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[[File:USMinimumWage.svg|right|thumb|300px|Minimum Wage by U.S. state and U.S. territory (American Samoamarker, Guammarker, Puerto Rico, Virgin Islands), as of July 24, 2009.

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This is a list of the minimum wages (per hour) in each state and territory of the United Statesmarker, for jobs covered by federal minimum wage laws. If the job is not subject to the federal Fair Labor Standards Act, then state, city, or other local laws may determine the minimum wage. A common exemption to the federal minimum wage is a company having revenue of less than $500,000/year while not engaging in any interstate commerce.

Under the federal law, workers that receive a portion of their salary from tips, such as wait staff, are only required to have their total compensation, including tips, to meet the minimum wage, so often their hourly wage, not including tips, is less than the minimum wage.

In addition, some counties and/or cities within states may observe a higher minimum wage than the rest of the state in which they are located; sometimes this higher wage will apply only to businesses that are under contract to the local government itself, while in other cases the higher minimum will be enforced across the board.

Currently, Washingtonmarker has the highest minimum wages of all 50 states, followed by Oregonmarker and Vermontmarker. Kansasmarker for many years had the lowest state approved minimum wage, set at $2.65, but that will change to $7.25 starting on January 1, 2010. Only 20,000 workers in Kansas are currently paid less than the federal minimum wage. Five states have no minimum wage enacted under state law. In these states, the current federal minimum wage applies for most jobs. Out of the entire country, states or cities, Santa Femarker has the highest minimum wage at $9.92 as of January 1, 2009.

Minimum Wage levels

Federal

Federal Level Notes
Federal $7.25 The Fair Labor Standards Act sets the federal minimum wage at $7.25 per hour. The Fair Minimum Wage Act of 2007, signed into law on May 25, 2007, increased the minimum wage over two years.


State

Note: The following tables can be sorted alphabetically or numerically using the icon.
State Level Notes
Alabamamarker None Federal minimum applies.
Alaskamarker $7.25
Arizonamarker $7.25 Pursuant to Arizona Proposition 202. This rate will be automatically adjusted annually based on the U.S. Consumer Price Index. This rate increase does not affect student workers in places such as libraries and cafeterias because those positions are given by universities, which are State entities.
Arkansasmarker $6.25 Applicable to employers of 4 or more employees
Californiamarker $8.00 San Franciscomarker $9.79. IWC Order No. 4-2001 1,A,1,f states that exempt employees must make twice the state minimum wage.
Coloradomarker $7.28 Tipped employees earn $4.26/hour.
Connecticutmarker $8.00 This rate will increase to $8.25 on January 1, 2010. Tipped employees earn $5.41/hour.
Delawaremarker $7.25
District of Columbiamarker $8.25 This rate is automatically set at $1 above the Federal minimum wage rate if the District of Columbia rate is lower.
Floridamarker $7.25 Rises with inflation. $4.19 per hour for tipped employees.
Georgiamarker $5.15 The State Minimum Wage is Only Applicable to employers of 6 or more employees. If less than 6 then there is No Minimum at all.
Hawaiimarker $7.25
Idahomarker $7.25
Illinoismarker $8.00 The minimum wage will increase to $8.25 on July 1, 2010. Employers may pay anyone under the age of 18 $0.50 less. Tipped employees earn $4.65 (employers may claim credit for tips, up to 40% of wage).
Indianamarker $7.25
Iowamarker $7.25 Most small retail and service establishments grossing less than 300,000 annually are not required to pay the minimum wage. Tipped employees can be paid 60% of the minimum wage, which is currently $4.35.
Kansasmarker $2.65 Increasing to $7.25 on January 1, 2010. Employees not covered by the Federal Fair Labor Standard Act are subject to Kansas's current minimum wage laws.
Kentuckymarker $7.25
Louisianamarker None Federal minimum applies.
Mainemarker $7.50
Marylandmarker $7.25
Massachusettsmarker $8.00 $2.63 for service (tipped) employees, $1.60 for agricultural employees.
Michiganmarker $7.40 ($2.65 for service (tipped) employees, Minors 16-17 years of age may be paid 85% of the minimum hourly wage rate (currently $6.29 per hour). Training wage for new employees ages 16 to 19 of $4.25/hour for first 90 days of employment.
Minnesotamarker $6.15
Mississippimarker None Federal minimum applies.
Missourimarker $7.25 This rate is automatically adjusted annually based on the U.S. Consumer Price Index rounded to the nearest five cents.
Montanamarker $7.25 This rate is automatically adjusted annually based on the U.S. Consumer Price Index. Tip income may not be applied as an offset to an employee's pay rate. The minimum pay is $4/hour for business with less than $110,000 in annual sales.
Nebraskamarker $7.25
Nevadamarker $7.55 Rises with inflation.
New Hampshiremarker $7.25 The minimum wage is automatically replaced with the Federal minimum wage rate if it is higher than the State minimum wage rate.
New Jerseymarker $7.25
New Mexicomarker $7.50 Not linked to the federal rate.$9.92 in Santa Femarker (now covering all employees, since expansion to employers with less than 25 employees, as of January 1, 2008).


