2025 Minimum Wage Guide for Federal, State, and Local Regulations Every Employer Must Know
As an employer, it's crucial to understand and comply with minimum wage laws to ensure fair compensation for your employees. Minimum wage regulations vary by location and can change over time, so staying informed is essential. Below, we've compiled key information to help you navigate minimum wage requirements effectively.
- What is Minimum Wage?
- Federal Minimum Wage
- Federal Minimum Wage Rate for 2025
- State and Local Minimum Wage Rates for 2025
- State Minimum Wage
- Local Minimum Wage
- Overview of 2025 Minimum Wage Updates Across All 50 States and Their Localities
- California City and County Minimum Wages in 2025
What is Minimum Wage?
The minimum wage is the lowest legal wage that employers can pay their employees for hourly work, set by federal, state, or local governments to ensure fair compensation for labor. Many states and cities have their own minimum wage laws, which vary based on factors such as employer size, industry, and location. Familiarizing yourself with these specific laws is crucial for ensuring compliance and fair compensation for employees.
Federal Minimum Wage
The federal minimum wage refers to the lowest hourly wage that employers are legally required to pay their employees for covered non-exempt work under the Fair Labor Standards Act (FLSA) in the United States. It serves as a baseline standard to ensure that workers receive fair compensation for their labor.
Federal Minimum Wage Rate for 2025
As of 2025, the federal minimum wage is set at $7.25 per hour. This rate is established by federal law and may be subject to periodic adjustments by Congress. It's important for employers to stay updated on any changes to the federal minimum wage to ensure compliance with wage laws.
State and Local Minimum Wage Rates for 2025
In addition to the federal minimum wage, many states and localities have their own minimum wage laws that may differ from federal rates. Employers must be aware of both state and local minimum wage rates to ensure compliance with applicable wage laws.
State Minimum Wage
The state minimum wage is the lowest hourly wage that employers are legally required to pay their employees within a specific state. Each state sets its own minimum wage rate, which may be higher than the federal minimum wage.
Local Minimum Wage
The local minimum wage is the lowest hourly wage that employers are legally required to pay their employees within a specific city or county. Local minimum wage rates can be higher than both federal and state minimum wages and are set by local ordinances.
Below is an overview of the minimum wage rates for 2025 for all 50 states and their respective localities
Overview of 2025 Minimum Wage Updates Across All 50 States and Their Localities
Alabama
Alabama does not have a state-mandated minimum wage law. Therefore, employers in Alabama who are subject to the Fair Labor Standards Act (FLSA) are required to pay the federal minimum wage, which is currently set at $7.25 per hour.
Alaska
In 2025, Alaska's minimum wage is set at $11.91 per hour, with overtime pay required after 8 hours per day or 40 hours per week. Under an approved flexible work plan, employees can work up to 10 hours per day before overtime applies.
Employers with fewer than four employees are exempt from the overtime requirement. The minimum wage is adjusted annually based on inflation.
Arizona
Starting January 1, 2025, Arizona’s minimum wage will increase to $14.70 per hour, up from $14.35, a 2.4% rise under the Fair Wages and Healthy Families Act.
Local minimum wage changes include:
- Flagstaff: $17.85 per hour
- Tucson: $15.00 per hour
Adjustments are tied to the Consumer Price Index (CPI). Employers can download the 2025 Arizona State Minimum Wage Poster here.
Arkansa
As of 2025, Arkansas' minimum wage remains $11.00 per hour, applicable to employers with four or more employees. This rate has been unchanged since January 1, 2021.
California
As of 2025, California's minimum wage is $16.50 per hour and is subject to annual adjustments based on a predefined formula. Additionally, various localities within California may have their own minimum wage rates that differ from the state's standard.
California City and County Minimum Wages in 2025
| Locality | Date | 2024 and 2025 minimum wage per hour |
|---|---|---|
| Alameda | 7/1/2024 | $17.00 |
| Belmont | 1/1/2025 | $18.30 |
| Berkeley | 7/1/2025 | $19.18 |
| Burlingame | 1/1/2025 | $17.43 |
| Cupertino | 1/1/2025 | $18.20 |
| Daly City | 1/1/2025 | $17.07 |
| East Palo Alto | 1/1/2025 | $17.45 |
| El Cerrito | 1/1/2025 | $18.34 |
| Emeryville | 7/1/2025 | $19.90 |
| Foster City | 1/1/2025 | $17.39 |
| Fremont | 7/1/2025 | $17.75 |
| Half Moon Bay | 1/1/2025 | $17.47 |
| Hayward | 1/1/2025 | $17.36 (small employers - $16.50) |
| Los Altos | 1/1/2025 | $18.20 |
| Los Angeles | 7/1/2025 | $17.87 (Los Angeles county unincorporated - $17.27) |
| Malibu | 7/1/2024 | $17.27 |
| Menlo Park | 1/1/2025 | $17.10 |
| Milpitas | 7/1/2025 | $18.20 |
| Mountain View | 1/1/2025 | $19.20 |
| Novato | 1/1/2025 | $17.27 per hour for businesses with 100+ employees $17.00 per hour for businesses with 26-99 employees $16.50 per hour for small businesses with 1-25 employees. |
| Oakland | 1/1/2025 | $16.89 |
| Palo Alto | 1/1/2025 | $18.20 |
| Petaluma | 1/1/2025 | $17.97 |
| Redwood City | 1/1/2025 | $18.20 |
| Richmond | 1/1/2025 | $17.77 |
| San Carlos | 1/1/2025 | $17.32 |
| San Diego | 1/1/2025 | $17.25 |
| San Francisco | 7/1/2025 | $19.18 |
| San Jose | 1/1/2025 | $17.95 |
| San Mateo | 1/1/2025 | $17.95 |
| San Mateo County (unincorporated) | 1/1/2025 | $17.46 |
| Santa Clara | 1/1/2025 | $18.20 |
| Santa Monica | 7/1/2025 | $17.81 |
| Santa Rosa | 1/1/2025 | $17.87 |
| Sonoma | 1/1/2025 | $18.02 (small employers – 16.96) |
| South San Francisco | 1/1/2025 | $17.70 |
| Sunnyvale | 1/1/2025 | $19.00 |
| West Hollywood | 1/1/2025 | $19.65 |
Colorado
In 2025, Colorado’s minimum wage will increase to $14.81 per hour, with tip credit rates at $11.79.
