The State adopts the federal minimum wage rate by reference if the federal rate is greater than the State rate. 5 The minimum wage for employers who employ fewer than 6 people and employees engaged in seasonal employment in New Jersey is $14.53 per hour. Michigan employers saw a slight raise to the minimum wage in 2020. The new standard rate is $9.65, and tipped workers are entitled to $3.67.
- The Minimum Wage Ordinance sets the minimum wage for employees working within city limits.
- While the federal minimum wage ($7.25 per hour) isn’t scheduled to change in 2020, many states and local jurisdictions have new minimum wage rates that took effect January 1, 2020.
- Residential workers (« live-in workers ») receive premium pay for hours worked over 44 in a payroll week.
- Until Congress acts again, the federal minimum wage will remain frozen at its current level.
- In 2025, the national average minimum wage is expected to rise by 3.8% to $9.24, driven by legislated increases in 21 states, including large states like California, Ohio, Arizona, and Virginia.
- Ohio also has different rates for employers based on their annual sales.
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- Second, the COMPS Order establishes a new minimum salary threshold for white-collar employee overtime exemptions.
- The « Grand Bargain » passed in 2018 raised wages on an annual schedule, phasing out time-and-a-half while prohibiting employers from requiring work on Sundays and holidays against employee wishes.
- The minimum wage in the Portland metro area is $15.95 per hour and the minimum wage in nonurban counties is $13.70 per hour.
- Most employers saw a minimum wage requirement of $11.00 in 2020, but seasonal employers and employers with less than six employees are subject to a minimum wage rate of $10.30.
- The owner, the employees, and the buying public are all one and the same, and unless an industry can so manage itself as to keep wages high and prices low it destroys itself, for otherwise it limits the number of its customers.
- There is no separate rate for tipped employees, so they must be paid the same.
While the federal minimum wage rate of $7.25 has not changed since 2009, there were many 2020 state minimum wage increases across several states. In fact, 24 states (and Washington D.C.) upped their rates (or will up their rates) this year, according to the Economic Policy Institute and the U.S. Most of these changes took place at the beginning of the year, but some of them are taking place July 1 and later.
Analysis of Minimum Wages by State
In 2016, both New York and Oregon passed laws increasing state minimum wages. Both states divided counties between three different categories and gave them each a different minimum wage rate. With increases in 2020, 11 (44%) of the increases took place due to citizen initiatives approved by voters.
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These provisions are enforced by the Equal Employment Opportunity Commission (EEOC). Over the last several decades, the US has become more geographically economically divided. Large cities, especially in big coastal states, have seen dramatic economic growth powered by industries like technology and finance, while regions with big manufacturing sectors have stagnated in comparison. As wages at the bottom rise in some states rather than others, geographic gaps like that could get larger. This site is a free public https://rot-systems.com/2022/11/24/managing-unearned-fees-in-financial-statements-and/ service not affiliated with the Department of Labor or any governmental organization. If a mandatory law change occurs, we immediately ship an updated poster to your workplace.
GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology. Employers covered by the FLSA must pay the federal MW of $7.25. Tip credit is not permitted unless the employer obtains from each employee, either monthly or each pay period, a signed certification of the amount of tips received.
Current Legal Analysis
The absence of federal legislative action constrained growth, resulting in softer national gains. Despite heightened political focus gross vs net on wages due to inflation and labor market tightness, no broad federal policy shift occurred. As the US dollar grew stronger in comparison to currencies from other countries elsewhere in the world, California and the District of Columbia now boast the highest minimum wages. In order to find the minimum wage the year you were born, GOBankingRates looked at the United States Department of Labor’s federal minimum wage data to find the minimum wage for every year from 1938 to 2024.
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The federally mandated minimum wage in the United States is 7.25 U.S. dollars per hour, although the minimum wage varies from state to state. As of January 1, 2025, the District of Columbia had the highest minimum wage in the U.S., at 17.5 U.S. dollars per hour. This was followed by Washington, which had 16.66 U.S. dollars per hour as the state minimum wage.
Effective December 31, 2019
The following states have passed legislation to reach a $15 minimum wage in 2025 and beyond. In us minimum wage 2020 2026, the national average minimum wage is projected to rise 0.6% to $9.29, underpinned by mul… If you are a federal employee who has been recently separated from your employment, NYSDOL is here to help.