The minimum wage in the USA is set at three levels: federal, state, and local. The federal minimum wage applies in all USA states. If the job is under federal law, you cannot be paid less. States have the authority to set their own minimum wage. This applies, for example, to employers not conducting business outside the state and with annual sales of up to $500,000.
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Federal Minimum Wage in the USA in 2024
To add a layer of complexity, there are two levels of minimum wage: one for employees receiving tips and another for other employees.
Jobs like taxi driving, waiting tables, bartending, casino dealing, or hotel portering pay a lower minimum wage than positions not receiving at least $30 per month in tips. Jobs like cooking, janitorial work or kitchen assistance are automatically set at a higher rate; the difference between the minimum wage with tips and the minimum wage without tips can be up to four times.
USA Minimum Wage 2024
As of July 24, 2009, the minimum hourly wage is set at $7.25.
USA Minimum Wage for Tipped Employment
The current minimum wage is $2.13 per hour. If the sum of the minimum wage and tips is less than $7.25, the employer will make up the difference.
Young People’s Wage for Under 20s
The fixed minimum hourly wage of $4.25 is in effect for the first 90 calendar days that a person under 20 is employed.
State Minimum Wages in the USA in 2024
Individual states have the option to set their own minimum wage. The highest minimum wage in the USA is in Washington D. C., California, and Washington state. The lowest minimum wage in the USA is in Georgia and Wyoming.
The figures in the table are valid as of January 2, 2024.
| State | Minimum wage | Minimum wage without tips |
|---|---|---|
| Alabama | not | not |
| Alaska2) | $11.73 | $11.73 |
| Arizona2) | $14.35 | $11.35 |
| Arkansas | $11.00 | $2.63 |
| California2, 5) | $16.00 | $16.00 |
| Colorado1) | $14.42 | $11.40 |
| Connecticut2) | $15.69 | $6.38 |
| Delaware | $13.25 | $2.23 |
| Florida2) | $12.00 | $8.98 |
| Georgia3) | $5.15 | $2.13 |
| Hawaii | $14.00 | $12.75 |
| Idaho | $7.25 | $3.35 |
| Illinois | $14.00 | $8.40 |
| Indiana | $7.25 | $2.13 |
| Iowa4) | $7.25 | $4.35 |
| Kansas | $7.25 | $2.13 |
| Kentucky | $7.25 | $2.13 |
| Louisiana | not | not |
| Maine2) | $14.15 | $7.08 |
| Maryland | $15.00 | $3.63 |
| Massachusetts | $15.00 | $6.75 |
| Michigan2) | $10.33 | $3.93 |
| Minnesota2) | $10.85 | $10.856) |
| Mississippi | None | not |
| Missouri2) | $12.30 | $6.15 |
| Montana2) | $10.30 | $10.30 |
| Nebraska | $12.00 | $2.13 |
| Nevada2) | $11.25 | $11.25 |
| New Hampshire | $7.25 | $3.27 |
| New Jersey2) | $15.13 | $5.26 |
| New Mexico | $12.00 | $3.00 |
| New York | $15.00 | 7) |
| North Carolina | $7.25 | $2.13 |
| North Dakota | $7.25 | $4.86 |
| Ohio2) | $10.45 | $5.25 |
| Oklahoma8) | $7.25 | $2.13 |
| Oregon2, 9) | $14.20 | $14.20 |
| Pennsylvania | $7.25 | $2.83 |
| Rhode Island | $14.00 | $3.89 |
| South Carolina | not | not |
| South Dakota1) | $11.20 | $5.60 |
| Tennessee | not | not |
| Texas | $7.25 | $2.13 |
| Utah | $7.25 | $2.13 |
| Vermont2) | $13.67 | $6.84 |
| Virginia2) | $12.00 | $2.13 |
| Washington2, 10) | $16.28 | $16.28 |
| Washington D. C. | $17.00 | $8.00 |
| West Virginia11) | $8.75 | $2.62 |
| Wisconsin | $7.25 | $2.33 |
| Wyoming | $5.15 | $2.13 |
1) Changes annually depending on current inflation.
2) Changes annually depending on the cost of living index.
3) Minimum wage only applies to employers with 6 or more employees.
4) The minimum wage regulation does not apply to most businesses with a turnover of less than $300,000 per year.
5) Some cities set their own minimum wage – for example, San Francisco $18.07.
6) Employers with annual sales up to $500,000 not operating out of state may pay $8.63.
7) The minimum wage varies depending on the specific job.
8) Employers with a turnover of up to $100,000 and up to 10 employees in the establishment may pay $2.00.
9) The $13.20 rate applies in rural counties, $14.20 applies outside rural counties, and $15.45 applies in the Portland metropolitan area. The rate for tipped employees is the same.
10) The minimum wage is based on the cost of living index.
11) The minimum wage applies only in establishments with 6 or more employees.
Minimum Wage for Youth and Trainee Employees
Some states set different wages for minors and workers in training:
- Illinois – $10.50
- Michigan – for trainees $4.25, for minors $8.78
- Minnesota – $8.85
- New Jersey – $9.90
- Ohio – for minors under 16 $7.25
- Washington – $13.84
Discussion (2)
Hi, I’d like to know how it is in the US with tips. I have read that it is not compulsory, but everyone gives it and it is therefore expected – it is supposedly the main income of some employees. I wonder who to pay and how much is given that way. Thank you :)
Hi Jeromie, check out the article on tipping in the US, it tells you everything.