted annually for inflation. The adjustment shall be calculated each September 30, for the proceeding January-December calendar year, by the Alaska Department of Labor and Workforce Development, using 100 percent of the rate of inflation based on the Consumer Price Index for all urban consumers for the Anchorage metropolitan area, 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 shall apply to work performed beginning on January 1 through December 31 of the year for which it is effective. …

(d) If the minimum wage determined under (a) of this section is less than one dollar over the federal minimum wage, the Alaska minimum wage shall be set at one dollar over the federal minimum wage. This amount shall be adjusted in subsequent years by the method established in (a) of this section.”

Arizona Arizona Revised Statutes, 23-363

“A. Employers shall pay employees no less than the minimum wage, which shall be not less than: ...

4. $12 on and after January 1, 2020.

B. The minimum wage shall be increased on January 1, 2021 and on January 1 of successive years, by the increase in the cost of living. The increase in the cost of living shall be measured by the percentage increase as of August of the immediately preceding year over the level as of August of the previous year of the consumer price index (all urban consumers, U.S. city average for all items) or its successor index as published by the U.S. department of labor or its successor agency, with the amount of the minimum wage increase rounded to the nearest multiple of five cents.”

Arkansas Arkansas Code Annotated. §11-4-210

“(a)(3) Beginning January 1, 2019, every employer shall pay each of his or her employees’ wages at the rate of not less than nine dollars and twenty-five cents ($9.25) per hour, beginning January 1, 2020 the rate of not less than ten dollars ($10.00) per hour and beginning January 1, 2021 the rate of not less than eleven dollars ($11.00) per hour except as otherwise provided in this subchapter.”

CRS-17

State

State Legislation

or Policy Citation Pertinent Language and Notes

California California Labor Code 1182.12

“(b) Notwithstanding any other provision of this part, on and after July 1, 2014, the minimum wage for all industries shall be not less than nine dollars ($9.00) per hour, and on and after January 1, 2016, the minimum wage for all industries shall be not less than ten dollars ($10.00) per hour.

(1) For any employer who employs 26 or more employees, the minimum wage shall be as follows:

(F) From January 1, 2022, and until adjusted by subdivision (c)—fifteen dollars ($15) per hour.

(2) For any employer who employs 25 or fewer employees, the minimum wage shall be as follows:

(E) From January 1, 2022, to December 31, 2022, inclusive,—fourteen dollars ($14) per hour.

(F) From January 1, 2023, and until adjusted by subdivision (c)—fifteen dollars ($15) per hour.

(c) (1) Following the implementation of the minimum wage increase specified in subparagraph (F) of paragraph (2) of subdivision (b), on or before August 1 of that year, and on or before each August 1 thereafter, the Director of Finance shall calculate an adjusted minimum wage. The calculation shall increase the minimum wage by the lesser of 3.5 percent and the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted United States Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W). The result shall be rounded to the nearest ten cents ($0.10). Each adjusted minimum wage increase calculated under this subdivision shall take effect on the following January 1.”

Colorado

Colo. Const. Art. XVIII, Section 15

“Effective January 1, 2017, Colorado’s minimum wage is increased to $9.30 per hour and is increased annually by $0.90 each January 1 until it reaches $12 per hour effective January 2020, and thereafter is adjusted annually for cost of living increases, as measured by the Consumer Price Index used for Colorado. This minimum wage shall be paid to employees who receive the state or federal minimum wage.”

Connecticut

Connecticut State Statutes Section 31-58

“(1) A wage of... effective August 1, 2021, not less than thirteen dollars per hour, and effective July 1, 2022, not less than fourteen dollars per hour, and effective June 1, 2023, not less than fifteen dollars per hour. On October 15, 2023, and on each October fifteenth thereafter, the Labor Commissioner shall announce the adjustment in the minimum fair wage which shall become the new minimum fair wage and shall be effective on January first immediately following. On January 1, 2024, and not later than each January first thereafter, the minimum fair wage shall be adjusted by the percentage change in the employment cost index, or its successor index, for wages and salaries for all civilian workers, as calculated by the United States Department of Labor, over the twelve-month period ending on June thirtieth of the preceding year, rounded to the nearest whole cent.

(2) In no event shall the minimum fair wage be less than the amount established under subdivision (1) of this subsection, or one-half of one per cent rounded to the nearest whole cent more than the highest federal minimum wage, whichever is greater, except as may otherwise be established in accordance with the provisions of this part.”

Delaware

Delaware Code Title 19-902

“(a) Except as may otherwise be provided under this chapter, every employer shall pay to every employee in any occupation wages of a rate: ... (3) Not less than $11.75 per hour effective January 1, 2023; (4) Not less than $13.25 per hour effective January 1, 2024; (5) Not less than $15.00 per hour effective January 1, 2025.

