minimum wage – Workforce

December 20, 2024June 3, 2025

Minimum Wage by State (2025)

Summary

More than 20 states are raising their minimum wages in 2025.
Michigan’s minimum wage will increase in two steps in 2025: $10.56 per hour starting January 1 and rising to $12.05–$12.48 per hour on February 21, pending inflation adjustments.
Since 2009, the federal minimum wage rate has remained at $7.25, but the rate is higher in 30 states, along with Washington, D.C., Guam, and the Virgin Islands.

Employers in the United States are bound by different laws when it comes to minimum wage rates, depending on the state or even the city they’re in. The federal minimum wage rate is a fixed national rate set by the Fair Labor Standards Act (FLSA) and enforced by the U.S. Department of Labor (DOL).

The federal minimum wage was last revised in 2009 and is currently set at $7.25 per hour. Former President Biden pushed for this to increase to $15 and bumped the minimum wage for federal contractors to $15 in 2022 — possibly as a precursor to a nationwide increase.

In response to the inertia at the federal level, over half of the US states and cities have taken the initiative to institute higher minimum wage rates in their jurisdictions in 2023. In cases like these, the law favors the rate most beneficial to the employee — in other words, the highest minimum wage.

States with higher minimum wage rates include Washington at $16.66 and the District of Columbia at $17.50. Cities with minimum wage rates higher than those of their states include New York City ($16.50 — $1 more than in New York State) and Portland, Maine ($15.50, $0.85 higher than the state).

As an employer, it’s important to understand and stay current on all the laws and regulations regarding minimum wage increases or decreases. Using the right time tracking and payroll software ensures that you remain compliant with little effort.

Whitepaper: Complete Guide to Wage & Hour Compliance

State Minimum Wage Rates in 2025

Effective January 1, more than 20 states raised their minimum wage rates in response to inflation or according to previously enacted legislation. Florida is set to increase its minimum wage rate in September.

Overall, 30 states, as well as DC, Puerto Rico, Guam, and the Virgin Islands, have a minimum wage higher than the federal rate. Fifteen states, as well as the Northern Mariana Islands, use the federal minimum wage rate of $7.25 per hour. Five states have not adopted their own minimum wage rate law and, therefore, default to the federal rate of $7.25.

View all state minimum wages in the table below.

Note: states that raised their minimum wage in 2025 are denoted by an asterisk (*)

States with MW greater than federal	States with MW equal to federal ($7.25)	States that have not adopted a state MW law
*Alaska $11.91 (from $11.73)	Northern Mariana Islands	Alabama
Arkansas $11.00	Georgia	Louisiana
*Arizona $14.70 (from $14.35)	Iowa	Mississippi
*California $16.50 (From $16)	Idaho	South Carolina
*Colorado $14.81 (from $14.42)	Indiana	Tennessee
*Connecticut $16.35 (from $15.69)	Kansas
District of Columbia $17.50 (may increase based on calculations on July 1, 2025)	Kentucky
*Delaware $15 (from $13.25)	North Carolina
Florida $13 (will increase to $14 on September 30, 2025)	North Dakota
Hawaii $14	New Hampshire
*Illinois $15.00 (from $14.00)	Oklahoma
*Maine $14.65 (from $14.15)	Pennsylvania
Maryland $15	Texas
Massachusetts $15.00	Utah
*Michigan $12.48	Wisconsin
*Minnesota $11.13 (from $10.85)	Wyoming
*Missouri $13.75 (from $12.30)
*Montana $10.55 (from $10.30)
*Nebraska $13.50 (from $12)
Nevada $12
*New Jersey $15.49 (from $15.13)
New Mexico $12.00
*New York $16.50 for New York City, Long Island and Westchester and $15.50 for the remainder of New York State
Ohio $10.70
*Oregon $14.70
*Rhode Island $15 (from $14)
*South Dakota $11.50 (from $11.20)
*Vermont $14.01 (from $13.67)
*Virginia $12.41 (from $12)
*Washington $16.66 (from $16.28)
West Virginia $11
Virgin Islands $10.50
Guam $9.25
*Puerto Rico $10.50 (from $.9.50)

Currently, the District of Columbia is the entity that has the highest minimum wage at $17.50 per hour (and may increase by July 2025).

