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Minimum Wage

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Question
What is Minimum Wage?

Answer

The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA). The federal minimum wage is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. Some state laws provide greater employee protections; employers must comply with both.

Tip Credit: FLSA permits an employer to take a tip credit toward its minimum wage obligation for tipped employees equal to the difference between the required cash wage (which must be at least $2.13) and the federal minimum wage. Thus, the maximum tip credit that an employer can currently claim under the FLSA is $5.12 per hour (the minimum wage of $7.25 minus the minimum required cash wage of $2.13).

State Minimum Wages

State Minimum Wage Tipped Minimum Wage
Federal 7.25 2.13
Alabama None None
Alaska 8.75 8.75
Arizona 8.05 5.05
Arkansas 7.50  2.63
California 9.00 9.00 
Colorado 8.23 5.21
Connecticut 9.15 5.78 Hotel, Restaurant
7.46 Bartenders who receive tips
Delaware 7.75 2.23
District of Columbia 9.5 2.77
Florida 8.05 5.03
Georgia 5.15 None
Hawaii 7.75 7.25
Idaho 7.25 3.35
Illinois 8.25 4.95
Indiana 7.25 2.13
Iowa 7.25 3.35
Kansas 7.25 2.13
Kentucky 7.25 2.13
Louisiana None None
Maine 7.50 3.75
Maryland 8.50 3.63
Massachusetts 9.00 3.00
Michigan 8.15 3.10
Minnesota 8.00 8.00 If gross sales >$500,000
6.50 If gross sales <$500,000
Mississippi None None
Missouri 7.65 3.825
Montana 8.05 8.05 If gross sales >110,000
4.00 If gross sales <110,000
Nebraska 8.00 2.13
Nevada 8.25 8.25 If no health benefits provided
7.25 If health benefits provided
New Hampshire 7.25 45%
New Jersey 8.38 2.13
New Mexico 7.50 2.13
New York 8.75 5.00 Food service worker
5.65 Service employees
4.90 Resort Hotel service employees
North Carolina 7.25 2.13
North Dakota 7.25 4.86
Ohio 8.10 4.05 If gross recipts of >297,000
7.25 If gross recipts of <297,000
Oklahoma 7.25 3.625
Oregon 9.25 9.25
Pennsylvania 7.25 2.83
Rhode Island 9.00 2.89
South Carolina None None
South Dakota 8.50 4.25
Tennessee None None
Texas 7.25 2.13
Utah 7.25 2.13
Vermont 9.15 4.575
Virginia 7.25 2.13
Washington 9.47 9.47
West Virginia 8.00 2.40
Wisconsin 7.25 2.33
Wyoming 5.15 2.13

Refer to the state's specific Department of Labor office for more specific information on when and how the tip credit can be taken and the lower minimum wage offered.

Minimum Wage by State
Minimum Wage for Tipped Employees by State

 

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Article Details
Views: 794 Created on: Apr 24, 2015
Date updated: Sep 25, 2015
Posted in: Resource
Tagged: Minimum Wage


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