Upon the establishment of a federal minimum wage in excess of the state minimum wage, the minimum wage in this State shall be equal in amount to the federal minimum wage, except as may otherwise be provided under this chapter.”

CRS-18

State

State Legislation

or Policy Citation Pertinent Language and Notes

District of Columbia

D.C. Code Section 32- 1003

“(5)(A) Except as provided in subsection (h) of this section and subparagraph (B) of this paragraph, the minimum hourly wage required to be paid to an employee by an employer shall be as of: ...

(v) July 1, 2020: $15.00.

(B) If the minimum wage set by the United States government pursuant to the Fair Labor Standards Act (”U.S. minimum wage”) is greater than the minimum hourly wage currently being paid pursuant to subparagraph (A) of this paragraph, the minimum hourly wage paid to an employee by an employer shall be the U.S. minimum wage plus $1.

(6)(A) Except as provided in subsection (h) of this section, beginning on July 1, 2021, 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.”

Florida

Florida Constitution, Article X, Section 24

Florida Labor Statute 448-110 (4)(a)

“(c) ... Effective September 30^th, 2021, the existing state Minimum Wage shall increase to $10.00 per hour, and then increase each September 30th thereafter by $1.00 per hour, until the Minimum Wage reaches $15.00 per hour on September 30th, 2026. On September 30th of 2027 that year and on each following September 30th, the state Agency for Workforce Innovation shall calculate an adjusted Minimum Wage rate by increasing the current Minimum Wage rate by the rate of inflation during the twelve months prior to each September 1st using the consumer price index for urban wage earners and clerical workers, CPI-W, or a successor index as calculated by the United States Department of Labor. Each adjusted Minimum Wage rate calculated shall be published and take effect on the following January 1st.”

Georgia

Georgia Code 34-4-3 “(a) Except as otherwise provided in this Code section, every employer, whether a person, firm, or corporation, shall pay to all 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

Hawaii Revised Statutes 387-2

“(a) Except as provided in section 387-9 and this section, every employer shall pay to each employee employed by the employer, wages at the rate of not less than: ...

(8) $12.00 per hour beginning October 1, 2022.

(9) $14.00 per hour beginning January 1, 2024.

(10) $16.00 per hour beginning January 1, 2026.

(11) $18.00 per hour beginning January 1, 2028.”

Idaho

Idaho Statutes 44-1502 “MINIMUM WAGES. (1) Except as hereinafter otherwise provided, no employer shall pay to any of his employees any wages computed at a rate of less than seven dollars and twenty-five cents ($7.25) per hour for employment. The amount of the minimum wage shall conform to, and track with, the federal minimum wage.”

Illinois

Illinois Compiled Statutes 820-105/4

“from January 1, 2024 through December 31, 2024, every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $14 per hour; and on and after January 1, 2025, every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $15 per hour."

Indiana Indiana Code 22-2-2-4 “(c) Except as provided in subsection (d), every employer employing at least two (2) employees during a work week shall, in any work week in which the employer is subject to this chapter, pay each of the employees in any work week beginning on or after June 30, 2007, wages of not less than the minimum wage payable under the federal Fair Labor Standards Act of 1938, as amended (29 U.S.C. 201 et seq.).”

CRS-19

State

State Legislation

or Policy Citation Pertinent Language and Notes

Iowa Iowa Code 91D.1 “1. a. The state hourly wage shall be at least $6.20 as of April 1, 2007, and $7.25 as of January 1, 2008.

b. Every employer, as defined in the federal Fair Labor Standards Act of 1938, as amended to January 1, 2007, shall 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 Kansas Statute 44-1203 “Except as otherwise provided in the minimum wage and maximum hours law, every employer shall pay to each employee wages at a rate as follows: (2) on and after January 1, 2010, employee wages shall be paid at a rate of not less than $7.25 an hour.”

Kentucky Kentucky Revised Code 337.275

“Except as may otherwise be provided by this chapter, every employer shall pay to each of his employees wages at a rate of not less than five dollars and eighty- five cents ($5.85) an hour beginning on June 26, 2007, not less than six dollars and fifty-five cents ($6.55) an hour beginning July 1, 2008, and not less than seven dollars and twenty-five cents ($7.25) an hour beginning July 1, 2009. If the federal minimum hourly wage as prescribed by 29 U.S.C. sec. 206(a)(1) is increased in excess of the minimum hourly wage in effect under this subsection, the minimum hourly wage under this subsection shall be increased to the same amount, effective on the same date as the federal minimum hourly wage rate.”