State laws exempt some jobs or sectors from the minimum wage labor law. For example, in New Jersey, such exemptions include salespersons of motor vehicles and employees caring for children in the homes of their employers.

In some cases, states set subminimum rates for groups such as minors and students or training wages for new hires. In Rhode Island, full-time students under the age of 19 who work for nonprofit religious, education, library, or community service organizations are entitled to a minimum wage rate of $11.70. The state’s standard minimum wage rate is $14.00.

Minimum Wage in New York

At the start of 2024, New York increased its minimum wage from $14.20 to $16. This is the first increase following the final part of a series of increases in the state’s minimum wages that began on December 31, 2016.

According to the New York state website:

“The state minimum wage is scheduled to increase by $0.50 per year on January 1, 2025 and January 1, 2026. Beginning in 2027, the minimum wage will annually increase by the three-year moving average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region.”

These increased gradually and will differ for employees working in different industries. Large employers had to increase their minimum wages faster than small employers with fewer employees.

At a local level, New York City, Long Island, and Westchester Country enjoy a minimum wage of $16.50 per hour across the board. This includes tipped workers, although employers can take up to $5 an hour off the wage as tip compensation.

Minimum Wage in California

The minimum wage in the state of California is currently $16.50, $9.25 higher than the federal minimum.

According to the California Labor Code section 1182.12, California’s Director of Finance has the authority to determine annually if an increase to the minimum wage is needed. The $0.50 increase in 2025 was deemed necessary because the CPI grew by 3% over the past year.

Due to some groundbreaking state legislation for the fast food industry, quick-service restaurants with at least 60 locations nationwide must abide by a new minimum wage of $20 per hour. This bill also establishes a Fast Food Council in the state, which has the power to raise the minimum wage going forward.

In some cases, meals or lodging can be used to meet part of the minimum wage obligation. This can only be done if agreed upon by the employer and employee and supplemented with a voluntary written agreement. The amounts credited to the employee’s minimum wage are also limited based on the information found via this official notice.

Minimum Wage in Illinois

The minimum wage for the state of Illinois increased by $1 from $14 to $15 on January 1, 2025, which means it finally reached the threshold following a series of increases that began in 2019.

Illinois workers who regularly earn tips saw an increase in minimum wage to $8.40 per hour and must still earn minimum wage after receiving tips. If they don’t, the employer must pay the difference.

Rates are higher in Chicago, where the minimum wage is currently $16.20 per hour for employers with four or more employees.

Chicago tipped workers have a minimum wage of $11.02. Similar to the state minimum wage conditions, employers must cover the difference for tipped workers if their wages plus tips do not equal at least the full minimum wage.

Minimum Wage in Florida

Effective September 2025, Florida’s minimum wage is $14 per hour. This is also part of a gradual increase of $1 per year that will lead to a $15 minimum wage rate in September 2026.

Minimum Wage in Texas

The state minimum wage in Texas is $7.25, equal to the federal rate. This has been in effect since January 24, 2009.

Employers can count tips, meals, and lodging toward the minimum wage with specified restrictions on how much can be allocated to them. There are conditions where an employer can pay a rate lower than minimum wage to an employee who is a patient of the Texas Department of Mental Health and Mental Retardation. This can also include individuals of a certain age or with “productivity impairments.”

Other exemptions covered by Texas Minimum Wage Act include:

Employment in, of, or by religious, educational, charitable, or nonprofit organizations
Certain professionals, salespersons, or public officials
Domestic workers
Certain youths and students
Inmates
Family members
Certain amusement and recreational establishments
Non-agricultural employers that are not liable for contributing to the state unemployment compensation fund
Dairying and production of livestock
Sheltered workshops

Minimum Wage in Nevada

Previously, Nevada had two minimum wage rates. In this two-tier system, employees who receive qualifying health insurance have a minimum wage rate of $10.25. However, if they do not receive qualifying health insurance, the minimum wage rate is $1 higher, at $11.25 per hour.

