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Minimum Wage Guide

Staying Informed with CAVU HCM: Navigating Federal and State Minimum Wage Laws

 The information provided on this page was accurate as of its publication we advise readers to consult with legal or professional advisors for the most up-to-date information and personalized guidance, as laws and regulations can change rapidly.

Federal Minimum Wage

The current federal minimum wage stands at $7.25 per hour.
This rate applies universally unless specific exemptions are in place.

In contrast, federal contractors engaged in services governed by the Service Contract Act, or those providing concessions and services related to federal properties or lands, are subject to a different minimum wage, which is $10.35 per hour.

The applicability of the federal minimum wage is primarily determined by the Fair Labor Standards Act (FLSA). Organizations and employees not covered by the FLSA are not obligated to adhere to the federal minimum wage.

However, in instances where state or local jurisdictions have established a higher minimum wage, employers are required to pay the higher rate, irrespective of FLSA coverage. 

State Minimum Wage Maximum Tip Credit  Minimum Cash Wage:
Tipped Employees
       
Alaska   $10.85  Tip credit not allowed  Tip credit not allowed
Arizona $13.85
Flagstaff: $16.80
Tucson: $13.85,
  • $14.25 (effective 1/1/24)
  • $15.00 (effective 1/1/25)
$3.00
Flagstaff: $2.00
  •  $10.85
     Flagstaff $14.80
     Tucson $10.85
    $11.25 (effective 1/1/24)
    $12.00 (effective 1/1/25)
California

$15.50

Oakland: $15.97
San Diego: $16.30
San Jose: $17.00
West Hollywood:

  • Employers with 50 or more employees: $17.50
  • Employers with 49 or fewer employees: $17.00

Hotel Employers: $18.86

Tip credit not allowed Tip credit not allowed
Colorado

$13.65
Denver: $17.29

$3.02

$10.63
Denver: $14.27

Connecticut $15.00 $8.62
Bartenders: $6.77
$6.38
Bartenders: $8.23
Delaware

$11.75
$13.25 (effective 1/1/24)
$15.00 (1/1/2025)

$9.52
$11.02 (effective 1/1/24)
$12.77 (effective 1/1/25)
$2.23
District of Columbia $17.00 $10.10 *Tip credit will decrease incrementally and phase out by 2027. $8.00

$10.00 (1/1/24)
$12.00 (1/1/25)
$14.00 (1/1/26)

Equal to minimum wage for non-tipped workers (effective 7/1/27)

Florida $12.00
$13.00 (effective 9/30/24)
$14.00 (effective 9/30/25)
$15.00 (effective 9/30/26)
$3.02 $8.98
$9.98 (effective 9/3024)
$10.98 (effective 9/30/25)
$11.98 (effective 9/30/26)
Hawaii $12.00
$14.00 (effective 1/1/24)
$16.00 (effective 1/1/26)
$18.00 (effective 1/1/28)
$1.00
$1.25 (effective 1/1/24)
$1.50 (effective 1/1/28)
$11.00
$12.75 (effective 1/1/24)
$16.50 (effective 1/1/28)
Illinois

$13.00
$14.00 (effective 1/1/24)
$15.00 (effective 1/1/25)

Chicago:

  • Employers with 21 or more employees: $15.40
  • Employers with 4-20 employees: $15.00

Cook County: $13.35

$5.20
$5.60 (effective 1/1/24)
$6.00 (effective 1/1/25)

Chicago:

  • Employers with 21 or more employees: $6.16
  • Employers with 4-20 employees: $6.00

Cook County: $5.55

$7.80
$8.40 (effective 1/1/24)
$9.00 (effective 1/1/25)

Chicago:

  • Employers with 21 or more employees: $9.24
  • Employers with 4-20 employees: $9.00

Cook County: state rate

Maine

$13.80
Portland: $14.00
$15.00 (effective 1/1/24)

$6.90
Portland: $7.00
$7.50 (effective 1/1/24)

$6.90
Portland: $7.00
$7.50 (effective 1/1/24)

Maryland

Employers with 15 or more employees: $13.25
$14.00 (effective 1/1/24)
$15.00 (effective 1/1/25)

“Small Employers” with 14 or fewer employees: $12.80
$13.40 (effective 1/1/24)
$14.00 (effective 1/1/25)
$14.60 (effective 1/1/26)
$15.00 (effective 7/1/26)

Montgomery County:
  • Employers with 51 or more employees: $15.65
  • Employers with 11–50 employees: $15.00 
  • Employers with 10 or fewer employees: $14.50 
    $15.00 (effective 7/1/24)

Employers with 15 or more employees: $10.37 
$11.37 (effective 1/1/25)

“Small Employers” with 14 or fewer employees: $9.17
$9.77 (effective 1/1/24)
$10.37 (effective 1/1/25)
$10.97 (effective 1/1/26)
$11.37 (effective 7/1/26)