Louisiana No state minimum wage law

n/a

Maine Maine Revised Statutes 26, Section 664 (1)

“1. Minimum wage.... starting January 1, 2020, the minimum hourly wage is $12.00 per hour. On January 1, 2021 and each January 1^st thereafter, the minimum hourly wage then in effect must be increased by the increase, if any, in the cost of living. The increase in the cost of living must be measured by the percentage increase, if any, as of August of the previous year over the level as of August of the year preceding that year in the Consumer Price Index for Urban Wage Earners and Clerical Workers, CPI-W, for the Northeast Region, or its successor index, as published by the United States Department of Labor, Bureau of Labor Statistics or its successor agency, with the amount of the minimum wage increase rounded to the nearest multiple of 5¢. If the highest federal minimum wage is increased in excess of the minimum wage in effect under this section, the minimum wage under this section is increased to the same amount, effective on the same date as the increase in the federal minimum wage, and must be increased in accordance with this section thereafter.”

Maryland Maryland Labor and Employment Code 3-413

“(a)(1) In this section the following words have the meanings indicated.

(2) “Employer” includes a governmental unit. (3) “Small employer” means an employer that employs 14 or fewer employees.

(b) Except as provided in subsection (d) of this section and §§ 3–413.1 and 3–414 of this subtitle, each employer shall pay:

(1) to each employee who is subject to both the federal Act and this subtitle, at least the greater of:

(i) the minimum wage for that employee under the federal Act; or (ii) the State minimum wage set under subsection (c) of this section; and

(2) to each other employee who is subject to this subtitle, at least the greater of:

(i) the highest minimum wage under the federal Act; or (ii) the State minimum wage set under subsection (c) of this section.

(c)(1) Subject to § 3–413.1 of this subtitle and except as provided in paragraph (2) of this subsection, the State minimum wage rate is:

(i) for the 12–month period beginning January 1, 2023, $13.25 per hour; and (ii) beginning January 1, 2024, $15.00 per hour.

(2) Subject to § 3–413.1 of this subtitle, the State minimum wage rate for a small employer is: ...

(i) for the 12–month period beginning January 1, 2023, $12.80 per hour; and (ii) beginning January 1, 2024, $15.00 per hour.”

CRS-20

State

State Legislation

or Policy Citation Pertinent Language and Notes

Massachusetts Massachusetts General Laws Chapter 151, Section 1

“Section 1. It is hereby declared to be against public policy for any employer to employ any person in an occupation in this commonwealth at an oppressive and unreasonable wage as defined in section two, and any contract, agreement or understanding for or in relation to such employment shall be null and void. A wage of less than $15.00 per hour, in any occupation, as defined in this chapter, shall conclusively be presumed to be oppressive and unreasonable, wherever the term ’minimum wage’ is used in this chapter, unless the commissioner has expressly approved or shall expressly approve the establishment and payment of a lesser wage under the provisions of sections seven and nine. Notwithstanding the provisions of this section, in no case shall the minimum wage rate be less than $.50 higher than the effective federal minimum rate.”

Michigan Michigan Compiled Laws 408.934

Mothering Justice vs. Attorney General, (Michigan Supreme Court, 2024).

On July 31, 2024, the Michigan Supreme Court determined that a procedure used by the Michigan legislature to “adopt and amend” two ballot initiatives concerning Michigan’s minimum wage and paid sick leave laws was unconstitutional, and reverted the laws back to the original initiatives. The terms of the ballot initiatives are to be reinstated as law on February 21, 2025. As a result, the minimum wage is to be increased annually on February 21^st to scheduled wage rates, adjusted for inflation by the state treasurer, from 2025 through 2028. Thereafter, the wage rate is to be adjusted for inflation using the consumer price index for urban wage earners and clerical workers (CPI-W) or a successor index published by the BLS.

The court’s decision provides the following wage schedule: “The publication date for this opinion is July 31, 2024. Thus, the Wage Act and the Earned Sick Time Act will go into effect on February 21, 2025. The schedule for the minimum hourly wage and tip credit is therefore as follows:

February 21, 2025 (originally 2019): The minimum hourly wage will be $10.00 plus the state treasurer’s inflation adjustment, using July 31, 2024, as the endpoint for that calculation. The tip credit will be 48% of minimum wage.

February 21, 2026 (originally 2020): The minimum hourly wage will be $10.65 plus the state treasurer’s inflation adjustment, using July 31, 2024, as the endpoint for that calculation. The tip credit will be 60% of minimum wage.

February 21, 2027 (originally 2021): The minimum hourly wage will be $11.35 plus the state treasurer’s inflation adjustment, using July 31, 2024, as the endpoint for that calculation. The tip credit will be 70% of minimum wage.

February 21, 2028 (originally 2022): The minimum hourly wage will be $12.00 plus the state treasurer’s inflation adjustment, using July 31, 2024, as the endpoint for that calculation. The tip credit will be 80% of minimum wage.

February 21, 2029 (originally 2023 and after): The state treasurer shall calculate the inflation-adjusted minimum wage as set forth in 2018 PA 337, § 4(2). The tip credit will no longer exist.”