This long-standing two-tier system was eliminated in July 2024, where Nevada increased its minimum wage rate to $12.00 across the board for all employers, regardless of whether or not they offer health insurance. In 2025, the state minimum wage rate will remain at the same rate.

Staying on top of minimum wage laws as an employer

With so many differences and exemptions that affect different states and even different cities within those states, it can be tricky for an employer to remain compliant with the law.

Industries where workers earn tips can be particularly tricky, according to Workforce.com’s chief strategy officer Josh Cameron, “In hospitality or anything where you earn tips, you can pay the staff a minimum wage much lower than the normal one. So it would be $7.50 an hour if they’re not tipped, but it’s $2.50 if it’s tipped. As long as they get enough tips to get them over that—it’s called the tip credit—then they can receive the lower $2.50 per hour from their employer.”

Apart from the legal implications and the hefty fines, underpaying employees can be a PR nightmare for your business. Andrew Stirling, Workforce.com’s head of product compliance, argues, “An underpayment scandal can bring companies to their knees. Customers can decide to take their business elsewhere. People are less likely to visit a restaurant or shop that has been reported for underpaying their people.”

Workforce management software like Workforce.com takes state and local laws into account. Workforce’s labor compliance software allows you to pay your staff in accordance with federal, state, and regional wage laws. This includes exemptions and special situations, including tipped employees.

The system remains up to date as laws change, and it also undergoes regular audits, ensuring you remain compliant and avoid unnecessary penalties.

Simplify compliance with Workforce.com

Workforce.com offers HR and payroll software that give you the resources you need to calculate pay and remain up to date in the ever-changing minimum wage landscape. You can apply new compliance rules to the system as new minimum wage rates are put in place and new legislation is passed.

The system calculates correct pay for all your employees based on minimum wage, hours worked, and overtime, automatically creating highly accurate electronic timesheets. These timesheets can then be exported directly into your payroll system for processing.

To learn more about how Workforce.com stays on top of minimum wages and pays staff accurately, book a call or start a free trial today.

November 2, 2022

New Labor Laws Taking Effect in 2023

The new year is fast approaching, and with its arrival comes a host of new labor laws that will impact millions of workers and their employers across the nation. Being aware of these changes prior to their implementation will allow for all parties affected to make a smoother transition heading into 2023.

New Year, New Minimum Wage

One such change to be on the lookout for this January is an increase to the minimum wage across various states. While the federal rate will continue to hold steady at $7.25 per hour, numerous states have established their own rates, which in some cases far exceed the federal amount that has gone unchanged for the past 13 years.

Whether due to inflationary pressures or phasing in statutory increases, minimum wages will be going up across the nation. From Maine’s bump to $13.80/hour to Washington’s boost to a nationwide high of $15.74/hour, these increases will all go into effect in 2023.

In some states, however, it’s not so cut and dry. New York, for instance, incorporates different minimum wages for different parts of the state and different industries. So, while a New York City construction worker earning minimum wage can expect to make $15 per hour at the start of the new year, a construction worker doing similar work in upstate New York will command just $14.20 per hour.

Another important consideration for employers to keep in mind for minimum wage changes next year is that they won’t all necessarily kick in on January 1. Several states will be enacting their wage changes at some point later in the year, including Connecticut (June 1), Oregon (July 1), Florida (Sept. 30), and Hawaii (Oct. 1).

Finally, when it comes to the federal minimum wage, some exceptions apply under specific circumstances to workers with disabilities, tipped employees, full-time students, and workers under 20 years of age in their first 90 consecutive calendar days of employment.

Whatever rates are finalized in each state for 2023, employers must be ready before the end of the year to meet the new minimum wage requirements and understand the rules and regulations unique to their state. Failure to observe newly implemented wage laws can result in a multitude of fines and penalties.

New Labor Laws Across the Nation

It’s not just minimum wage laws that will see changes in the year ahead. A host of new labor laws and amendments will also be initiated throughout the United States in 2023, and depending on what state you’re in, the changes can be substantial. Below are just a select few that can have a significant impact on those involved.

