State Minimum Wage vs. Federal Minimum Wage

1. What is the difference between state minimum wage and federal minimum wage?


State minimum wage is the minimum hourly wage that is set by individual states and applies to all employees within that state. Federal minimum wage, on the other hand, is the minimum hourly wage set by the federal government and applies to all employees across the country.

2. How does a state determine its minimum wage?

Each state has its own process for determining its minimum wage. Some states require legislation to be passed, while others have a commission or board that reviews economic data and makes recommendations for changes to the minimum wage. Some states also have provisions for automatic increases based on the cost of living.

3. Can a state have a lower minimum wage than the federal minimum wage?

No, a state cannot have a lower minimum wage than the federal minimum wage. If a state’s minimum wage is lower than the federal rate, employers must pay their employees at least the federal rate.

4. Are there any states with higher minimum wages than the federal rate?

Yes, there are currently 29 states and Washington D.C. that have higher minimum wages than the federal rate of $7.25 per hour. These state rates range from $8.65 (in Oregon) to $15 (in Washington D.C.).

5. Can employers pay tipped employees less than the state or federal minimum wage?

In most cases, employers can pay tipped employees less than the standard minimum wage as long as they make up the difference between tips received and their regular hourly rate. However, some states have different rules regarding tipped employees and may require employers to pay them at least the full state or federal minimum wage.

6. Do small businesses have to comply with state or federal minimum wage laws?

Yes, small businesses must comply with both state and federal laws regarding minimum wages if they meet certain criteria such as having employees who are covered under these laws (e.g., not exempt). Small businesses may also be subject to additional local or city-specific laws regarding minimum wage.

7. Can states change their minimum wage to be higher or lower than the federal rate?

Yes, states have the power to set their own minimum wage rates, which can be higher or lower than the federal rate. However, if a state’s minimum wage is lower than the federal rate, employers must pay their employees at least the federal rate.

8. Is there a difference between minimum wage for different types of workers (e.g., minors, agricultural workers)?

Some states may have different minimum wage rates for certain categories of workers, such as minors under 18 years old or agricultural workers. Additionally, some professions may be exempt from state or federal minimum wage laws entirely depending on factors such as job duties and salary. It is important to check your state’s specific laws for any exemptions or special rates that may apply.

2. Does every state have its own minimum wage?


Yes, every state in the United States has its own minimum wage laws, which dictate the minimum hourly wage that employers are legally required to pay workers. Some states have higher minimum wages than the federal minimum wage of $7.25 per hour, while others may have lower or no minimum wage laws at all.

3. How does the federal government determine the minimum wage?


The federal government determines the minimum wage through legislation, specifically the Fair Labor Standards Act (FLSA). The FLSA is a federal law that sets labor standards, including minimum wage, for employees in the private sector and in Federal, State, and local governments. The current federal minimum wage is set at $7.25 per hour and has not been adjusted since 2009.

Under the FLSA, any changes to the minimum wage must be made through an act of Congress. This means that both houses of Congress must pass a bill to change the minimum wage, and then the President must sign it into law. However, states and localities are allowed to set their own minimum wages as long as they are higher than the federal rate.

The process for determining a potential increase in the federal minimum wage typically involves debates within Congress and input from various stakeholders such as businesses and labor groups. The Department of Labor also conducts research on wages and cost of living to inform policymakers.

In recent years, there have been discussions about raising the federal minimum wage to $15 per hour. However, no legislation has been passed at this time to make this change.

4. Do all states have to follow the federal minimum wage?


Yes, all states must adhere to the federal minimum wage of $7.25 per hour. However, states can choose to set their own higher minimum wage rate if they wish. In cases where state and federal minimum wages differ, the higher rate applies.

5. Can states set a higher minimum wage than the federal standard?

Yes, states can set a higher minimum wage than the federal standard. Currently, 29 states and the District of Columbia have minimum wages that are higher than the federal minimum wage of $7.25 per hour. Some states also have scheduled increases to their minimum wage that will gradually raise it above the federal level. However, if there is a conflict between state and federal minimum wage laws, the law that provides for the higher wage would apply.

6. Is the state or federal minimum wage higher?


The federal minimum wage is currently higher than the state minimum wage in all 50 states. As of 2021, the federal minimum wage is $7.25 per hour, while some states have a lower minimum wage and others have a higher minimum wage. However, many states and cities have implemented their own higher minimum wage laws that exceed the federal rate. It is important to check the specific minimum wage laws in your state or city for accurate information.

7. Are there any exemptions or exclusions to the minimum wage laws at the state or federal level?


It depends on the state or federal laws in question. Generally, there are exemptions for certain industries, such as tipped employees or interns, as well as exemptions for small businesses and seasonal workers. There may also be different minimum wage rates for certain types of workers, such as minors or farm workers. It is important to consult the specific laws in your state or at the federal level to determine any exemptions or exclusions that may apply.

