Minimum Wage in The United States: Rates, Trends & Compliance

How Does The Minimum Wage Differ Between States?

The minimum wage in the United States varies widely from state to state because, while the federal minimum wage remains $7.25 per hour in 2026, many states have adopted higher minimums to better reflect local living costs. States such as California and Washington now have some of the highest minimum wages in the country – both well above $16 per hour – while states like Georgia and Wyoming technically set lower state minimums but generally default to the federal rate in practice.

In addition, a growing number of states automatically adjust their minimum wage each year based on inflation, while others leave their rates unchanged until new legislation is passed. This patchwork system means that workers earning the minimum wage can see dramatically different pay depending on where they live, resulting in significant disparities across the country.

Here is an overview of how minimum wage rates differ by state:
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Which States Plan to Raise Their Minimum Wage Soon?

Many U.S. states have scheduled minimum wage increases over the next few years, either through voter-approved measures, legislative action, or automatic inflation adjustments. These changes reflect efforts to keep wages in line with rising living costs and to move closer to a $15 per hour standard in several regions. Below is a list of states with planned increases and the timelines for their implementation:

Alaska – Set to increase to $14.00/hour on July 1, 2026, with future adjustments tied to inflation.

Florida – Scheduled to increase to $15.00/hour on September 30, 2026, under the state’s voter-approved phase-in plan.

Oregon – Regional minimum wages adjust annually based on inflation, with the next increase scheduled for July 1, 2026 – rates vary by zone.

Washington, D.C. – Adjusts its minimum wage annually, with the next increase scheduled for July 1, 2026.

Minimum Wage Changes Scheduled for 2027

Michigan – Following its increase to $13.73/hour in January 2026, the minimum wage is scheduled to continue rising through 2027, ultimately reaching $15.00/hour.

New York – After reaching $17.00/hour in New York City, Long Island, and Westchester County and $16.00/hour in the rest of the state in 2026, the minimum wage will begin automatic inflation indexing in 2027.

California – While the statewide rate reached $16.90/hour in 2026, additional increases may occur in 2027depending on inflation-based adjustment caps set in state law.

Missouri – Having reached $15.00/hour in 2026, future increases beginning in 2027 will be tied to inflation.

Are There Any Minimum Wage Variations?

Yes – minimum wage rules vary widely across the United States due to a mix of federal, state, and local laws. While the federal minimum wage remains $7.25 per hour in 2026, many states and cities set higher rates, and some apply different rules based on worker type, employer size, or location. These variations result in meaningful differences in how minimum wage laws apply across the country.

• Tipped employees (federal law) – Employers may pay as little as $2.13 per hour in direct cash wages, provided tips bring the worker’s total hourly earnings to at least $7.25 per hour. If tips fall short, the employer must make up the difference.
• States with no tip credit – Some states require tipped employees to be paid the full state minimum wage, with tips on top. For example, California’s statewide minimum wage is $16.90 per hour in 2026, and tipped workers must receive the full amount directly from their employer.
• Different rates based on employer size – Some states set different minimum wages for large and small employers. For example, Minnesota’s 2026 minimum wage is $11.41 per hour for large employers, while small employers pay a lower rate.

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How Does Minimum Wage Apply to Different Workers in the United States?

The application of minimum wage laws in the United States varies based on employment status, industry, and worker classification. While the federal minimum wage sets a baseline, state laws and specific regulations can influence how minimum wage standards are applied to different categories of workers.

Full-Time Employee Wages

Full-time employees are generally entitled to the applicable minimum wage in their state or locality. While the federal minimum wage remains $7.25 per hour in 2026, many states have set higher rates to better reflect local living costs and economic conditions. For example, Massachusetts continues to require a minimum wage of $15.00 per hour, while Colorado’s minimum wage increased to $15.16 per hour as of January 1, 2026, following its annual inflation adjustment.

Part-Time Employee Wages

Part-time employees are typically subject to the same minimum wage laws as full-time workers. Employers are required to pay part-time workers at least the minimum wage applicable in their state or locality for all hours worked. However, certain exceptions may apply, such as for tipped employees or those in specific industries.

Interns and Trainees

The entitlement of interns and trainees to minimum wage depends on various factors, including the nature of their work and the structure of their programs. The U.S. Department of Labor has established criteria to determine whether an intern or trainee is considered an employee under the Fair Labor Standards Act (FLSA). If these criteria are met, the individual may be exempt from minimum wage requirements. Otherwise, they are entitled to at least the federal or applicable state minimum wage.

Expatriates

Expatriates working in the United States are generally subject to the same minimum wage laws as domestic workers. Employers must comply with federal and state minimum wage regulations when compensating expatriate employees. However, visa classifications and employment agreements may influence specific terms of compensation.

Factors Influencing Minimum Wage in the United States

Several factors contribute to the determination and variation of minimum wage rates across the United States, including industry-specific considerations, economic conditions, and government policies.

Industry-Specific Variations

Minimum wage laws can vary significantly across different industries. Certain sectors, such as hospitality and agriculture, may have different minimum wage standards due to factors like tipping practices or seasonal work. For example, tipped employees in the hospitality industry may be subject to a lower base wage, provided that their tips bring their total earnings to at least the standard minimum wage.

Economic Conditions

Economic factors such as inflation, cost of living, and employment rates play a crucial role in shaping minimum wage policies. States with higher costs of living often implement higher minimum wages to ensure that workers can afford basic necessities. Additionally, adjustments to minimum wage rates may be made to account for inflation and maintain the purchasing power of workers.

Government Policies and Legislation

Government policies at both the federal and state levels significantly influence minimum wage rates. Legislation such as the Fair Labor Standards Act (FLSA) establishes federal minimum wage standards, while state legislatures may enact laws to set higher rates or address specific regional economic conditions. At the federal level, proposals such as the Raise the Wage Act of 2023 sought to increase the federal minimum wage to $17 per hour by 2028, highlighting continued legislative debate around wage standards.

However, as of 2026, no federal legislation has been enacted to raise the minimum wage above $7.25 per hour, leaving states and local governments to drive most wage increases.

Minimum Wage History and Trends in the United States

The federal minimum wage was first established in 1938 at $0.25 per hour. Over time, it has been raised periodically to reflect economic conditions and changes in the cost of living. The most recent federal increase occurred in 2009, when the rate was set at $7.25 per hour – a level that remains unchanged in 2026. In the absence of federal action, many states and local governments have taken the lead in raising minimum wages through legislation, ballot initiatives, or automatic inflation adjustments.

As of 2026, more than 20 states have increased their minimum wages above the federal level. Washington state now has one of the highest statewide minimum wages at $17.13 per hour, while Washington, D.C. continues to have the highest overall minimum wage at $17.95 per hour. At the other end of the spectrum, Georgia and Wyoming maintain statutory state minimum wages of $5.15 per hour, though employers covered by the Fair Labor Standards Act must still pay the federal minimum of $7.25 per hour.

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