As of January 1, 2009, Santa Fe's rate will have a cost of living increase, thus keeping it the country's highest minimum wage.
New Yorkmarker $7.25 New York also has a minimum for exempt employees $536.10/week as of January 1, 2007.
North Carolinamarker $7.25
North Dakotamarker $7.25
Ohiomarker $7.30 $7.25 for 14 and 15 year olds and those whose employers gross less than $267,000. This rate is automatically adjusted annually on every January 1 based on the U.S. Consumer Price Index. $3.65 plus tips for tipped employees It will remain at $7.30 for 2010.
Oklahomamarker $7.25 Federal minimum wage used as reference; no actual amounts written in law. $2.00/hour for work not covered by federal minimum wage OK Statutes 40-197.5
Oregonmarker $8.40 Rises with inflation.
Pennsylvaniamarker $7.25
Rhode Islandmarker $7.40 $2.89 for employees receiving tips.
South Carolinamarker None Federal minimum applies.
South Dakotamarker $7.25
Tennesseemarker None Federal minimum applies.
Texasmarker $7.25 Federal minimum wage used as reference; no actual amounts written in law.
Utahmarker $7.25 Federal minimum wage used as reference after legislative action; no actual amounts written in law. Current rate took effect on September 8, 2007.
Vermontmarker $8.06 Rises with inflation.
Virginiamarker $7.25 Federal minimum wage used as reference; .
Washingtonmarker $8.55 Employees aged 14 or 15 may be paid 85% of the minimum wage, which for 2009 is $7.27 per hour. Increases annually by a voter-approved cost-of-living adjustment based on the federal Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
West Virginiamarker $7.25 Applicable to employers of 6 or more employees at one location not involved in interstate commerce.
Wisconsinmarker $7.25
Wyomingmarker $5.15 Not linked to the federal rate.


Territory

Territory Level Notes
American Samoamarker $2.68-$4.09 Varies by industry. Planned increases to $7.25 by 2014.
Guammarker $5.85
Northern Mariana Islandsmarker $3.55 Since July 23, 2007. Planned increases to $7.25 by 2015.
Puerto Rico $4.25 to $7.25 Employers covered by the Federal Fair Labor Standards Act (FLSA) are subject only to the Federal minimum.
U.S.marker Virgin Islandsmarker $6.15 Except businesses with gross annual receipts of less than $150,000, then $4.30. (In practice, the Virgin Islands adopts the Federal per hour rate)