CRS-21

State

State Legislation

or Policy Citation Pertinent Language and Notes

Minnesota Minnesota Statutes 177.24

Current Law:

“(a) For purposes of this subdivision, the terms defined in this paragraph have the meanings given them.

(1) ‘Large employer’ means an enterprise 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, sections 177.21 to 177.35. (2) ‘Small employer’ means an enterprise whose annual gross volume of sales made or business done is 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, sections 177.21 to 177.35.

(b) Except as otherwise provided in sections 177.21 to 177.35:

(1) every large employer must pay each employee wages at a rate of at least: ...

(iii) $9.50 per hour beginning August 1, 2016; and (iv) the rate established under paragraph (f) beginning January 1, 2018; and

(2) every small employer must pay each employee at a rate of at least: ...

(iii) $7.75 per hour beginning August 1, 2016; and (iv) the rate established under paragraph (f) beginning January 1, 2018....

(f) No later than August 31 of each year, beginning in 2017, the commissioner shall determine the percentage increase in the rate of inflation, as measured by the implicit price deflator, national data for personal consumption expenditures as determined by the United States Department of Commerce, Bureau of Economic Analysis during the 12-month period immediately preceding that August or, 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.”

Effective January 1, 2025 (paragraph (c) effective August 1, 2024):

“(a) Except as otherwise provided in sections 177.21 to 177.35, every employer must pay each employee wages at a rate of at least: …

(4) the rate established under paragraph (c) beginning January 1, 2018; …

(c) No later than August 31 of each year the commissioner shall determine the percentage increase in the rate of inflation, as measured by the implicit price deflator, national data for personal consumption expenditures as determined by the United States Department of Commerce, Bureau of Economic Analysis during the 12-month period immediately preceding that August or, if that data is unavailable, during the most recent 12-month period for which data is available. The minimum wage rates in paragraphs (a) and (b) are increased by the lesser of: (1) 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 No state minimum wage law

n/a

CRS-22

State

State Legislation

or Policy Citation Pertinent Language and Notes

Missouri Missouri Revised Statutes 290.502

“2. … On September 30, 2007, and on each September 30 of each successive year, the director shall measure the increase or decrease in the cost of living by the percentage increase or decrease as of the preceding July over the level as of July of the immediately preceding year of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) or successor 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.

3. Except as may be otherwise provided pursuant to sections 290.500 to 290.530, and notwithstanding subsection 1* of this section, effective January 1, 2019, every employer shall pay to each employee wages at the rate of not less than $8.60 per hour, or wages at the same rate or rates set under the provisions of federal law as the prevailing federal minimum wage applicable to those covered jobs in interstate commerce, whichever rate per hour is higher. Thereafter, the minimum wage established by this subsection shall be increased each year by $.85 per hour, effective January 1 of each of the next four years, until it reaches $12.00 per hour, effective January 1, 2023. Thereafter, the minimum wage established by this subsection shall be increased or decreased on January 1, 2024, and on January 1 of successive years, per the method set forth in subsection 2** of this section. If at any time the federal minimum wage rate is above or is thereafter increased above the minimum wage then in effect under this subsection, the minimum wage required by this subsection shall continue to be increased pursuant to this subsection ***, but the higher federal rate shall immediately become the minimum wage required by this subsection and shall be increased or decreased per the method set forth in subsection 2** for so long as it remains higher than the state minimum wage required and increased pursuant to this subsection.”

Montana Montana Code Annotated 39-3-409

“(1) The minimum wage, except as provided in subsection (3), must be the greater of either:

(a) the minimum hourly wage rate as provided under the federal Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)), excluding the value of tips received by the employee and the special provisions for a training wage; or (b) $6.15 an hour, excluding the value of tips received by the employee and the special provisions for a training wage.

(2)(a) The minimum wage is subject to a cost-of-living adjustment, as provided in subsection (2)(b).

(b) No later than September 30 of each year, an adjustment of the wage amount specified in subsection (1) must be made based upon the increase, if any, from August of the preceding year to August of the year in which the calculation is made in the consumer price index, U.S. city average, all urban consumers, for all items, as published by the bureau of labor statistics of the United States department of labor. (c) The wage amount established under this subsection (2):

(i) must be rounded to the nearest 5 cents; and (ii) becomes effective as the new minimum wage, replacing the dollar figure specified in subsection (1), on January 1 of the following year.

(3) The minimum wage rate for a business whose annual gross sales are $110,000 or less is $4 an hour.”

CRS-23

State

State Legislation

or Policy Citation Pertinent Language and Notes

Nebraska Nebraska Revised Statutes 48-1203

“(1) Except as otherwise provided in this section and section 48-1203.01, every employer shall pay to each of his or her employees a minimum wage of: ...

