State and Federal Minimum Wage Laws

U.S. labor groups have supported a minimum wage for over a century. Several states attempted to pass minimum wage laws in the early 1900s. However, the U.S. Supreme Court declared these laws unconstitutional. In 1938, the federal government’s Fair Labor Standards Act survived the court, marking the beginning of the minimum wage in the U.S.

Many states have passed minimum wage laws to surpass the federal minimum wage. If you have questions about the minimum wage requirements in your area, it’s a good idea to talk to an employment law attorney handling wage disputes in your state.

What Is the Minimum Wage?

The minimum wage is the lowest hourly wage your employer can pay you. Congress enacted The Fair Labor Standards Act (FLSA) in 1938. It’s the primary federal minimum wage law. Congress’s goal with the FLSA was to protect workers from unfair labor practices. The FLSA does the following:

• Sets the federal minimum wage
• Requires overtime pay for over 40 hours of work in the workweek
• Prohibits child labor

Minimum wage rates have changed many times since Congress first passed the law. It sits at $7.25 per hour as of 2024.

Most states have passed minimum wage acts that supplement the FLSA. To date, only the following states don’t have their own minimum wage law:

• Alabama
• Louisiana
• Mississippi
• South Carolina
• Tennessee

State minimum wage rates generally reflect the cost of living in the state. If both the state and federal minimum wage covers you, you’re entitled to the higher of the two.

As of January 1, 2024, the District of Columbia (Washington, D.C.) has the highest minimum wage of $17.00 per hour. Employers covered by the FLSA and D.C.’s minimum wage law must pay the D.C. wage. Georgia and Wyoming have the lowest minimum wage of $5.15 per hour. Employers covered by the FLSA must pay the federal minimum wage in those states.

State minimum wage laws may have a tiered wage system. The following are some examples:

• In Minnesota, small employers pay $8.85 per hour. Large employers must pay $10.85 per hour.
• In Nevada, the minimum wage is $10.50. It’s $9.50 if your employer includes health insurance benefits. The state will replace this tiered wage system in July 2024.
• In Oklahoma, the wage is $2 per hour if your employer has fewer than 10 full-time employees at one location. This wage also applies if your employer has $100,000 or less in annual gross sales, regardless of the number of employees. You must get the federal minimum wage if you fall under the FLSA.
• Oregon’s minimum wage varies depending on your work location. The standard minimum wage is $14.20 per hour. In the Portland Metro area, it is $15.45 per hour. In non-urban counties, it is $13.20 per hour.

Who Does the Minimum Wage Apply To?

Federal minimum wage laws apply to most workers. The FLSA generally covers employees who do one of the following:

• Are regularly involved in interstate commerce or the production of goods for commerce
• Work in hospitals, residential health care, schools, or government agencies
• Work as domestic service workers like housekeepers, full-time babysitters, and cooks

States vary slightly in who their minimum wage covers. But they generally cover most employees in the state.

What Are Common Exceptions to the Minimum Wage?

The FLSA has an exemption from the minimum wage for tipped employees. Your employer must pay you at least $2.13/hr plus tips. But your employer must make up the difference if your total pay, including tips, doesn’t at least equal the minimum wage. Your employer must pay you the minimum wage unless you get more than $30 monthly in tips.

Most states also have exemptions to the minimum wage. These exemptions let your employer pay you less than the minimum wage. Tipped employees are a typical example. For instance, Florida’s minimum wage is $13.00 per hour. However, your employer only must pay you $8.98 per hour if you earn tips. Some states, like Montana, don’t have an exception for tipped employees.

Employees with disabilities are also typically exempt. For example, in California, your employer can pay less than the minimum wage if you have a physical or mental disability.

How Does the Government Enforce the Minimum Wage?

The U.S. Department of Labor (DOL) enforces the federal minimum wage. It does so through complaint investigations and education. State agencies enforce state minimum wage laws. Most states have a process for filing a minimum wage complaint. For example, you can file a complaint in Missouri with the state’s Department of Labor and Industrial Relations.

Should We Raise the Minimum Wage?

Whether we should raise the minimum wage is a popular political argument. Some favor not having a minimum wage at all. All sides have compelling arguments.

People who are against raising the minimum wage say companies should decide what wage to pay based on market forces. They claim higher wages don’t boost the spending power of workers.

Supporters of a higher minimum wage say an increase will give everyone a living wage to comfortably live on when working full-time. They also say it will increase worker productivity and help companies keep employees.

Contact an Employment Lawyer for Help

If you have questions about the minimum wage in your state, you should contact an employment lawyer. Some employers try to take advantage of workers who aren’t aware of their rights to a minimum wage. If you think you aren’t receiving the wages you are owed, a lawyer can investigate your case and help you decide the best actions to take. It could include filing a lawsuit against your employer.