State Minimum Wage Vs. Federal Minimum Wage


The federal government periodically sets a federal minimum wage rate. Several, but not all, states also have minimum wage laws and the state rates correlate variously with the federal rate.

Federal Minimum Wage

According to the U.S. Department of Labor's Wage and Hour Division, the federal minimum wage rate of $7.25 an hour for hourly (nonexempt) employees went into effect on July 24, 2009.

State Rates

As of January 2010, 45 states also have a minimum rate. States with minimum wage rates can have rates higher, lower, or the same as the federal rate.

States with Equal Rate

States with minimum wage rates equal to the federal rate represent the largest number of states with a state minimum rate.

States with Higher Rates

States with higher rates represents the next largest number of states with their own minimum wage rates.

States with Lower Rates

Only seven states with state minimum wage rates have state rates lower than the federal minimum wage.

Federal vs. State

Where both a state and a federal minimum wage law apply and the rates differ, the employee is subject to the higher of the two rates, according to the U.S. Department of Labor.

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