California

California has some of the strictest labor laws in the country, and that continues to be the case heading into 2023. An amendment to the Pay Transparency Law will now require employers to provide the pay scale for any job applicant or current employee upon request. And, employers with more than 14 employees must include the pay scale for a position in any job posting, including those positions listed on third-party sites. Employers will also need to maintain records identifying the job title and wage rate history for each employee throughout their time at the company.

Lastly, fast-food chains in the Golden State will need to read up on how to comply with the upcoming establishment of a fast-food council, depending on whether or not the referendum seeking to delay the bill is successful come December 4th.

Colorado

Doing business in Colorado? Get ready for the Paid Medical and Family Leave (PFML) to begin next year. Employees who meet the eligibility requirements will now be able to receive 12 weeks of paid family and medical leave funded through a payroll tax paid by both employers and employees in a 50/50 split. The paid leave needs to be funded before any employee is able to take the leave. Employers and employees will start paying into PFML in 2023, and the earliest workers will be able to take this paid leave is January 1, 2024.

New York

While New York already has an established Paid Family Leave, a noteworthy change has been made to it beginning in 2023. As of the new year, the list of family members for whom eligible workers can take Paid Family Leave to care for will include siblings with serious health conditions. This includes biological siblings, adopted siblings, step-siblings, and half-siblings. The family members requiring care won’t even have to live in the state of New York.

Final Thoughts

There are myriad new and amended labor laws that will be going into effect throughout the U.S. in the coming year. Being aware of the ones your business may be subject to can help minimize the likelihood of costly fines and potential labor lawsuits down the road. Every effort should be made to stay on top of labor legislation that must be followed.

No doubt, workers across the country will be rejoicing in the new labor laws set for 2023 that benefit them in a variety of ways. Employers may not be quite as jubilant with these changes, but must nevertheless find ways to accommodate these newly imposed laws while continuing to grow their business.

April 28, 2021August 31, 2022

Biden administration announces $15 minimum wage for all federal contractors

On April 27, the White House announced that effective Jan. 30, 2022, all federal contractors will be required to incorporate a $15 minimum wage in new contract solicitations, and by March 30, 2022, all federal agencies will need to implement the minimum wage into new contracts and into existing contracts with annual options to renew.

The Executive Order that implements these changes will also tie this new minimum wage to inflation and adjust accordingly annually, eliminate the tipped minimum wage for federal contractors by 2024, and extends the required $15 minimum wage to federal contract workers with disabilities.

“But Jon,” you ask, “I’m not a federal contractor; why should I care?”

You should care because this Executive Order will move the minimum wage needle. Other companies will have to begin voluntarily offering a $15 minimum wage to compete in the job market for new hires. As a result, eventually and over time a $15 minimum wage will spread to all employers nationwide. If Congress won’t act on this issue, President Biden will force employers to act on their own.

February 22, 2021August 25, 2023

Top 5 workforce management tech trends in 2021

Organizations were forced to rethink operations in 2020 and shift their strategies overnight, prompting new investments in workforce management technology. So, what’s to come in 2021?

We’ve compiled a list of the top 5 and specific workforce.com technology features we predict will be key trends this year. These include COVID recovery, labor compliance, automated scheduling, advanced workforce analytics and increased cloud and mobility functionality.

Labor compliance and minimum wage changes

The Biden administration is pushing to raise the federal hourly minimum wage to $15 by 2025. While legislation has yet to be passed, organizations will be preparing for minimum wage changes and complying correctly. Companies that fail to comply are at risk of facing stiff financial penalties and negative public attention.

Webinar: What the Biden administration means for the minimum wage laws

Staying abreast of these changes will be crucial, and organizations will be looking to have an automated system in place that will make the transition easier. Organizations will require solutions that can simplify and automate labor law compliance. They will need a proactive platform that accounts for all applicable federal, state and local labor regulations from employee scheduling to payroll processing.

Workforce.com continues to invest in our fully automated and user customizable compliance engine, pioneered in Australia to manage the world’s most complicated and expensive wage laws and costs. Instead of manually updating or having to calculate different wages for schedules, overtime and payroll, organizations will be able to have changes automatically forecasted and updated. We predict labor compliance to continue to become increasingly complicated due to political, regional and union influence.