(c) Twelve dollars per hour on and after January 1, 2024, through December 31, 2024;

(d) Thirteen dollars and fifty cents per hour on and after January 1, 2025, through December 31, 2025; and

(e) Fifteen dollars per hour on and after January 1, 2026, through December 31, 2026.

(2) The minimum wage established in subdivision (1)(e) of this section shall be increased on January 1, 2027, and on January 1 of successive years, by the increase in the cost of living. The increase in the cost of living shall be measured by the percentage increase, if any, as of August of the previous year over the level as of August of the year preceding that year in the consumer price index for all urban consumers (CPI-U) for the Midwest Region, or its successor index, as published by the U.S. Department of Labor, or its successor agency, with the amount of the minimum wage increase rounded up to the nearest multiple of five cents. No later than October 15 of each year, commencing October 15, 2026, the Nebraska Department of Labor shall calculate and publish the minimum wage rate that will take effect the following January 1.”

Nevada Nevada Constitution Article 15 Sect. 16

Nevada Revised Statutes 608.250

“Sec. 16. Payment of minimum compensation to employees.

1. Except as otherwise provided in this section, beginning July 1, 2024, each employer shall pay a wage to each employee of not less than twelve dollars ($12) per hour worked.

2. If, at any time, the amount of the federal minimum wage is greater than twelve dollars ($12) per hour worked, each employer must pay a wage to each employee of not less than the hourly rate established for the federal minimum wage.

3. The Legislature may establish by law a minimum wage that an employer must pay to each employee that is greater than the hourly rate required by this section.”

New Hampshire

New Hampshire Revised Statutes 279:21

“Unless otherwise provided by statute, no person, firm, or corporation shall employ any employee at an hourly rate lower than that set forth in the federal minimum wage law, as amended.”

New Jersey New Jersey Legislative Statutes 34:11-56a4

“5. a. Except as provided in subsections c., d., e. and g. of this section, each employer shall pay to each of his employees wages at a rate of not less than $8.85 per hour as of January 1, 2019 and, on January 1 of 2020 and January 1 of each subsequent year, the minimum wage shall be increased by any increase in the consumer price index for all urban wage earners and clerical workers (CPI-W) as calculated by the federal government for the 12 months prior to the September 30 preceding that January 1, except that any of the following rates shall apply if it exceeds the rate determined in accordance with the applicable increase in the CPI- W for the indicated year: on July 1, 2019, the minimum wage shall be $10.00 per hour; on January 1, 2020, the minimum wage shall be $11.00 per hour; and on January 1 of each year from 2021 to 2024, inclusive, the minimum wage shall be increased from the rate of the preceding year by $1.00 per hour. If the federal minimum hourly wage rate set by section 6 of the federal "Fair Labor Standards Act of 1938" (29 U.S.C. s.206), or a successor federal law, is raised to a level higher than the State minimum wage rate set by this subsection, then the State minimum wage rate shall be increased to the level of the federal minimum wage rate and subsequent increases based on increases in the CPI-W pursuant to this section shall be applied to the higher minimum wage rate.”

New Mexico New Mexico Statutes 50- 4-22

“A. Except as provided in Subsection C of this section, an employer shall pay to an employee a minimum wage rate of: ... (5) on and after January 1, 2023, at least twelve dollars ($12.00) an hour.”

CRS-24

New York New York Labor Law, Minimum Wage Act, Article 19, Section 652

“1-a. Annual minimum wage from January 1, 2024 to December 31, 2026. (a) New York city. Notwithstanding subdivision one of this section, every employer regardless of size shall pay to each of its employees for each hour worked in the city of New York a wage of not less than:

$16.00 on and after January 1, 2024, $16.50 on and after January 1, 2025, $17.00 on and after January 1, 2026, or, if greater, such other wage as may be established by federal law pursuant to 29 U.S.C. section 206 or its successors or such other wage as may be established in accordance with the provisions of this article.

(b) Remainder of downstate. Notwithstanding subdivision one of this section, every employer shall pay to each of its employees for each hour worked in the counties of Nassau, Suffolk, and Westchester, a wage of not less than:

$16.00 on and after January 1, 2024, $16.50 on and after January 1, 2025, $17.00 on and after January 1, 2026, or, if greater, such other wage as may be established by federal law pursuant to 29 U.S.C. section 206 or its successors or such other wage as may be established in accordance with the provisions of this article.

(c) Remainder of state. Notwithstanding subdivision one of this section, every employer shall pay to each of its employees for each hour worked outside the city of New York and the counties of Nassau, Suffolk, and Westchester, a wage of not less than:

$15.00 on and after January 1, 2024, $15.50 on and after January 1, 2025, $16.00 on and after January 1, 2026, or, if greater, such other wage as may be established by federal law pursuant to 29 U.S.C. section 206 or its successors or such other wage as may be established in accordance with the provisions of this article.

