2021 Federal and State Minimum Wage Rates

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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

Effective January 1, 2021, the Executive Order 13658 minimum wage rate, which generally must be paid to workers performing work on or in connection with covered federal contracts, is $10.95 per hour.

Additionally, effective January 1, 2021, tipped employees performing work on or in connection with covered federal contracts generally must be paid a minimum cash wage of $7.65 per hour.

Effective January 30, 2022, federal agencies will need to incorporate a $15 minimum wage in new contract solicitations, and by March 30, 2022, all agencies will need to implement the minimum wage into new contracts. After 2022, the federal contractor minimum wage will be indexed to inflation.

The minimum wage for tipped contractors will gradually increase until it reaches the minimum wage for all federal contractors in January 2024.

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 2021 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 to $14.00 per hour in states Arizona, Colorado, California, and Washington.

  • Alabama: $7.25 
  • Alaska: $10.34
  • Arizona: $12.15
  • Arkansas: $11.00
  • California: $14.00 (Employers with 26 or more employees)
  • Colorado: $12.32
  • Connecticut: $12.00 ($13.00 effective August 1, 2021)
  • Delaware: $9.25
  • District of Columbia: $15.00 (Annual indexing beginning July 1, 2021)
  • Florida: $8.56 ($10.00 September 30, 2021, with annual $1 increases to $15.00 by September 2026)
  • Georgia: $7.25 ($5.15 if not covered by federal regulations)
  • Guam: $8.75 ($9.25 effective March 2021)
  • Hawaii: $10.10 
  • Idaho: $7.25
  • Illinois: $11.00
  • Indiana: $7.25
  • Iowa: $7.25 
  • Kansas: $7.25
  • Kentucky: $7.25
  • Louisiana: $7.25 
  • Maine: $12.15
  • Maryland: $11.75 
  • Massachusetts: $13.50
  • Michigan: $9.87
  • Minnesota: $10.08 ($8.21 for small employers with less than 500k in annual sales)
  • Mississippi: $7.25 
  • Missouri: $10.30
  • Montana: $8.75 ($4.00 for businesses with gross annual sales of $110,000 or less)
  • Nebraska: $9.00
  • Nevada: $9.00 ($9.75 effective July 2021) (Firms providing health insurance to their employees may pay a wage $1.00 less than the specified minimum wage.)
  • New Hampshire: $7.25 
  • New Jersey: $12.00
  • New Mexico: $10.50
  • New York: $12.50 
  • North Carolina: $7.25 
  • North Dakota: $7.25
  • Ohio: $8.80 ($7.25 for employers grossing $323,000 or less)
  • Oklahoma: $7.25
  • Oregon: $12.00 ($12.75 effective July 1, 2021)
  • Pennsylvania: $7.25
  • Puerto Rico: $7.25 
  •  Rhode Island: $11.50 
  • South Carolina: $7.25 
  • South Dakota: $9.45
  • Tennessee: $7.25 
  • Texas: $7.25
  • Utah: $7.25
  • Vermont: $11.75
  • U.S. Virgin Islands: $10.50
  • Virginia: $7.25 ($9.50, effective May 1, 2021)
  • Washington: $13.69
  • West Virginia: $8.75
  • Wisconsin: $7.25
  • Wyoming: $7.25 ($5.15 for employers not covered by the Fair Labor Standards Act)

Minimum Wage Rates for 2020 Listed by State

  • 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 ($10.00 September 30, 2021, with annual $1 increases to $15.00 by September 2026)
  • 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 for employers covered by the Federal Fair Labor Standards Act)
  • 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 48 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
  • Novato, California
  • Oakland, California
  • Palo Alto, California
  • Pasadena, California
  • Petaluma, 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
  • Santa Rosa, California
  • SeaTac, Washington
  • Seattle, Washington
  • Sonoma, California
  • 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: $15
  • Bank of America: $20
  • JP Morgan Chase: $16.50–$18 (based on location)
  • Huntington National Bank: $16
  • Facebook: $15–$20 (based on location)
  • Wells Fargo: $15–$20 (based on location)
  • Amazon: $15
  • Hobby Lobby $17 (for full-time workers)
  • Costco: $15
  • Charter Communications/Spectrum: $18.00
  • Ben & Jerry's: $18.13
  • Google: $15
  • Aetna: $16
  • Best Buy: $15
  • Hartford HealthCare: $15
  • Walmart: $11

Minimum wage rates may change during the calendar year. Check with your state department of labor for rates and wages specific to your location.