Higher wages will also mean increased labor cost and a need for companies to be smarter around how they schedule, track and spend on wages. Workforce management features that can boost employee productivity while providing wage oversight for owners and front-line teams to proactively manage will be key.

A way to address this will be the Workforce.com Live Wage Tracker, which provides a real-time view of staff count, exact costs and where there may be overspending per shift factored for compliance. It equips frontline managers to make decisions quickly and adjust staffing levels accordingly throughout the day. With this, businesses can be more efficient in controlling their labor costs and optimizing real-time operations.

Also read: The rundown on wage law compliance: What organizations should know

COVID-19 recovery and employee well-being

As the world recovers from COVID-19 and shift work industries return to normal, it will remain paramount for organizations to have a workforce management platform in place for ensuring employee health, safety and feedback.

As workers return to their shifts in numbers, clear communication will be vital to responding to queries and staying agile as a team. Workforce.com innovations this year include the live 360-degree shift feedback and ratings feature so comments can be gathered from employees after each shift and proactively managed. Their responses enable managers to quickly address issues and apply necessary changes to future shifts. This tool promotes transparency and will provide an avenue for employees to speak up and be heard.

Watch: Introducing shift feedback and ratings

Tracking accurate time and attendance but minimizing contact with communal punch clocks will also continue to remain a priority for organizations. Instead of these older physical devices we predict an accelerated rise of next-gen mobile, app, GPS and tablet clocking in solutions that addresses these concerns.

For instance, with workforce.com GPS Clock ins instead of just one device for clocking in, staff will be able to use this feature to clock in on their own mobile device. Employees who are on the go can also use it to accurately log their start and end times, as well as their break and location while on shift. This results in a lower hardware and maintenance cost of ensuring accurate timesheets while reducing multiple touches to a communal device.

Workforce.com has also developed a completely free tool called Reopen to help businesses manage their capacity and social distancing requirements as they open. By allowing customers to make an appointment online, this will assist businesses in managing the number of people within their premises at a particular time. Organizations will be able to set opening hours, and customers can book in a time slot using their phone.

Auto employee scheduling

We predict further advancements in automated employee scheduling in 2021 with an introduction of advanced algorithms and automatic demand prediction, shift building and shift filling. The future of auto-scheduling looks to be creating ‘win-win’ shifts for employees and employers that drive maximum efficiency whilst optimizing for employee choice and flexibility

Demand prediction is considered the first key step in auto-scheduling. The more applicable information that can be collected about how busy it’s forecasted to be, the more accurate and confident the staff coverage. Workforce.com can currently integrate with any existing business system (I.e POS, MES, HMS, ERP’s etc) to capture this demand data and predict staffing requirements. This can then be adjusted for location unique factors such as events, weather, seasonal changes, trends and manager discretion.

I.e., This Super Bowl will be 20 percent busier than last year. Next Tuesday will be as busy as the average of the last three Tuesdays. Next Friday will be 40 percent less busy because it will be raining.

Once managers have confidence in their demand prediction, shift building is the next step. Software like Workforce.com can help managers create shift patterns for the amount of work that needs to be done, while keeping in mind regulations that set limits on how few or many people can be working at a given time. Still, managers need to ascertain certain information from employees to help make this possible, such as by approaching employees and getting hard numbers on how long it takes to complete basic tasks within their shifts.

Shift filling is where the most innovation comes in where managers will be able to effortlessly fill shifts factoring multiple constraints, such as labor costs, qualifications, roles and labor laws. If an employee is unavailable, managers can offer that shift to other available staff. Workforce.com can then show managers how much a potential shift swap costs, enabling them to stay on budget.

Being smart at shift building and shift filling against projected business demand will ultimately both make employees more satisfied and help control budget efficiency. Managers will be able to accomplish this with the right tools that give them the best potential technology and algorithms while also giving them the opportunity to put the employee in the process. Technology built on this win-win philosophy will be the future of automated employee scheduling with both employee and employer achieving desired outcomes.