1-b. Annual minimum wage increase beginning on January first, two thousand twenty-seven. (a) New York city. On and after January first, two thousand twenty-seven, every employer regardless of size shall pay to each of its employees for each hour worked in the city of New York, a wage of not less than the adjusted minimum wage rate established annually by the commissioner. Such adjusted minimum wage rate shall be determined by increasing the then current year’s minimum wage rate by the rate of change in the average of the three most recent consecutive twelve-month periods between the first of August and the thirty-first of July, each over their preceding twelve-month periods published by the United States department of labor non-seasonally adjusted consumer price index for northeast region urban wage earners and clerical workers (CPI-W) or any successor index as calculated by the United States department of labor, with the result rounded to the nearest five cents. (b) Remainder of downstate. On and after January first, two thousand twenty-seven, every employer shall pay to each of its employees for each hour worked in the counties of Nassau, Suffolk, and Westchester, a wage of not less than the adjusted minimum wage rate established annually by the commissioner. Such adjusted minimum wage rate shall be determined by increasing the then current year's minimum wage rate by the rate of change in the average of the three most recent consecutive twelve-month periods between the first of August and the thirty-first of July, each over their preceding twelve-month periods published by the United States department of labor non-seasonally adjusted consumer price index for the northeast region urban wage earners and clerical workers (CPI-W) or any successor index as calculated by the United States department of labor, with the result rounded to the nearest five cents. (c) Remainder of state. On and after January first, two thousand twenty-seven, every employer shall pay to each of its employees for each hour worked outside of the city of New York and the counties of Nassau, Suffolk, and Westchester a wage of not less than the adjusted minimum wage rate established annually by the commissioner. Such adjusted minimum wage rate shall be determined by increasing the then current year's minimum wage rate by the rate of change in the average of the three most recent consecutive twelve-month periods between the first of August and the thirty-first of July, each over their preceding twelve- month periods published by the United States department of labor non-seasonally adjusted consumer price index for northeast region urban wage earners and clerical workers (CPI-W) or any successor index as calculated by the United States department of labor, with the result rounded to the nearest five cents. (d) Exceptions. Effective January first, two thousand twenty-seven and thereafter, notwithstanding paragraphs (a), (b) and (c) of this subdivision, there shall be no increase in the minimum wage in the state for the following year if any of the following conditions are met, provided, however, that such exception shall be limited to no more than two consecutive years:

(i) the rate of change in the average of the most recent period of the first of August to the thirty-first of July over the preceding period of the first of August to the thirty-first of July published by the United States department of labor non-seasonally adjusted consumer price index for the northeast region urban wage earners and clerical workers (CPI-W), or any successor index as calculated by the United States department of labor, is negative;

CRS-25

State

State Legislation

or Policy Citation Pertinent Language and Notes

(ii) the three-month moving average of the seasonally adjusted New York state unemployment rate as determined by the U-3 measure of labor underutilization for the most recent period ending the thirty-first of July as calculated by the United States department of labor rises by one-half percentage point or more relative to its low during the previous twelve months; or (iii) seasonally adjusted, total non-farm employment for New York state in July, calculated by the United States department of labor, decreased from the seasonally adjusted, total non-farm employment for New York state in April, and seasonally adjusted, total non-farm employment for New York state in July, calculated by the United States department of labor, decreased from the seasonally adjusted, total non-farm employment for New York state in January.”

North Carolina

North Carolina General Statutes 95-25.3

“Every employer shall pay to each employee who in any workweek performs any work, wages of at least six dollars and fifteen cents ($6.15) per hour or the minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. 206(a)(1), as that wage may change from time to time, whichever is higher, except as otherwise provided in this section.”

North Dakota

North Dakota Code 34- 06-22

“Except as otherwise provided under this chapter and rules adopted by the commissioner, every employer shall pay to each of the employer’s employees: ...

c. Effective July 24, 2009, a wage of at least seven dollars and twenty-five cents per hour."

Ohio Ohio Constitution, Article II, Section 34a

“Except as provided in this section, every employer shall pay their employees a wage rate of not less than six dollars and eighty-five cents per hour beginning January 1, 2007. On the thirtieth day of each September, beginning in 2007, this state minimum wage rate shall be increased effective the first day of the following January by the rate of inflation for the twelve month period prior to that September according to the consumer price index or its successor index for all urban wage earners and clerical workers for all items as calculated by the federal government rounded to the nearest five cents."

Oklahoma Oklahoma Statutes 40- 197.2

“Except as otherwise provided in the Oklahoma Minimum Wage Act, no employer within the State of Oklahoma shall pay any employee a wage of less than the current federal minimum wage for all hours worked.”

