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Table Of Contents

Here Is the Minimum Wage For All 50 States As of 2025

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Introduction


Minimum wage laws can feel like a maze, can’t they? You’ve got federal rules on one hand and state-specific guidelines on the other. Understanding who pays what—and why—can get confusing fast. But fear not. We’re about to explore the ins and outs of the 2025 minimum wage landscape across all 50 states (plus a few special jurisdictions) in a simple, straightforward way. Whether you’re a business owner who wants to stay on the right side of labor laws or a worker curious about how your paycheck stacks up, this guide has you covered.

Why Does Minimum Wage Matter?


There’s much more behind minimum wage rates than just numbers on a paycheck. They act like the foundation of a building: set them too low, and workers may struggle to support themselves; set them too high, and small businesses might feel squeezed. Ideally, a balanced minimum wage elevates living standards, reduces turnover, and ensures that employees feel valued without crippling an organization’s bottom line. It’s a tricky tightrope to walk, but an important one to understand if you’re part of the workforce—or if you employ it.

Historical Perspective


America’s first federal minimum wage stood at 25 cents an hour back in 1938. Over the decades, lawmakers raised it to match inflation, address changing living costs, and keep up with economic growth. For instance, national wage floors increased steadily until the 1970s after World War II. By 2009, the federal minimum wage reached $7.25, where it remains today. However, many states didn’t want to wait on Washington to adjust that figure any further, so they implemented their own laws, some indexing wages to inflation or cost-of-living formulas.

Understanding Federal vs. State Wages


The federal government sets a minimum wage. But states—if they choose—can implement higher rates. If a state sets a rate below $7.25, then the federal rate prevails for workers covered by the Fair Labor Standards Act. Often, workers are confused about which number applies to them. Essentially, the higher of the two minimum wages (federal or state) is the one that typically must be paid to employees who fall under federal coverage. Most do, but not all. That’s why states with lower wage levels or no state wage at all still follow $7.25 for most employers. Meanwhile, some major urban centers, such as certain cities in California, go above the state’s threshold with local “living wage” ordinances.

States With No Separate Minimum Wage


Surprising as it is, several states don’t have their own laws setting a wage floor. These include Alabama, Louisiana, Mississippi, South Carolina, and Tennessee. In these places, businesses pay the federal wage of $7.25 an hour for eligible workers. If you’re employed in one of these states and hear people chatting about “state minimum wage,” they’re likely referring to $7.25.

States With Minimum Wage Equal to Federal Rate

Not every state invests in a unique wage law. Some states mirror the federal level of $7.25. While a few do have legislation on the books, their state wage remains the same as the national mandate. Examples include Georgia and Wyoming, which technically have rates below $7.25, but because of federal coverage, $7.25 still ends up applying in most cases.

States Surpassing the Federal Minimum


On the other end of the spectrum, many states have chosen to set a more generous rate. For instance, California, Washington, and Massachusetts all exceed $15 as of 2025 (with Washington checking in at a hefty $16.66). These states argue that a higher wage fosters a healthier standard of living and fewer workers relying on social services. Of course, whether that’s good or bad for business depends on who you ask. But there’s no denying that certain pockets of the country have embraced big numbers to keep up with cost-of-living realities.

Annual Adjustments and Formulas


Some states, like Alaska, adjust their minimum wage yearly, typically in line with inflation. If inflation jumps 3%, wages go up 3%. It’s a way to ensure your buying power isn’t eroded by rising prices. Colorado, Florida, Missouri, and others have adopted similar approaches, meaning the wage floor you see today could be different next year. This approach is like tying your boat to the tide: as the cost of living rises, so does the wage.

Regional Trends and Observations

  • West Coast: Washington, Oregon, and California lead the pack with rates well above $14 an hour. California is up to $16.50, and Washington checks in at $16.66.
  • East Coast: The District of Columbia outshines them all at $17.50, while states like Connecticut ($16.35), New Jersey ($15.49), and New York (up to $16.50 in certain counties) aren’t too far behind.
  • Midwest: Rates can vary wildly. Illinois hits $15, while Iowa remains at $7.25. Michigan stands at $10.56, which jumps to $12.48 in 2025.
  • Southern States: Many remain locked at $7.25 or close to it. Florida is an outlier at $13, with a plan to reach $15 by 2026.
  • Rocky Mountains and Beyond: Colorado sets $14.81, while states like Idaho remain at $7.25.

