State and Federal Minimum Wage Laws

State and federal law regulate minimum wage rates. Minimum wage laws provide the minimum amount employers can pay you for work. There may be lower rates for certain types of workers. If your job pays below the minimum wage, you can file a wage and hour claim for compensation.

There is a federal minimum wage rate, but most states have higher minimum wage laws. Some cities and counties also have a different local minimum wage. If you have questions about the minimum wage requirements in your area, talk to a wage law attorney for legal advice.

Overview of Minimum Wage Laws

The minimum wage is the lowest hourly wage an employer can pay workers. 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. The current federal minimum wage is $7.25. The federal minimum wage has not changed since July 2009.

Minimum Wages for Exempt Workers

Most hourly employees are covered by state and federal minimum wage acts. This includes part-time and full-time workers. However, the FLSA does not apply to exempt workers. FLSA-exempt employees include executive, administrative, and professional employees (who must generally meet a salary threshold) and outside sales workers (who are not subject to the salary threshold). 

To qualify, exempt workers must earn at least the salary threshold set by the FLSA, which is subject to change. The threshold is $684 per week.

Differences Between State and Federal Minimum Wages

Some states have no local minimum wage laws. A few states have minimum wages below the federal standards. If the state minimum wage is below the federal rate, employers generally must pay the federal minimum wage, unless specific state provisions apply. About 20 states follow the federal minimum wage rate.

Most states have passed their own minimum wage laws providing for higher than the federal minimum. States regularly review and increase the minimum wage rate to account for the higher cost of living and inflation. Several states have built-in minimum wage increases based on the consumer price index (CPI).

If both the state and federal minimum wage cover you, you’re entitled to the higher of the two. As of July 1, 2025, the District of Columbia increased its minimum wage to $17.95 per hour. In Washington state, the minimum wage rate is $16.66.

State Minimum Wage Rates

The following is a table of the minimum wage rates in each state, with a link to the state government’s official website. The rates are current as of late 2025.

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When Employers Can Pay Below the Minimum Wage

Many states have different minimum wage laws for certain types of workers. These workers can get less than the state minimum wage for their work. Types of work with lower pay rates may include:

• Tipped employees
• Temporary training rate
• Seasonal employment jobs
• Rural areas
• Some jobs for workers with disabilities
• Small employers
• Piece rate workers
• Agricultural workers

The most common exception is for tipped workers. Tipped employees include those like restaurant servers, bartenders, and taxi drivers. Under federal law, a tipped employee is someone receiving at least $30 per month in tips. Employers can use a tip credit against the minimum wage. For the federal minimum wage, the minimum cash wage rate for tipped workers is $2.13.

County and Local Government Minimum Wage Laws

A number of states have cities or counties with higher minimum wage rates than the state minimum. If you work in a city or county with a higher local minimum wage than state law, you get the higher rate. States with higher pay rates in certain counties or cities include:

• Arizona
• California
• Colorado
• Illinois
• Maryland
• Maine
• Minnesota
• New Mexico
• New York
• Washington

In these states, the wage rate can vary based on where you are employed. For example, the minimum wage in New York City and most of the surrounding areas is $16.50, but it is $15.50 in other parts of the state. California alone has about 40 cities and counties with their own minimum wage standards.

Ensuring Compliance with Minimum Wage Regulations

The U.S. Department of Labor (DOL) Wage and Hour Division enforces the federal minimum wage. It does so through investigating complaints and informing workers of their labor law rights. The federal government requires employers to post minimum wage rates where visible to employees.

State agencies enforce state minimum wage laws. Most states have a process for filing a minimum wage complaint. Contact your state wage and hour division to understand the process for reporting wage theft.

Employers can face fines and penalties for violating minimum wage laws. When employees report wage theft, they can generally get back pay and additional damages. In many cases, the employer has to pay the employees’ legal costs to file a wage complaint lawsuit.

Updates in State and Federal Minimum Wage Laws

The federal minimum wage hasn’t increased since 2009. Some lawmakers have introduced legislation to increase the federal minimum wage without success. Many workers struggle with the costs of living, healthcare, and inflation. Unfortunately for workers in states without higher minimum wages, they are subject to the low federal rate.

Minimum wage laws can change at any time. Many states have annual minimum wage increases. Check with a local wage and hour lawyer to find out the minimum wage rate where you work.

Contact an Employment Lawyer for Help

Some employers take advantage of workers who don’t know their wage and hour law rights. If you think you aren’t receiving the wages earned, an employment lawyer can investigate. Your attorney can explain your options and help you get your money. In many cases, your employer will have to pay your legal fees. For questions about the minimum wage in your state, contact a wage and employment lawyer.