Montgomery County:

  • Employers with 51 or more employees:
$11.65

  • Employers with 11–50 employees: $11.00
  • Employers with 10 or fewer employees: $10.50
    $11.00 (effective 7/1/24)

$3.63


Montgomery County: $4.00

Massachusetts $15.00 $8.25 $6.75
Michigan $10.10 $6.26 $3.84
Minnesota

Large Employers (annual gross revenues of $500,000 or more): $10.59

Small Employers (annual gross revenues of less than $500,000): $8.63

Minneapolis:

  • Large Employers (more than 100 total employees): $15.19
  • Small Employers (100 or fewer total employees): $14.50 
    $15.19 (effective 7/1/24)*
    *Will increase to account for inflation every subsequent January 1.
St. Paul:
  • Macro Businesses (10,001 or more total employees): $15.19
  • Large Businesses (101–10,000 total employees):
    $15.00
  • Small Businesses (6–100 total employees): $13.00 
    $14.00 (effective 7/1/24)
    $15.00 (effective 7/1/25)
  • Micro Businesses (5 or fewer employees): $11.50 
    $12.25 (effective 7/1/24)
    $13.25 (effective 7/1/25)
    $14.25 (effective 7/1/26)
    $15.00 (effective 7/1/27)
Tip credit not allowed Tip credit not allowed
Missouri $12.00 $6.00 $6.00
Montana $9.95 Tip credit not allowed Tip credit not allowed
Nebraska

$10.50
$12.00 (effective 1/1/24)
$13.50 (effective 1/1/25)
$15.00 (effective 1/1/26)

$8.37
$9.87 (effective 1/1/24)
$11.37 (effective 1/1/25)
$12.87 (effective 1/1/26)
$2.13
Nevada

Employers offering qualified health insurance benefits: $10.25
$12.00 (effective 7/1/24)

Employers that do not offer qualified health insurance benefits: $11.25
$12.00 (effective 7/1/24)

Tip credit not allowed Tip credit not allowed
New Jersey

Employers with 6 or more employees: $14.13 
$15.13 (effective 1/1/24)

Employers with 5 or fewer employees and seasonal employers: $12.93
$13.73 (effective 1/1/24)
$14.53 (effective 1/1/25)
$15.23 (effective 1/1/26)

Employers with 6 or more employees: $8.87
$9.87 (effective 1/1/24)

Employers with 5 or fewer employees and seasonal employers: $7.57
$8.37 (effective 1/1/24)

$5.26
New Mexico $12.00
Albuquerque: $12.00
Santa Fe: $12.95
$9.00
Albuquerque: $4.80
Santa Fe: $9.95
$3.00
Albuquerque: $7.20
Santa Fe: $3.00
New York $14.20 Tipped service employees: $2.35
Tipped food service workers: $4.75
Tipped service employees: $11.85
Tipped food service workers: $9.45
Ohio $10.10
Small Employers (annual gross receipts of less than $371,000 per year): $7.25
$5.05 $5.05
Rhode Island $13.00
$14.00 (effective 1/1/24)
$15.00 (effective 1/1/25)
$9.11
$10.11 (effective 1/1/24)
$11.11 (effective 1/1/25)
$3.89
South Dakota $10.80 $5.40 $5.40
Vermont $13.18 $6.59 $6.59
Virginia $12.00
$13.50 (effective 1/1/25)*
$15.00 (effective 1/1/26)*
*
If reenacted by General Assembly before July 1, 2024.
$9.87 $2.13
Washington $15.74

Seattle:
  • Large Employers (more than 500 employees worldwide): $18.69
  • Small Employers (500 or fewer employees worldwide) who do not contribute at least $1.52 per hour toward an individual employee’s medical benefits or in tips: $18.69
  • Small Employers (500 or fewer employees worldwide) who do pay at least $1.52 per hour toward an individual employee’s medical benefits or in tips:$16.50
Tip credit not allowed Tip credit not allowed


Disclaimer: The information provided on this page was accurate as of its publication in November 2023. At CAVU HCM, we are committed to ensuring that our content is current and reliable. To this end, we routinely update our resources to reflect the latest developments in federal and state minimum wage laws. However, we advise readers to consult with legal or professional advisors for the most up-to-date information and personalized guidance, as laws and regulations can change rapidly.

More Minimum Wage Information

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Minimum Wage for Tipped Employees by State

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CAVU HCM

CAVU HCM is a national boutique payroll and HR technology and services firm. C-A-V-U, the acronym, stands for Ceiling and Visibility Unlimited, a phrase often used to describe desirable flying conditions. This also clearly describes our mission; Eliminate barriers, boundaries and limits for our valued clients and their workforces by providing best-in-class technology and a unique personal experience online and offline. We are a great fit for companies wanting to do business with people.