Key Changes Projected by 2025


A handful of states have declared an official path to a new wage floor. Florida, as noted, is stepping up by $1.00 each year until it hits $15 in 2026. California generally adjusts its wage annually based on cost-of-living changes. In Michigan, a scheduled jump to $12.48 takes effect in February 2025. These incremental changes can help businesses plan their budgets better and give employees a sense of how their paycheck might grow.

Breakdown Of Minimum Wage By State

State / Jurisdiction 2025 Minimum Wage Overtime Threshold Additional Notes
Alabama No State Law (Federal $7.25) 40 hours/week Follows federal rate
Alaska $11.91 8 hours/day, 40/week Adjusted annually for inflation
Arizona $14.70 40 hours/week Annual cost-of-living adjustment
Arkansas $11.00 40 hours/week Employers with 4+ employees
California $16.50 8 hours/day, 40/week Twice the rate after 12 hrs/day
Colorado $14.81 12 hours/day, 40/week Annual cost-of-living formula
Connecticut $16.35 40 hours/week Overtime for 7th consecutive day
Delaware $15.00 40 hours/week Adopts higher of state/fed rate
District of Columbia $17.50 40 hours/week Adjusts annually on July 1
Florida $13.00 40 hours/week Increases by $1 annually until $15
Georgia $5.15 (Fed $7.25 applies) 40 hours/week Most workers covered by federal rate
Hawaii $14.00 40 hours/week $4,000/month earners exempt
Idaho $7.25 40 hours/week Matches federal rate
Illinois $15.00 40 hours/week For 4+ employees (excl. family)
Indiana $7.25 40 hours/week Applies if 2+ employees
Iowa $7.25 40 hours/week Follows federal rate
Kansas $7.25 40 hours/week Most follow federal law
Kentucky $7.25 40 hours/week 7th day overtime law
Louisiana No State Law (Federal $7.25) 40 hours/week Follows federal rate
Maine $14.65 40 hours/week Annual inflation adjustment
Maryland $15.00 40 hours/week Regularly updated by law
Massachusetts $15.00 40 hours/week Always at least $0.50 above federal
Michigan $10.56 (Set to $12.48 by Feb 2025) 40 hours/week FLSA coverage unless state is higher
Minnesota $11.13 48 hours/week Annual inflation adjustment
Mississippi No State Law (Federal $7.25) 40 hours/week Follows federal rate
Missouri $13.75 40 hours/week Annual cost-of-living formula
Montana $10.55 (or $4.00 for small businesses) 40 hours/week Annual formula adjustments
Nebraska $13.50 40 hours/week Covers employers with 4+ employees
Nevada $12.00 40 hours/week; or 8 hours/day if <1.5 times wage Two-tier wage system
New Hampshire $7.25 40 hours/week Follows federal if below $7.25
New Jersey $15.49 40 hours/week Adjusted annually, smaller biz $14.53
New Mexico $12.00 40 hours/week No tip credit for some employees
New York $16.50 (NYC & Surrounding), $15.50 (Upstate) 40 hours/week (44 for live-in workers) Spread-of-hours rule adds extra pay
North Carolina $7.25 40 hours/week Seasonal amusements @ 45 hours
North Dakota $7.25 40 hours/week Follows federal guidelines
Ohio $10.70 (Large Employers), $7.25 (Small Employers) 40 hours/week Adjusts annually for inflation
Oklahoma $7.25 (or $2.00 if <10 employees & <$100k revenue) 40 hours/week Generally defaults to federal rate
Oregon $14.70 (Standard), $15.95 (Portland), $13.70 (Rural) 40 hours/week Higher wages in metro areas
Pennsylvania $7.25 40 hours/week No state-level changes in place
Puerto Rico $10.50 (Some exceptions apply) 8 hours/day, 40/week Additional pay on statutory rest day
Rhode Island $15.00 40 hours/week Sunday/holiday pay in some industries
South Carolina No State Law (Federal $7.25) 40 hours/week Follows federal guidelines
South Dakota $11.50 40 hours/week Adjusts annually for inflation
Tennessee No State Law (Federal $7.25) 40 hours/week Follows federal rate
Texas $7.25 40 hours/week Adopts federal rate by reference
Utah $7.25 40 hours/week FLSA coverage applies
Vermont $14.01 40 hours/week Annual inflation-based raise
Virgin Islands $10.50 8 hours/day, 40/week Extra pay on 6th or 7th consecutive day
Virginia $12.41 40 hours/week Adjusted annually based on formula
Washington $16.66 40 hours/week State leads high minimum wage trend
West Virginia $8.75 40 hours/week For employers of 6+ workers
Wisconsin $7.25 40 hours/week No state-level increases planned
Wyoming $5.15 (Fed $7.25 applies) 40 hours/week Most employees under federal coverage

