2020 Federal and State Minimum Wage Rates
The minimum wage rate is the lowest hourly pay that can be awarded to workers, also known as a pay floor. The Fair Labor Standards Act (FLSA) determines the minimum wage for employees in private and public sectors, in both Federal and State governments. Under the FLSA, non-exempt employees must be paid the minimum wage or higher.
Federal Minimum Wage
The federal minimum wage in 2020 is $7.25 per hour and has not increased since July 2009. However, some states, cities, and counties have a higher minimum wage rate. When the state, city or county minimum wage rate is higher than the federal rate, employers are required to pay workers the higher amount.
Minimum Wage for Federal Contract Workers
The Department of Labor published a notice in the Federal Register to announce that, beginning January 1, 2020, the Executive Order 13658 minimum wage rate, which generally must be paid to workers performing work on or in connection with covered federal contracts, will be increased to $10.80 per hour.
Additionally, beginning January 1, 2020, tipped employees performing work on or in connection with covered federal contracts generally must be paid a minimum cash wage of $7.55 per hour.
Exemptions from Minimum Wage
Some employees are exempt from federal minimum wage requirements, such as those who are not protected by the Fair Labor Standards Act. Tipped employees such as restaurant servers, for example, can be paid at a lower rate than minimum wage.
State Minimum Wage Rates
Data from the Economic Policy Institute indicates that 29 states and D.C. have a minimum wage higher than the federal minimum wage including Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, Ohio, Oregon, Rhode Island, South Dakota, Vermont, Washington, Washington D.C., and West Virginia.
Minimum Wage Rates for 2020 Listed by State
The minimum wage across the country varies from the federally mandated minimum of $7.25 per hour in many states to as high $12.00 and $13.50 per hour in states Arizona, Colorado, California, and Washington.
- Alabama: $7.25 (federal minimum wage, no state minimum)
- Alaska: $10.19
- Arizona: $12.00
- Arkansas: $10.00
- California: $13.00 (employers with 25 or fewer employees, have one year to comply)
- Colorado: $12.00
- Connecticut: $11.00 ($12.00 September 2020)
- Delaware: $9.25
- District of Columbia: $14.00 (15.00 July 2020)
- Florida: $8.56
- Georgia: $7.25 ($5.15 if not covered by federal regulations)
- Guam: $8.75 (March 2020)
- Hawaii: $10.10
- Idaho: $7.25
- Illinois: $9.25 ($10.00 July 2020)
- Indiana: $7.25
- Iowa: $7.25
- Kansas: $7.25
- Kentucky: $7.25
- Louisiana: $7.25
- Maine: $12.00
- Maryland: $11.00
- Massachusetts: $12.75
- Michigan: $9.65
- Minnesota: $10.00, ($8.15 small employers with less than 500k in annual sales)
- Mississippi: $7.25 (federal minimum wage, no state minimum)
- Missouri: $9.45
- Montana: $8.65 ($4.00 for businesses with gross annual sales of $110,000 or less)
- Nebraska: $9.00
- Nevada: $8.25/$7.25 ($9.00/$8.00 July 2020)
- New Hampshire: $7.25
- New Jersey: $11.00
- New Mexico: $9.00
- New York: $11.80 ($12.50 December 2020)
- North Carolina: $7.25
- North Dakota: $7.25
- Ohio: $8.70/$7.25
- Oklahoma: $7.25
- Oregon: $11.25 ($12.00 July 2020)
- Pennsylvania: $7.25
- Puerto Rico: $6.55 ($7.25 Employers covered by the Federal Fair Labor Standards Act (FLSA))
- Rhode Island: $10.50
- South Carolina: $7.25
- South Dakota: $9.30
- Tennessee: $7.25
- Texas: $7.25
- Utah: $7.25
- Vermont: $10.96
- U.S. Virgin Islands: $10.50
- Virginia: $7.25
- Washington: $13.50
- West Virginia: $8.75
- Wisconsin: $7.25
- Wyoming: $7.25
Some city/county/state government employers and companies have higher minimum wage rates than the state minimum. In some states, a separate minimum wage has been set for small employers, and there may be other exceptions to the standard rate.
Cities and Counties with Higher Minimum Wages
There are 44 localities that have adopted minimum wages above their state minimum wage:
- Alameda, California
- Albuquerque, New Mexico
- Belmont, California
- Berkeley, California
- Bernalillo County, New Mexico
- Birmingham, Alabama
- Chicago, Illinois
- Cook County, Illinois
- Cupertino, California
- Denver, Colorado
- El Cerrito, California
- Emeryville, California
- Flagstaff, Arizona
- Fremont, California
- Las Cruces, New Mexico
- Los Altos, California
- Los Angeles County, California
- Los Angeles, California
- Malibu, California
- Milpitas, California
- Minneapolis, Minnesota
- Montgomery County, Maryland
- Mountain View, California
- Nassau, Suffolk, and Westchester Counties, New York
- New York City, New York
- Oakland, California
- Palo Alto, California
- Pasadena, California
- Portland Urban Growth Boundary, Oregon
- Prince George’s County, Maryland
- Redwood City, California
- Richmond, California
- San Francisco, California
- San Jose, California
- San Leandro, California
- San Mateo, California
- Santa Clara, California
- Santa Fe City, New Mexico
- Santa Fe County, New Mexico
- Santa Monica, California
- SeaTac, Washington
- Seattle, Washington
- St. Paul, Minnesota
- Sunnyvale, California
Companies With Higher Minimum Wages
Some companies have decided to set a minimum wage for their employees that is at a higher level than the federal and state rates.
- Target: $13
- Bank of America: $17
- JP Morgan Chase: $15–$18 (based on location)
- Huntington National Bank: $16
- Facebook: $15–$20 (based on location)
- Wells Fargo: $15
- Amazon: $15
- Costco: $15.50
- Charter Communications/Spectrum: $15
- Ben & Jerry's: $16.92
Minimum wage rates may change during the calendar year. Check with your state department of labor for rates and wages specific to your location.
The information contained in this article is not legal advice and is not a substitute for such advice. State and federal laws change frequently, and the information in this article may not reflect your own state’s laws or the most recent changes to the law.
U.S. Department of Labor. "Wages and the Fair Labor Standards Act." Accessed Jan. 12, 2020.
U.S. Department of Labor. "Minimum Wage." Accessed Jan. 12, 2020.
National Archives. Federal Register. "Establishing a Minimum Wage for Contractors, Notice of Rate Change in Effect as of January 1, 2020," Accessed Jan. 12, 2020.
U.S. Department of Labor. Fair Labor Standards Act Advisor. "Exemptions." Accessed Jan. 12, 2020.
The Economic Policy Institute. "Minimum Wage Tracker." Accessed Jan. 12, 2020.
Labor Law Center. "State & Federal Minimum Wage Rates," Accessed Jan. 12, 2020.
Glassdoor. "Companies Raising the Minimum Wage." Accessed Jan. 19, 2020.