Minimum wage
in USA.

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United States

What is the minimum wage in USA per hour?

The federal minimum wage in the USA is currently $7.25 per hour. Note that the USA has minimum wage laws at both the federal and state level. Employees working in states that have minimum wage laws are entitled to the higher of the two minimum wages.

Federal minimum wage provisions are covered under the Fair Labor Standards Act (1948) which sets out two forms of coverage: “enterprise coverage” and “individual coverage.”

Enterprise Coverage refers to employees working for enterprises with at least two employees with;

annual dollar volume of sales or business done of at least $500,000
hospitals, businesses providing medical or nursing care for residents, schools and preschools, and government agencies.

Individual Coverage refers to those employees who don’t qualify for enterprise coverage provided their work regularly involves “interstate commerce”. Essentially, the FLSA covers any individual workers who are “engaged in commerce or in the production of goods for commerce.”

Are there regional variations in USA minimum wage?

Yes. Of the 50 states that make up the USA; 15 have minimum wages that equal the federal minimum wage, 5 have no minimum wage laws (Alabama, Louisiana, Mississippi, South Carolina, Tennessee), and 30 have minimum wages that are higher than the federal minimum.

State	Minimum Wage	Effective
Alaska	$10.85	01/01/2023
Arkansas	$11.00	01/01/2023
Arizona	$13.85	01/01/2023
California	$15.50	01/01/2023
Colorado	$13.65	01/01/2023
Connecticut	$14.00	01/01/2023
Delaware	$11.75	01/01/2023
Florida	$11.00	01/01/2023
Hawaii	$12.00	01/01/2023
Illinois	$13.00	01/01/2023
Massachusetts	$15.00	01/01/2023
Maryland	$13.25	01/01/2023
Maine	$13.80	01/01/2023
Michigan	$10.10	01/01/2023
Minnesota	$10.59	01/01/2023
Missouri	$12.00	01/01/2023
Montana	$9.95	01/01/2023
Nebraska	$10.50	01/01/2023
New Jersey	$14.13	01/01/2023
New Mexico	$12.00	01/01/2023
Nevada	$10.50	01/01/2023
New York	$14.20	01/01/2023
Ohio	$10.10	01/01/2023
Oregon	$13.50	01/01/2023
Rhode Island	$13.00	01/01/2023
South Dakota	$10.80	01/01/2023
Virginia	$12.00	01/01/2023
Vermont	$13.18	01/01/2023
Washington	$15.74	01/01/2023
West Virginia	$8.75	01/01/2023

Washington D.C. ($16.50), Guam ($9.25), Puerto Rico ($8.50) & the US Virgin Islands ($10.50) also have higher minimum wage rates that are higher than the federal minimum wage.

How has minimum wage in USA changed in the last 5 years and beyond?

The federal minimum wage in the USA has remained unchanged at $7.25 per hour since 2017. In fact, despite political movements such as the Fight for $15 and the Raise the Wage Act, the federal minimum wage in the USA has been set at $7.25 since 2009.

There have been increases to the minimum wage at the state and local levels though. A number of states have passed legislation that gradually increases the minimum wage to $15 and three states (California, Washington, Massachusetts) already have minimum wages above $15.

A number of major cities, including San Francisco, New York City and Seattle have also taken steps to raise their municipal minimum wage to $15 per hour.

USA – Minimum Wage Over the Years

Date	Min. wage, hourly rate (USD)
2009	7.25
2008	6.55
2007	5.85
1997	5.15
1996	4.75

How does the minimum wage in USA compare to surrounding countries?

At the time of writing, Canada’s federal minimum wage of CAD$15.55 is worth $11.56. This makes Canada’s federal minimum wage considerably higher than the federal minimum wage in the USA.

The difference between the USA and Canada’s federal minimum wages is not reflected at the state level. In USD terms, the majority of US states have higher minimum wages than Canadian provinces and territories.

Is there a different minimum wage for expats in USA?

No. As set out in the Fair Labor Standards Act (1948) and equivalent state and local laws, the minimum wage is the same for both US citizens and non-citizens.

Hiring in USA, Made Easy

Your business can easily hire employees in USA without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

Is it possible to hire skilled employees close to the minimum wage in the USA?

It’s unlikely that skilled employees will accept remuneration packages that effectively pay close to the minimum wage. Most employees earning minimum wage in the USA are employed in service jobs, retail and agriculture.

What happens if state or local law requires payment of a higher minimum wage than federal law?

In such circumstances, the higher minimum wage applies.

In the USA, how often does the federal minimum wage increase?

Unlike other countries, the USA does not increase its federal minimum wage automatically at set intervals. Instead, The United States Congress must pass a bill which the President then signs into law.

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