Impact on Employers and Employees


Minimum wage shifts can feel like riding a roller coaster. When rates go up, employees may rejoice while some business owners scramble to rework their budgets. Employers in states with annual adjustments often build wage increases into their financial forecasts. Employees tend to see a bump in purchasing power, which can trickle back into local economies. However, concerns about price hikes, automation, or reduced hours always arise. Like any policy, it’s a balancing act—ask a small café owner trying to keep the lights on while paying staff a fair wage.

Tips for Staying Compliant

  1. Track Legislative Updates: Laws evolve. Keep an eye on your state legislature’s website or consult official labor department announcements.
  2. Use Payroll Software: Automatic updates can help you avoid wage-hour violations.
  3. Document Everything: Accurate timesheets, employee classifications, and pay records are crucial if you ever face an audit.
  4. Communicate Changes: Let employees know well in advance if the state or federal wage is set to jump.
  5. Stay Local: Some cities (like Seattle, Denver, or certain California municipalities) pass their own laws above the state threshold.

Looking Ahead: Possible Future Changes


There’s an ongoing debate about raising the federal rate beyond $7.25. Some politicians push for $15 nationwide. Others argue for letting each state decide. Meanwhile, cost-of-living spikes fuel the case for more local wage adjustments. Could we see a $20 or higher minimum wage in some areas within the next decade? Possibly. The conversation is far from over. As the economy evolves, public opinion and political will might shift, leading to new policies that aim to keep wages in line with modern costs.

Conclusion


The minimum wage picture in 2025 is all about adaptation. States with high living costs continue to climb above $15, sometimes much higher, while others remain tied to $7.25. For employees, it’s a lifeline that can improve finances or even determine career choices. For businesses, it’s necessary to involve tight budgeting, potential price adjustments, and a decent chunk of number-crunching. Whether you see it as a blessing or a burden, staying informed and flexible as wage laws change is wise.

FAQs

  1. Do local ordinances override state and federal minimum wage laws?
    Yes, in many cases. Businesses in that area must comply with the local standard if a city or county adopts a higher minimum wage
    .
  2. Why don’t some states have their own minimum wage laws?
    Some states prefer to defer entirely to the federal government or haven’t passed legislation establishing a state rate. In these cases, the federal rate of $7.25 generally applies.
  3. What if a worker is covered by state and federal law, but they differ?
    The employee should receive whichever wage is higher. Most businesses fall under federal coverage, so in practice, states with a lower or no wage law default to $7.25.
  4. How do I know if I’m subject to federal coverage under the Fair Labor Standards Act (FLSA)?
    Generally, you’re covered if your business engages in interstate commerce or meets a certain revenue threshold. It’s best to consult the Department of Labor’s guidelines or an employment attorney for specifics.
  5. Does paying a higher minimum wage really help the local economy?
    That depends on who you ask and how you measure it. Supporters say it boosts consumer spending power, while skeptics worry about increased prices or small business layoffs. Research findings vary, but many economists agree that moderate increases can have a positive net effect on workers and communities.
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Brett Patrontasch CEO
Brett Patrontasch is the Co-founder and CEO of Shyft, an app that helps retail and service workers swap shifts and message each other.

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