Oregon Oregon Revised Statutes 653.025

“(1) Except as provided in subsections (2) and (3) of this section, ORS 652.020 and the rules of the Commissioner of the Bureau of Labor and Industries issued under ORS 653.030 and 653.261, for each hour of work time that the employee is gainfully employed, no employer shall employ or agree to employ any employee at wages computed at a rate lower than: …

(i) From July 1, 2022, to June 30, 2023, $13.50. (j) After June 30, 2023, beginning on July 1 of each year, a rate adjusted annually for inflation as described in subsection (5) of this section.

(2) If the employer is located within the urban growth boundary of a metropolitan service district organized under ORS chapter 268, …

(h) After June 30, 2023, $1.25 per hour more than the minimum wage determined under subsection (1)(j) of this section.

(3) If the employer is located within a nonurban county as described in ORS 653.026…

(h) After June 30, 2023, $1 per hour less than the minimum wage determined under subsection (1)(j) of this section.

(4) The commissioner shall adopt rules for determining an employer’s location under subsection (2) of this section. (5)(a) The Oregon minimum wage shall be adjusted for inflation as provided in paragraph (b) of this subsection.

(b) No later than April 30 of each year, beginning in 2023, the commissioner shall calculate an adjustment of the wage amount specified in subsection (1)(j) of this section based upon the increase, if any, from March of the preceding year to March of the year in which the calculation is made in the U.S. City Average Consumer Price Index for All Urban Consumers for All Items as prepared by the Bureau of Labor Statistics of the United States Department of Labor or its successor. (c) The wage amount as adjusted under this subsection shall be rounded to the nearest five cents. (d) The wage amount as adjusted under this subsection becomes effective as the new Oregon minimum wage amount, replacing the minimum wage amount specified in subsection (1)(j) of this section, on July 1 of the year in which the calculation is made.”

CRS-26

State

State Legislation

or Policy Citation Pertinent Language and Notes

Pennsylvania Pennsylvania Statutes, 43 P.S. §333.104

“Except as may otherwise be provided under this act: (a) Every employer shall pay to each of his or her employees wages for all hours worked at a rate of not less than: ...

(8) Seven dollars fifteen cents ($7.15) an hour beginning July 1, 2007.

(a.1) If the minimum wage set forth in the Fair Labor Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. § 201 et seq.) is increased above the minimum wage required under this section, the minimum wage required under this section shall be increased by the same amounts and effective the same date as the increases under the Fair Labor Standards Act, and the provisions of subsection (a) are suspended to the extent they differ from those set forth under the Fair Labor Standards Act.”

Rhode Island Rhode Island General Laws 28-12-3

“(a) Every employer shall pay to each of his or her employees: commencing July 1, 1999, at least the minimum wage of five dollars and sixty-five cents ($5.65) per hour. Commencing September 1, 2000, the minimum wage is six dollars and fifteen cents ($6.15) per hour.... (n) Commencing January 1, 2024, the minimum wage is fourteen dollars ($14.00) per hour. (o) Commencing January 1, 2025, the minimum wage is fifteen dollars ($15.00) per hour.”

South Carolina

No state minimum wage law n/a

South Dakota South Dakota Code 60- 11-3; 11-3.2

“Every employer shall pay to each employee wages at a rate of not less than eight dollars and fifty cents an hour.”

“Beginning January 1, 2016, and again on January 1 of each year thereafter, the minimum wage provided by § 60-11-3 shall be adjusted by the increase, if any, in the cost of living. The increase in the cost of living shall be measured by the percentage increase as of August of the immediately preceding year over the level as measured as of August of the previous year of the Consumer Price Index (all urban consumers, U.S. city average for all items) or its successor index as published by the U.S. Department of Labor or its successor agency, with the amount of the minimum wage increase, if any, rounded up to the nearest five cents. In no case shall the minimum wage be decreased. The Secretary of the South Dakota Department of Labor and Regulation or its designee shall publish the adjusted minimum wage rate for the forthcoming year on its internet home page by October 15 of each year, and it shall become effective on January 1 of the forthcoming year.”

Tennessee No state minimum wage law

n/a

Texas Texas Labor Code Annotated 62.051

“Except as provided by Section 62.057, an employer shall pay to each employee the federal minimum wage under Section 6, Fair Labor Standards Act of 1938 (29 U.S.C. Section 206).”

Utah Utah Code Annotated 34-40-103

“Minimum wage—Commission to review and modify minimum wage. (1)(a) The minimum wage for all private and public employees within the state shall be $3.35 per hour. (b) Effective April 1, 1990, the minimum wage shall be $3.80 per hour. (2)(a) After July 1, 1990, the commission may by rule establish the minimum wage or wages as provided in this chapter that may be paid to employees in public and private employment within the state. (b) The minimum wage, as established by the commission, may not exceed the federal minimum wage as provided in 29 U.S.C. Sec. 201 et seq., the Fair Labor Standards Act of 1938, as amended, in effect at the time of implementation of this section.”

