It may come as no surprise that many small business owners are unaware of their employees’ rights. From the Fair Labor Standards Act which dealt with minimum wage in US states to the Occupational Safety and Health Act, small businesses can have a difficult time understanding how federal regulations may affect their employees.
One such regulation that is often misunderstood is the federal minimum wage in various US states, which applies to those who are at least sixteen years old, do not have close relatives who are employed by the organization, and have just started working.
Thankfully, the Federal Minimum Wage Guide is available to help clarify any confusion with your pay stubs. This is an online tool that will help these organizations comply with federal wage regulations. The tool provides guidance as to what laws apply, what the law provides, and what is required by the legal bodies in and around the U.S.
The US Department of Labor created this guide so that small employers could catch up on what they need to do to comply with federal law, and the team at PayStubsNow has summarized it for your ease-of-reading and simplicity. The guide covers everything from how to comply with the Fair Labor Standards Act, which establishes and regulates the minimum wage as well as overtime pay, including salary level exemptions; what an employer must do if it hires minors; how to deal with discrimination and sexual harassment; and much more. In this article, we’ll summarize the minimum wage guide and provide simple, easy-to-digest information on the federal minimum wage in all US states.
Minimum Wage in All US States
The minimum wage in US states varies, but there are federal standards as well. The Fair Labor Standards Act (FLSA) establishes basic minimum hourly wages and is what governs in federal industries, such as hospitals and nursing homes, public agencies, laundries and dry cleaners, restaurants and cafeterias, transportation by air or rail, trucking companies, etc. The federal minimum wage is a regulation that sets the lowest rate a worker can be paid per hour
It was first introduced by the Fair Labor Standards Act in 1938. The Act set the national minimum wage at 25 cents per hour. Over time, this has been increased multiple times to its current rate of $7.25 per hour, but the FLSA also allows individual states to set higher rates within their borders for employers who don’t make at least $7.25 an hour on their own because they have a “fringe benefit” package that includes health insurance or tips or commissions or other forms of compensation in addition to hourly pay rate
In general, if an employer pays more than the federally required $7.25 per hour to a worker who receives it on a salary basis (that is, not hour-by-hour), then they may be exempt from complying with this section of FLSA regulations relating to hours worked over 40 in one week.
In most situations, the federal minimum wage is the lowest amount of money an employer can pay an employee without violating any employment laws. Varied states and some cities in others set their own minimum wages higher than $7.25 per hour. This means that an employee paid at or below these lower rates will usually take home less pay than a worker in one of the states with a higher rate.
Let’s take a look at the current minimum wage in states throughout the US:
Minimum Wage by State & New 2021 Changes
| Name | Minimum Wage Rate |
| Alabama | $7.25 / hour |
| Alaska | $10.34 / hour |
| Arizona | $12.15 / hour |
| Arkansas | $11.00 / hour |
| California | $13.00 / hour |
| Colorado | $12.32 / hour |
| Connecticut | $12.00 / hour |
| Delaware | $9.25 / hour |
| Florida | $8.65 / hour |
| Georgia | $7.25 / hour |
| Hawaii | $10.10 / hour |
| Idaho | $7.25 / hour |
| Illinois | $11.00 / hour |
| Indiana | $7.25 / hour |
| Iowa | $7.25 / hour |
| Kansas | $7.25 / hour |
| Kentucky | $7.25 / hour |
| Louisiana | $7.25 / hour |
| Maine | $12.15 / hour |
| Maryland | $11.75 / hour |
| Massachusetts | $13.50 / hour |
| Michigan | $9.65 / hour |
| Minnesota | $10.08 / hour |
| Mississippi | $7.25 / hour |
| Missouri | $10.30 / hour |
| Montana | $8.75 / hour |
| Nebraska | $9.00 / hour |
| Nevada | $9.75 / hour |
| New Hampshire | $7.25 / hour |
| New Jersey | $12.00 / hour |
| New Mexico | $10.50 / hour |
| New York | $12.50 / hour |
| North Carolina | $7.25 / hour |
| North Dakota | $7.25 / hour |
| Ohio | $8.80 / hour |
| Oklahoma | $7.25 / hour |
| Oregon | $12.00 / hour |
| Pennsylvania | $7.25 / hour |
| Rhode Island | $11.50 / hour |
| South Carolina | $7.25 / hour |
| South Dakota | $9.45 / hour |
| Tennessee | $7.25 / hour |
| Texas | $7.25 / hour |
| Utah | $7.25 / hour |
| Vermont | $11.75 / hour |
| Virginia | $7.25 / hour |
| Washington | $13.69 / hour |
| West Virginia | $8.75 / hour |
| Wisconsin | $7.25 / hour |
| Wyoming | $7.25 / hour |
| Puerto Rico | $6.55 / hour |
| District of Columbia | $15.00 / hour |
| Federal | $7.25 / hour |
Source: Minimum-Wage.org
In conclusion, it’s important to know the federal minimum wage for both your workforce and any part-time workers you might employ to ensure you don’t violate any employment regulations and run afoul of state and federal labor laws.
So long as you understand the minimum wage guidelines, and enact them wherever appropriate, your business or company can continue to grow legally and sustainably.
Lastly, remember to rely on the Federal Minimum Wage Guide for further clarification where necessary!
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