Download our 2025 payroll calendar to stay on top of pay periods, deadlines, HR compliance dates and fun holidays. The system remains up to date as laws change, and it also undergoes regular audits, ensuring you remain compliant and avoid unnecessary penalties. The minimum wage in the state of California is currently $16.50, $9.25 higher than the federal minimum. See the returns you’ll get from an automated and more efficient hourly workforce. Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals.
Published January 10, 2025 •
High food and housing costs were issues top of mind for voters in the 2024 election. Benefits such as educational assistance, life insurance, or travel accident insurance are generally a matter of agreement between an employer and an employee (or the employee’s representative). Interactive tools https://www.bookstime.com/articles/payment-recovery and videos bringing clarity to the national dialogue on economic inequality. Exploring how race, ethnicity, and class intersect to affect economic outcomes in the United States.
Employee Management
Some localities have what are retained earnings different wage tiers depending on the size of the company. Cities and counties have been slowly raising their minimum wages as well — sometimes considerably higher than their state’s. The Economic Policy Institute has been documenting some of the more local wage floors. But the minimum-wage level may still be too low to keep up with rising prices and home costs, according to EPI. That’s especially the case if a locality’s minimum wage was tied to inflation years ago and has not been reexamined since.
- The Department of Labor’s Wage and Hour Division administers and enforces the federal minimum wage law.
- Interactive tools and videos bringing clarity to the national dialogue on economic inequality.
- For example, the current rate was enacted in 2009 — almost 15 years ago.
- Employers covered by the FLSA but who are not subject to the Puerto Rico Minimum Wage Act must pay at least the federal minimum wage of $7.25 per hour.
- These timesheets can then be exported directly into your payroll system for processing.
- Florida has paid its minimum wage workers more than the federal minimum ever since.
Laws on this Topic
Workforce’s labor compliance software allows you to pay your staff in accordance with federal, state, and regional wage laws. This includes exemptions and special situations, including tipped employees. At a local level, New York City, Long Island, and Westchester Country enjoy a minimum wage of $16.50 per hour across the board.
- Other localities around the country are getting close to that $20 mark.
- Exploring how race, ethnicity, and class intersect to affect economic outcomes in the United States.
- If the state minimum wage is more than the federal, employers must pay the state rate.
- Minimum wages can change periodically, depending on various state and federal laws.
- By October 1, 2026, the minimum wage will be tied to yearly inflation.
- The average full-time minimum-wage worker in these states will make around $420 more annually, according to EPI.
The minimum wage is adjusted annually on July 1 based on a set formula. The minimum wage will be adjusted annually based upon a set formula. State Minimum Wage LawsA clickable map that tells you what the minimum wage laws are in each state.
- When the state rate is lower than the federal rate, the federal minimum wage of $7.25 supersedes state law for most types of employees.
- Employers of tipped employees must pay their employees minimum wage, but they can count the tips the employees receive toward it up to the maximum of $3.02, the allowable Fair Labor Standards Act tip credit of 2003.
- A network of state and local organizations improving workers’ lives through research and advocacy.
- In the table below, only the lowest minimum wage is cited, or the highest-level subdivision where it applies.
- Workforce.com offers HR and payroll software that give you the resources you need to calculate pay and remain up to date in the ever-changing minimum wage landscape.
Congressional Budget Office’s estimates of federal minimum wage increases
This is also part of a gradual increase of $1 per year that will lead to a $15 minimum wage rate in September 2026. States with higher minimum wage rates include Washington at $16.66 and the District of Columbia at $17.50. Cities with minimum wage rates higher than those of their states include New York City ($16.50 — $1 more than in New York State) and Portland, Maine ($15.50, $0.85 higher than the state). Employers with minimum wage (and tipped minimum wage) workers should discuss newly implemented increases with counsel to ensure their compensation practices comply across all relevant jurisdictions. The minimum wage increased to $14.00 on July 1, 2022, and $15.00 on June 1, 2023. Employers using a voluntary flexible work hour plan approved by the Alaska Department of Labor, who schedule employees for a 10-hour day, 40-hour workweek may be eligible for premium pay after 10 hours a day instead of after 8 hours.
- Additionally, some local governments set minimum wage rates higher than their respective state minimum wage.
- In cases like these, the law favors the rate most beneficial to the employee — in other words, the highest minimum wage.
- Then, GOBankingRates used the Bureau of Labor Statistics’ CPI inflation calculator to find the federal minimum wage in 2024 dollars for all years.
- Any legal analysis, legislative updates, or other content and links should not be construed as legal or professional advice or a substitute for such advice.
- Many states exclude very small businesses, such as those with fewer than five employees or those with gross annual revenue below a specified threshold.
Here’s how minimum wage and paid sick leave measures fared in the election
Fourteen states pay the federal minimum rate of $7.25, as all states must do at a minimum for jobs covered by the federal Fair Labor Standards Act. Some have higher rates for businesses that meet certain conditions. minimum wage around the us The federal minimum wage is $7.25 per hour for workers covered by the FLSA.