Local rates for 2025 include:
| Locality | 2025 Minimum Wage | 2025 with Tip Credit |
|---|---|---|
| Denver | $18.81 per hour | $15.79 per hour |
| Edgewater | $16.52 per hour | $13.50 per hour |
| Boulder County (unincorporated areas) | $16.57 per hour | $13.55 per hour |
| Boulder | $15.57 per hour | $12.55 per hour |
Connecticut
Connecticut's minimum wage will increase to $16.35 per hour effective January 1, 2025, up from $15.69 per hour in 2024. This adjustment follows a state law linking the wage to economic indicators, specifically the federal employment cost index. The increase reflects a 4.2% rise, ensuring that workers' wages grow alongside the economy.
Delaware
Delaware’s minimum wage will increase on January 1, 2025, rising to $15.00 per hour, up from $13.25 in 2024.
For tipped employees, the minimum cash wage will remain $2.23 per hour, with tip pooling allowed up to 15% of the tips received. If the federal minimum wage surpasses Delaware’s rate, the state will align with the federal standard.
Florida
In 2025, Florida's minimum wage is $13.00 per hour. The wage is adjusted annually based on a set formula, with increases of $1.00 every September 30th until it reaches $15.00 per hour on September 30, 2026
Georgia
As of 2025, Georgia's minimum wage is $5.15 per hour for employers with 6 or more employees. However, state law does not apply to workers covered by the federal Fair Labor Standards Act (FLSA) when the federal rate exceeds the state rate. Employers bound by FLSA are required to adhere to the federal minimum wage of $7.25 per hour.
Hawaii
In 2025, Hawaii's minimum wage is $14.00 per hour, and domestic service workers are covered by Hawaii's minimum wage regulations. The state law exempts employment covered by the federal Fair Labor Standards Act unless the state wage rate exceeds the federal rate.
Idaho
In 2025, Idaho's minimum wage remains at $7.25 per hour.
Illinois
Effective January 1, 2025, Illinois will set the minimum wage at $15.00 per hour for employees aged 18 and older. Employers who provide gratuities may pay tipped employees 60% of the minimum wage. Special licenses may be granted to pay sub-minimum wages for learners and workers with certain disabilities.
For 2025:
- Minimum wage: $15.00 per hour
- Tipped employees: $9.00 per hour
- Youth workers (under 18, less than 650 hours): $13.00 per hour
Chicago City Minimum Wage Rates (Effective July 1, 2024)
In Chicago, the minimum wage rates differ based on the type of employer and whether the employee is a youth worker or tipped worker. Starting July 1, 2024, the following rates apply:
| Category | Standard Employer (4 or more employees) | Youth Workers | Tipped Employees |
|---|---|---|---|
| Minimum Wage | $16.20 per hour | $15.00 per hour | $11.02 per hour (Standard) / $10.20 per hour (Youth) |
| Overtime Minimum Wage | $24.30 per hour | $22.50 per hour | $19.12 per hour (Standard) / $17.70 per hour (Youth) |
- Domestic Workers: All domestic workers must receive at least $16.20 per hour. If the tipped wage plus tips does not meet the minimum wage, the employer must make up the difference.
Indiana
In 2025, Indiana maintains a minimum wage of $7.25 per hour, applicable to employers with two or more employees.
Iowa
In 2025, Iowa's minimum wage remains at $7.25 per hour. If the federal minimum wage rate is set below this, Iowa's minimum wage equals the federal rate.
Kansas
In 2025, Kansas maintains its minimum wage at $7.25 per hour. The state law excludes from coverage any employment subject to the federal Fair Labor Standards Act.
Kentucky
In 2025, Kentucky's minimum wage remains at $7.25 per hour. If the federal minimum wage rate exceeds the state rate, Kentucky adopts the federal rate by reference.