8. Can employers pay employees different wages depending on their location within a state with varying local minimum wages?


Yes, in most states, employers can pay different wages to employees depending on their location within the state. This is because local minimum wage laws may vary from city to city or county to county, allowing for differing minimum wage rates within the same state. Additionally, some states have laws that allow for different minimum wages based on the size of the employer or industry. Employers must comply with both federal and state minimum wage laws and are required to pay their employees the highest applicable rate, whether it is the federal, state, or local minimum wage.

9. What happens when there is a discrepancy between state and federal minimum wages?


When there is a discrepancy between state and federal minimum wages, the higher minimum wage must be paid to employees. This means that employers must pay their employees at least the higher of the two minimum wage amounts – either the state or federal minimum wage – whichever is greater. For example, if a state has a minimum wage of $10 per hour and the federal minimum wage is $7.25 per hour, employers in that state must pay their employees at least $10 per hour. On the other hand, if a state has a lower minimum wage than the federal rate, employers in that state must still pay their employees at least the federal minimum wage of $7.25 per hour. States are allowed to set their own minimum wage rates as long as they are equal to or higher than the federal rate.

10. How often do states update their minimum wages?


The frequency at which states update their minimum wages can vary. Some states may update their minimum wage annually, while others may do so less frequently. Some states may also have laws or policies in place that automatically adjust the minimum wage based on inflation or other economic factors.

11. Do all states have automatic annual increases for their minimum wage?


No, not all states have automatic annual increases for their minimum wage. As of 2021, only 20 states and the District of Columbia have laws that provide for automatic annual increases to the minimum wage based on factors such as inflation or cost of living. In other states, any changes to the minimum wage must be approved by legislation. However, some states may still adjust their minimum wage rates periodically based on economic conditions or through voter-approved ballot initiatives.

12. Are there any states that do not have a minimum wage law at all?


Yes, there are five states that do not have a minimum wage law at all: Alabama, Louisiana, Mississippi, South Carolina, and Tennessee. However, employers in these states must still comply with the federal minimum wage of $7.25 per hour.

13. Why do some states choose to have a higher minimum wage than the federal standard?


States may choose to have a higher minimum wage than the federal standard for a variety of reasons, including:

1. To keep up with the cost of living: Many states have a higher cost of living than the national average, and therefore need a higher minimum wage to ensure workers can afford basic necessities.

2. To attract workers: A higher minimum wage can make a state more attractive to potential employees, especially those in low-wage industries.

3. Political ideology: Some states may have different political ideologies than the federal government and believe in setting their own minimum wage standards.

4. Economic conditions: Some states may be experiencing stronger economic growth or have lower unemployment rates, which could support a higher minimum wage.

5. Public pressure: Labor unions and advocacy groups often push for higher minimum wages, and state governments may respond to public pressure by increasing their minimum wage.

6. Legal requirements: Some states have laws that require their minimum wage to be set at or above the federal standard.

7. Local circumstances: State economies can vary greatly, and some states may need a higher minimum wage in order to address specific local issues such as high poverty rates or income inequality.

8. Challenging federal policy: In some cases, state governments may oppose or disagree with policies set at the federal level, such as maintaining a low federal minimum wage, and choose to enact their own policies in response.

14. Are tipped employees subject to both state and federal minimum wage laws?


Yes, tipped employees are subject to both state and federal minimum wage laws. According to the Fair Labor Standards Act (FLSA), employers must pay tipped employees a cash minimum wage of at least $2.13 per hour, as long as the total of their tips plus this cash amount equals at least the federal minimum wage of $7.25 per hour. However, some states have their own higher minimum wage rates for tipped employees, so employers must comply with whichever rate is higher. If an employee’s tips do not bring their earnings up to the minimum wage, the employer must make up the difference.

15. What are some arguments for and against raising the federal or state minimum wage?


Some arguments for raising the minimum wage include:

1. Economic stimulus: Increasing the minimum wage puts more money into the hands of low-wage workers who are more likely to spend it, boosting consumer spending and stimulating economic growth.

2. Reducing poverty: Raising the minimum wage can help lift people out of poverty and reduce income inequality.

3. Increased worker productivity: Paying workers a higher wage can motivate them to work harder and be more productive, leading to greater profitability for businesses.

4. Fairness and social justice: Many argue that it is unjust for hard-working individuals to earn wages that are not enough to support themselves or their families.

5. Improved public health: Higher wages can lead to improved heath outcomes as low-income individuals will have better access to healthcare and healthier food options.

6. Reduced reliance on government assistance: Higher wages could potentially reduce the number of working individuals relying on government assistance programs, ultimately reducing government spending.

Arguments against raising the minimum wage include:

1. Job loss: Some argue that raising the minimum wage could lead employers to cut jobs or reduce hiring in order to offset increased labor costs.

2. Inflation: Critics point out that increasing the minimum wage could cause prices of goods and services to increase, negating any potential benefits for workers.