CRS-27

State

State Legislation

or Policy Citation Pertinent Language and Notes

Vermont Vermont Statutes Annotated, 21 Section 384

“(a)(1) An employer shall not employ any employee at a rate of less than $10.96. Beginning on January 1, 2021, an employer shall not employ any employee at a rate of less than $11.75. Beginning on January 1, 2022, an employer shall not employ any employee at a rate of less than $12.55, and on each subsequent January 1, the minimum wage rate shall be increased by five percent or the percentage increase of the Consumer Price Index, CPI-U, U.S. city average, not seasonally adjusted, or successor index, as calculated by the U.S. Department of Labor or successor agency for the 12 months preceding the previous September 1, whichever is smaller, but in no event shall the minimum wage be decreased. The minimum wage shall be rounded off to the nearest $0.01....

(3) 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 Virginia Code Annotated 40.1-28.10

“D. From January 1, 2023, until January 1, 2025, every employer shall pay to each of its employees wages at a rate not less than the greater of (i) $12.00 per hour or (ii) the federal minimum wage.

E. From and after January 1, 2025, every employer shall pay to each of his employees wages at a rate not less than the greater of (i) the adjusted state hourly minimum wage or (ii) the federal minimum wage.

F. By October 1, 2024, and annually thereafter, the Commissioner shall establish the adjusted state hourly minimum wage that shall be in effect during the 12- month period commencing on the following January 1. The Commissioner shall set the adjusted state hourly minimum wage at the sum of (i) the amount of the state hourly minimum wage rate that is in effect on the date such adjustment is made and (ii) a percentage of the amount described in clause (i) that is equal to the percentage by which the United States Average Consumer Price Index for all items, all urban consumers (CPI-U), as published by the Bureau of Labor Statistics of the U.S. Department of Labor, or a successor index as calculated by the U.S. Department of Labor, has increased during the most recent calendar year for which such information is available. The amount of each annual adjustment shall not be less than zero.”

Washington Revised Code of Washington 49.46.020

“(1)(d) Beginning January 1, 2020, and until January 1, 2021, every employer shall pay to each of his or her employees who has reached the age of eighteen years wages at a rate of not less than thirteen dollars and fifty cents per hour.

(2)(a) Beginning on January 1, 2021, and each following January 1st as set forth under (b) of this subsection, every employer shall pay to each of his or her employees who has reached the age of eighteen years wages at a rate of not less than the amount established under (b) of this subsection.

(b) On September 30, 2020, and on each following September 30^th, the department of labor and industries shall calculate an adjusted minimum wage rate to maintain employee purchasing power by increasing the current year’s minimum wage rate by the rate of inflation. The adjusted minimum wage rate shall be calculated to the nearest cent using the consumer price index for urban wage earners and clerical workers, CPI-W, or a successor index, for the twelve months prior to each September 1st as calculated by the United States department of labor. Each adjusted minimum wage rate calculated under this subsection (2)(b) takes effect on the following January 1st.”

West Virginia West Virginia Code 21- 5C-2

“(a) Minimum wage: (5) After December 31, 2015, 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. §206 (a) (1) is equal to or greater than the wage rate prescribed in the applicable provision of this subsection, every employer shall 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. §206 (a) (1). The minimum wage rates required under this subsection shall be thereafter adjusted in accordance with adjustments made in the federal minimum hourly rate.”

Wisconsin Wisconsin Administrative Code 272.03

“This subsection is effective on July 24, 2009. Except as provided in ss. DWD 272.05 to 272.09, no employer may employ any employee in any occupation, trade, or industry at a lesser hourly rate than as follows: (a) All employees except opportunity and minor employees $7.25 per hour.”

CRS-28

State

State Legislation

or Policy Citation Pertinent Language and Notes

Wyoming Wyoming Statutes Annotated 27-4-202

“(a) Every employer shall pay to each of his or her employees wages at a rate of not less than five dollars and fifteen cents ($5.15) per hour.”

Source: Compiled by CRS from state statutes (links provided in the table above). Notes: The table does not include state law provisions concerning subminimum wage rates (e.g., for youth) or separate wage rates for selected industries.

State Minimum Wages: An Overview

Congressional Research Service R43792 · VERSION 24 · UPDATED 29

Author Information

Sarah A. Donovan Specialist in Labor Policy

^{Ellen M. Lechman}

Research Librarian

Acknowledgments

An earlier version of this report was written by David Bradley, CRS Specialist in Labor Policy, and Abigail Overbay, CRS Research Librarian. CRS Research Assistants Joe Angert and Alice Choi produced the state minimum wage graphic.

Disclaimer

This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you wish to copy or otherwise use copyrighted material.