These advancements in “one-click scheduling” are predicted to drastically save on manager administrative time, optimize labor cost and reduce over/under staffing.

Advanced workforce analytics and open APIs

Increased adoption of the workforce.com open API is expected to bring huge advancements in workforce analytics and promote internal innovation, integration and personalization. By leveraging the power of connectivity, enterprises can quickly eliminate the chaos of using multiple applications leading to rapid innovation and deeper insights into their workforces.

Companies that can efficiently discover patterns, spot potential problems and optimize their workforce quickly will stay ahead in 2021. This is only possible when organizations have access to their data and have the mechanisms to generate reports that are clear, easy to understand and make the most sense for stakeholders such as HR, payroll, managers and employees.

With Workforce.com’s advanced reporting suite and API, organizations will be able create custom reports and workflows for efficient analysis. Companies can choose to use customizable built-in reports or create their own by pulling information from any data point.

Also read: Labor analytics and reporting starts with access to the right data

Cloud, mobility and ease of use

2021 will continue the rise of native SaaS cloud applications over clunky enterprise workforce management software with organizations preferring improved frontline manager/employee mobility options and ease of use. Employees should love to use the tools provided or they generally won’t use them at all.

Simple and modern UI has long been missing from workforce management solutions with organizations needing to solve their problems and complete tasks in the easiest and quickest way possible. Workforce.com remains the leader in workforce management design as we continue to invest in simplicity and ease of use to increase employee engagement, usability and lower support and implementation issues.

It’s also becoming paramount for organizations to lead with a mobile first strategy for their workforce management. Workforce.com will continue to expand our employee mobile app that staff and managers can use to clock in, see timesheets, create schedules and communicate with the rest of the team.

Implementation expectations adhere to these ease of use and quick-to-learn principles with organizations expecting higher standards and tighter deadlines when rolling out or switching from a legacy solution. Workforce.com implementation is now easier and faster ensuring that users can start using the platform in no time reaping benefits of upgrading faster.

In 2021 we predict an increased migration to cloud computing services like workforce.com due to increased functionality, reliability, scalability, security, continual R&D and decrease in cost.

There are currently 300,000 users on the Workforce.com platform, with a 4.75 app star-rating average and 99 percent client retention. Find out why and try Workforce.com today.

November 10, 2020October 1, 2021

Florida minimum wage hike highlights need to get smarter on payroll compliance

Florida Amendment 2, which was approved Nov. 3 by 60.8 percent of voters in the Sunshine State, will raise the minimum wage to $15 an hour by 2026. The Florida Policy Institute estimates that up to 2.5 million workers are now in line for higher wages. Per Florida Amendment 2, minimum wage will climb from $8.56 an hour to $10 an hour in September 2021 and then rise a dollar per year until 2026.

The 2020 election season also saw Joe Biden pledge to raise the minimum wage to $15 nationwide. Currently, the federal minimum wage is $7.25 an hour. As MarketWatch notes, Biden will likely face many hurdles to get this measure passed, especially if control of the Senate remains with the Republicans.

Still, while no action has been taken yet on a national level, it’s something for organizations to keep in mind as more states — including California, Connecticut, Illinois, Maryland, Massachusetts, New Jersey and New York — pledge to increase minimum wage in coming years.

Florida’s passage of a statewide minimum wage increase to $15 may pose some challenges to business owners complying with the new law. One thing they don’t have to stress about is how well their workforce management system can handle the new requirement.

Technology can help Florida employers as they maneuver the new minimum wage landscape. Smart workforce management software will take state and local laws into account so that compliance is as simple as possible.

Workforce.com ensures that managers have simplified and automated compliance to federal, state and local labor regulations, allowing them to avoid costly penalties. Workforce.com software also undergoes an audit regularly to make sure laws and regulations are up to date, meaning that managers can worry less about financials and compliance and more about creating a good schedule.

Don’t fall behind on compliance. Invest in employee scheduling software that simplifies compliance and payroll so that no matter what new regulations pass, your organization is prepared and confident.