3. Impact on small businesses: Small businesses may struggle with higher labor costs, potentially leading them to close or reduce operations.

4. Negative impact on low-skilled workers: Raising the minimum wage may make it more difficult for those with limited skills or education to find employment, as employers may favor hiring more skilled workers at a higher wage.

5. Cost of living differences across regions: A federal or state minimum wage may not accurately reflect the cost of living in different regions, leading to potential difficulties for small businesses in high-cost areas.

6. Increased automation: Some argue that raising the minimum wage could incentivize employers to automate jobs, ultimately leading to a loss of jobs for low-wage workers.

16. How do state and federal governments enforce compliance with these laws?


State and federal governments enforce compliance with disability rights laws through a variety of methods, including:

1. Civil Rights Investigations: The Justice Department’s Civil Rights Division and similar state agencies investigate complaints of discrimination based on disability and take legal action against violators if necessary.

2. Fines and Penalties: Violators of disability rights laws can face significant fines and penalties imposed by government agencies.

3. Compliance Reviews: Government agencies may periodically review the policies and practices of organizations to ensure they are in compliance with disability rights laws.

4. Complaint Resolution: Individuals can file complaints with government agencies, such as the Equal Employment Opportunity Commission or the Department of Housing and Urban Development, if they believe their rights have been violated.

5. Injunctions: Government agencies can seek court orders to prevent organizations from engaging in discriminatory practices.

6. Education and Outreach: Government agencies may conduct educational programs to inform individuals and organizations about their rights and responsibilities under disability rights laws.

7. Public Pressure: Disability advocacy groups often work to bring attention to violations of disability rights laws, which can lead to public pressure for change.

8. Criminal Prosecution: In extreme cases where a person’s civil rights have been violated, criminal charges may be brought against the violating individual or organization by law enforcement authorities.

17. Can an employee be paid different hourly rates depending on their job duties or skills, even if they are in a state with a higher minimum wage?


Yes, an employee can be paid different hourly rates depending on their job duties or skills even if they are in a state with a higher minimum wage. This is because the minimum wage is a set minimum amount that must be paid to employees, but it does not restrict employers from paying higher wages based on merit or job responsibilities. However, employers must adhere to all state and federal laws regarding minimum wage and cannot pay employees less than the established minimum wage for their location.

18. To whom can individuals report violations of minimum wage laws at the state and federal level?


Individuals can report violations of minimum wage laws to the Department of Labor’s Wage and Hour Division at the federal level, and to the state labor department in their respective state.

19. How does cost of living vary among different states, and how does this affect their respective minimum wages?


The cost of living can vary significantly among different states in the United States. Factors such as housing prices, transportation costs, food and utility expenses, and overall inflation rates can influence the cost of living in a particular state.

This variation in cost of living also has an impact on minimum wage laws. The federal minimum wage is set at $7.25 per hour, but many states have implemented their own higher minimum wages to account for the higher cost of living.

For example, states with high costs of living, such as California and New York, have minimum wages well above the federal level. In fact, as of 2020, California’s minimum wage is $13 per hour and New York’s is $11.80 per hour (with variations based on location).

On the other hand, states with lower costs of living may have lower minimum wages. For instance, Georgia’s minimum wage is currently set at $5.15 per hour (although most employers are required to pay the federal rate of $7.25).

In general, higher-cost states tend to have higher minimum wages to help workers afford basic necessities in those areas. However, there are exceptions to this trend and variations within each state based on industry and location.

20.Are there any pending bills or legislation that could potentially change either state or federal minimum wages in the future?


Yes, there are several pending bills and legislation that could potentially change minimum wages in both state and federal levels:

1. The Raise the Wage Act: This is a bill in the U.S. Congress that proposes to gradually increase the federal minimum wage incrementally from $7.25 per hour to $15 per hour by 2024.

2. The Fair Minimum Wage Act: This bill proposes to increase the federal minimum wage to $12 per hour by 2020 and then adjust it annually based on inflation.

3. State Minimum Wage Laws: Many states have their own minimum wage laws that are higher than the federal level. These laws are often reviewed and adjusted periodically.

4. Local Minimum Wage Laws: Some cities, such as Seattle, Minneapolis, and San Francisco, have implemented their own local minimum wage laws that are significantly higher than both state and federal levels.

5. Living Wage Laws: These laws aim to ensure that workers earn enough to cover their basic living expenses in a particular area, rather than just meeting the federal or state minimum wage standards.

6. Tipped Minimum Wage Laws: Several states have proposed or passed legislation to increase the tipped minimum wage or eliminate it altogether.

7. Cost of Living Adjustment (COLA) Laws: These laws automatically adjust the minimum wage based on changes in the cost of living, typically tied to inflation rates.

It is important for individuals and businesses to stay informed about these potential changes in order to comply with current and future minimum wage laws.