LABOR FACTS

Federal and State Minimum Wage Rates in 2017

The minimum wage is the lowest amount a worker can receive for an hour of his/her work. It is also called “pay floor”. This minimum pay for both private and public sectors is determined by the Fair Labor Standard Act.

Federal Minimum Wage

Federal minimum wage history shows numerous changes over the years. At present, the federal minimum wage is $7.25 per hour (the same since July 2019). But, the minimum wage rate is higher in some states. In such a situation employers are obliged to pay their workers the higher minimum wage.

Starting from January 1, 2017, employees with federal contracts receive no less than $10.20 per hour thanks to the legislation enacted by the U.S. Department of Labor (DOL). The minimum of $6.80 per hour is paid to tipped employees connected to federal contracts.

There are exemptions, though. Some employees are not in the group of workers eligible to have the minimum wage guaranteed. Those would be employees not protected by the Fair Labor Standards Act, tipped employees (like waitstuff) and others.

State Minimum Wage

There are states where the minimum wage differs between cities and counties which is caused by various costs of living. States usually increase the minimum wage during the year. As for now, 29 states have the minimum wage higher than the federal one and 5 states(Alabama, Louisiana, Mississippi, South Carolina, and Tennessee) have not set the minimum wage.

Below you can find a list of minimum wages in different states, but it can be changed during the calendar year.

  • Alabama: $7.25 (Federal Minimum Wage)
  • Alaska: $9.80(Indexed Annual increases will begin on 1/12017)
  • Arizona: $10.00 ($10.00 to $12.00 in $0.50 Indexed Annual Increases between 1/1/2017 to 1/1/2020)
  • Arkansas: $8.50
  • California: $10.50  ($11.00 to $15.00 in $1.00 Indexed Annual Increases between 1/1/2018 to 1/1/2022)
    – Emeryville: $12.25  for small businesses with 55 employees, $14.44 companies with more than 55 employers
    – Los Angeles: $10.50 effective July 2016 with increases each year until it reaches $15 in 2020
    – Oakland: $12.25
    – Richmond: $12.30, and $13 in 2018 (with exceptions based on employer)
    – San Diego: $11.50
    – San Francisco: $14.00 effective 7/1/2017,  $15.00 effective 7/1/2018
    – San Jose: $10.30
  • Colorado: $9.30($9.30 to $12.00 in $0.90 Indexed Annual Increases between 1/1/2018 and 1/1/2020)
  • Connecticut: $10.10
  • Delaware: $8.25
  • District of Columbia: $11.50 ($12.50 to $15 with Indexed Annual Increases between 7/1/2017 and 7/1/2020)
  • Florida: $8.10*
    – Miami Beach: $10.31
  • Georgia: $5.15 (if covered by Fair Labor Standards – $7.25)
  • Guam: $8.25
  • Hawaii$9.25, $10.10 by 1/1/2018
  • Idaho: $7.25
  • Illinois: $8.25
    – Chicago $11.00 July 2017, $12.00 July 2018, $13.00 July 2019
  • Indiana: $7.25
  • Iowa: $7.25
  • Kansas: $7.25
  • Kentucky: $7.25
    – Louisville: $9.00 July 2017)
    – Kentucky State Workers $10.10
  • Louisiana: $7.25 (Federal Minimum Wage)
  • Maine: $9.00 ($10.00 to $12.00 in $0.50 Indexed Annual Increases between 1/1/2017 to 1/1/2020)
  • Maryland$9.25 7/1/2017,  $10.10 7/1/2018
  • Massachusetts$11.00  ($3.75 for tipped employees), $16.50 per hour for working on a Sunday
  • Michigan$8.90, $9.25 by 1/12018
  • Minnesota Large employers are required to pay workers $9.50/hour and small employers $7.75 (Indexed Annual increases will begin on 1/1/2018)
  • Mississippi: $7.25 (Federal Minimum Wage)
  • Missouri: $7.70*
  • Montana: $8.15* ($4.00 for businesses with gross annual sales of $110,000 or less)
  • Nebraska$9.00
  • Nevada: $7.25 for employees who receive qualifying health benefits, $8.25 for employees who do not.*
  • New Hampshire: $7.25 (Federal Minimum Wage, as State Minimum wage was repealed in 2011)
  • New Jersey: $8.44*
  • New Mexico: $7.50
    – Albuquerque: $8.75 ($7.75 with benefits)
  • New York: $9.70 ($10.40 by 12/31/2017 with $0.70 Indexed Annual Increases from 12/31/2017 to $12.50 by 12/31/2020. Starting 1/1/2021, the rate will be adjusted annually for inflation until it reaches $15 an hour) $10.75 for fast food workers in NYS and $12 in NYC, with limitations)
  • North Carolina: $7.25
  • North Dakota: $7.25
  • Ohio: $8.15($7:25 for employers grossing $283,000 or less)
  • Oklahoma: $7.25
  • Oregon: $9.75, $10.25 by 7/1/2017. (or higher based on county density) (From $10.25 to $13.50 in $0.50 intervals from 7/1/2017 to 7/1/2022)
  • Pennsylvania: $7.25
  • Puerto Rico: $7.25
  • Rhode Island: $9.60
  • South Carolina: $7.25 (Federal Minimum Wage)
  • South Dakota: $8.65 *
  • Tennessee: $7.25 (Federal Minimum Wage)
  • Texas: $7.25
  • Utah: $7.25
  • Vermont$10, $10.50 by January 1, 2018*
  • Virgin Islands: $7.25 ($4.30 for employers grossing $150,000 or less)
  • Virginia: $7.25
  • Washington: $11.00* (From $11.00 to $13.50 in $0.50 intervals from 1/1/2017- 1/2/2020)
    – Seattle: $15 (for businesses over 500 employees in 2017 and for all businesses by 2021
  • West Virginia$8.75
  • Wisconsin: $7.25
  • Wyoming: $5.15** (**Federal Minimum Wage takes precedent as state minimum is less than $7.25)