What is the current federal minimum wage?
The federal minimum wage in the country has not been raised since 2009- the longest period with no increase since the minimum wage was established in 1938.
This year marks the 15th anniversary of the last increase in the federal minimum wage. In 2009, the hourly rate of $7.25 went into effect, and it has remained at this number to this day. Some states have established higher hourly wages, but a number of them have stuck to this 15-year-old amount.
State jurisdictions have a right to establish their own wage laws separate from the federal minimum wage. Local wage laws can override federal guidelines, if the state minimum rate is higher than the national amount. If a state’s minimum wage is lower than the federal minimum, the worker would receive the higher rate of $7.25.
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States can set automatic wage increases
Some states have legislation that sets automatic annual increases, while others link their increases to inflation so as not to affect the purchasing power of their workers.
A number of states apply their increases at the beginning of each year, while others do so in July.
Which states have the highest minimum wage?
Several states have implemented minimum wage hikes this year, among them, those who already pay their workers the highest rates in the United States. These states plus the District of Columbia have the highest minimum wage amounts in the country:
- District of Columbia: $17
- Washington: $16.28
- California: $16
- New York City and Nassau, Suffolk, and Westchester counties: $16
- Connecticut: $15.69
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Which states have no set minimum wage?
The following states have no state minimum wage, or their rate is lower than the national amount. Employers subject to the Fair Labor Standards Act must pay their employees the current federal minimum wage of $7.25 per hour.
- Alabama
- Georgia
- Louisiana
- Mississippi
- South Carolina
- Tennessee
- Wyoming