History of the Federal Minimum Wage

The U.S. Federal Minimum Wage, originally created by the Fair Labor Standards Act in 1938, has risen in nominal terms over time. Originally $0.25 per hour, the federal minimum hourly wage for nonfarm workers rose accordingly:
History of the federal minimum wage in real and nominal dollars in the United States.
Year Level Notes
1939 30 cents
1945 40 cents
1950 75 cents
1956 $1.00
1965 $1.25
1967 $1.00 Fell back to 1956 levels
1968 $1.15
1969 $1.30
1970 $1.45
1971 $1.60
1974 $1.90
1975 $2.00
1976 $2.20
1977 $2.30
1978 $2.65
1979 $2.90
1980 $3.10
1981 $3.35
1990 $3.80
1991 $4.25
1996 $4.75
1997 $5.15
2007 $5.85
2008 $6.55
2009 $7.25


The Fair Labor Standards Act and its subsequent amendments have created a schedule for increases in the Minimum Wage. Major adjustments to this schedule took place in years such as 1961 and 1966.

Employers are exempt from paying certain kinds of workers the minimum wage of $7.25 per hour. A lower minimum exists for these workers. For example, in 1997, a subminimum wage of $4.25 an hour was created for employees under 20 years of age during their first 90 days with an employer.

All above information in this section is based on the U.S. Department of Labor web page at http://www.dol.gov/ESA/minwage/chart.htm .

Although the nominal minimum wage has been increasing over time, the value of this wage in real terms has fluctuated due to inflation. http://oregonstate.edu/instruct/anth484/minwage.html suggests that the real value of the Federal Minimum Wage peaked in the late 1960s through the 1970s at a level that would be equivalent to more than $8.00 an hour in 2007 dollars, even though the minimum wage was between $1.00 and $3.00 in nominal terms during this time. By comparison, the 2006 minimum wage of $5.15 an hour is assessed as being lower in real terms than the Federal Minimum Wage had ever been since the increase to $0.75 in January 1950. Although, when adjusted for inflation, the 1933 rate of .30 per hour equates to $4.60 in 2008 dollars, however the actual minimum wage for 2008 is nearly double the inflation adjusted rate for 1933.

See also



References

  1. Associate Press: Kansas: Official says higher minimum wage may help 20,000
  2. "US minimum wage to get $2 boost". May 25, 2007. BBC News.
  3. FAQs
  4. http://www.dol.gov/esa/minwage/america.htm
  5. http://www.ica.state.az.us/minimumWage/index.html Arizona Department of Labor
  6. Minimum wage
  7. Office of Labor Standards Enforcement: Minimum Wage Ordinance (MWO)
  8. Colorado Minimum Wage Order Poster
  9. Illinois Department of Labor - Minimum Wage Law
  10. http://www.iowaworkforce.org/labor/wageandhourquestionsandanswers.pdf
  11. Executive Office of Labor and Workforce Development (EOLWD)
  12. http://www.dol.gov/esa/minwage/america.htm
  13. Nevada's Minimum Wage
  14. Minimum Wage Laws in the States. From the United States Department of Labor, Employment Standards Administration - Wage and Hour Division. The source page has a clickable US map with current and projected state-by-state minimum wage rates for each state.
  15. "City's minimum pay requirement expands to small businesses; state minimum kicks in". By Julie Ann Grimm. December 31, 2007. The Santa Fe New Mexican.
  16. Santa Fe Living Wage Network.
  17. Living wage
  18. http://www.com.ohio.gov/laws/docs/laws_2009MinimumWage.pdf
  19. http://www.com.ohio.gov/laws/docs/laws_2009MinimumWage.pdf
  20. Ohio Minimum Wage Won't Rise in 2010
  21. Texas Minimum Wage Law Summary
  22. http://www.dol.gov/esa/minwage/america.htm
  23. DOL WHD: Wage Rate in American Samoa
  24. DOI Office of Insular Affairs (OIA) -Statement of Nikolao I. Pula - February 28, 2008
  25. http://www.westegg.com/inflation/



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