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.
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,
|
$3.00 Flagstaff: $2.00 |
|
California |
$15.50 Oakland: $15.97
Hotel Employers: $18.86 |
Tip credit not allowed | Tip credit not allowed |
Colorado |
$13.65 |
$3.02 |
$10.63 |
Connecticut | $15.00 | $8.62 Bartenders: $6.77 |
$6.38 Bartenders: $8.23 |
Delaware |
$11.75 |
$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) 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 Chicago:
Cook County: $13.35 |
$5.20 Chicago:
Cook County: $5.55 |
$7.80 Chicago:
Cook County: state rate |
Maine |
$13.80 |
$6.90 |
$6.90 |
Maryland |
Employers with 15 or more employees: $13.25 “Small Employers” with 14 or fewer employees: $12.80
|
Employers with 15 or more employees: $10.37 “Small Employers” with 14 or fewer employees: $9.17
|
$3.63
|
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:
|
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 |
$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 Employers that do not offer qualified health insurance benefits: $11.25 |
Tip credit not allowed | Tip credit not allowed |
New Jersey |
Employers with 6 or more employees: $14.13 Employers with 5 or fewer employees and seasonal employers: $12.93 |
Employers with 6 or more employees: $8.87 Employers with 5 or fewer employees and seasonal employers: $7.57 |
$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:
|
Tip credit not allowed | Tip credit not allowed |
A tipped employee is someone who consistently earns $30 or more per month in tips. State standards for such employees vary greatly by state. Let’s explore states that fall below or above the $30 per month federal standard for tipped employees' minimum base wage thresholds.
In this article, we'll explain employee classifications for employers, including the difference between hourly and salaried employees, overtime regulations, and the pros and cons of different employee categories.
FLSA requires employers to keep accurate records of employee hours and wages earned for 3 years. Employers must ensure accuracy of timekeeping methods used, including timesheets, time cards, or time and attendance system.
With CAVU eliminate errors, and improve the employee experience. Pay your employees accurately and on time. Get fast, knowledgeable help.
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