Louisiana
Louisiana does not have a state-mandated minimum wage law. Employers subject to the Fair Labor Standards Act must adhere to the current federal minimum wage of $7.25 per hour.
Maine
Effective January 1, 2025:
- State Minimum Wage: Maine Minimum wage for 2025 is Increased to $14.65 per hour (up from $14.15).
- Tip Wage: For service employees, the minimum cash wage is set at $7.33 per hour. Tips must total at least $185 per month to meet the $14.65 per hour minimum.
- Overtime Exemption Salary Threshold: The minimum salary for exempt employees will rise to $1,128 per week, or $58,656 annually. This aligns with federal requirements.
City of Portland and Rockland Minimum Wage (Effective January 1, 2025)
| City | Effective Date | Minimum Wage | Direct Wage for Service Employees | Tip Requirements |
|---|---|---|---|---|
| Portland | January 1, 2025 | $15.50/hour | $7.75/hour | Tips + direct wage must average $15.50/hour, employer pays the difference. |
| Rockland | January 1, 2025 | $22.50 per hour | $7.75/hour | Tips + direct wage must meet $15.50/hour, employer pays the difference. |
Maryland
In 2025, Maryland's minimum wage stands at $15.00 per hour. Additionally, counties such as Montgomery and Howard have set higher local minimum wages.
The Minimum wage in Howard County and Montgomery County for 2025:
| County | Employer Size | Minimum Wage (2025) | Effective Date |
|---|---|---|---|
| Howard County | All employers | $16.00 per hour | January 1, 2025 |
| Howard County | Smaller employers (14 or fewer employees) | $15.50 per hour (increase) | January 1, 2026 |
| Howard County | Smaller employers (14 or fewer employees) | $16.00 per hour | July 1, 2026 |
| Montgomery County | Large employers (51+ employees) | $17.15 per hour | January 1, 2025 |
| Montgomery County | Mid-sized employers (11-50 employees) | $15.50 per hour | January 1, 2025 |
| Montgomery County | Small employers (1-10 employees) | $15.00 per hour | January 1, 2025 |
| Montgomery County | Large employers (51+ employees) | $17.60 per hour (increase) | July 1, 2025 |
Massachusetts
In 2025, Massachusetts set its minimum wage at $15.00 per hour. The state ensures that its minimum wage rate remains at least $0.50 higher than the effective federal minimum rate.
Michigan Minimum Wage Increase Schedule: 2025 and Beyond
| Effective Date | Minimum Wage | Tipped Employee | 85% Rate for Minors (Under 18) | Training Wage (Under 20, First 90 Days) |
|---|---|---|---|---|
| Jan 1 - Feb 20, 2025 | $10.56 | $4.01 | $8.98 | $4.25 |
| Feb 21, 2025 | $12.48 | $5.99 | $6.49 | $10.61 |
| Feb 21, 2026 | $13.29 | $7.97 | $5.32 | $11.30 |
| Feb 21, 2027 | $14.16 | $9.91 | $4.25 | $12.04 |
| Feb 21, 2028 | $14.97 | $11.98 | $2.99 | $12.72 |
| Feb 21, 2029 | $15.79 | $14.21 | $1.73 | $13.42 |
- Tipped Employees: The wage will be a percentage of the minimum hourly wage, starting at 48% in 2025, and gradually increasing each year until it reaches 100% by Feb. 21, 2030.
- Annual Adjustments: Starting in 2028, Michigan will adjust the minimum wage based on inflation every October, with changes effective in February of the following year.
Minnesota
Starting January 1, 2025, Minnesota's minimum wage will rise to $11.13 per hour for all employers, regardless of size, and will also apply to youth workers and J-1 visa employees. The training wage for workers under 20 years old will be adjusted to $9.08 per hour. This adjustment, driven by a 2.6% increase, ensures that the minimum wage keeps pace with inflation. Additionally, Minneapolis and St. Paul will continue to follow their local ordinances with higher minimum wage rates.
2025 Minimum Wage Increases for Minneapolis and Saint Paul
| City | Effective Date | Minimum Wage Rate | Coverage |
|---|---|---|---|
| Minneapolis | January 1, 2025 | $15.97/hour | Applies to all employees working in Minneapolis, regardless of age. |
| Saint Paul (Macro & Large Businesses) | January 1, 2025 | $15.97/hour | Applies to Macro and Large businesses in Saint Paul. |
| Saint Paul (Small Businesses) | July 1, 2025 | July 1, 2025 | Applies to Small businesses in Saint Paul. |
| Saint Paul (Micro Businesses) | July 1, 2025 | $13.25/hour | Applies to Micro businesses in Saint Paul. |
Mississippi
Mississippi does not have a state-mandated minimum wage law. Employers subject to the Fair Labor Standards Act are required to pay the current federal minimum wage of $7.25 per hour.
Missouri Minimum Wage Increase: 2025 and Beyond
As of 2025, Missouri's minimum wage will increase due to the approval of Proposition A.
- On January 1, 2025, the minimum wage will rise to $13.75 per hour.
- On January 1, 2026, the minimum wage will increase further to $15.00 per hour.
From 2026 onward, annual adjustments will be made based on the Consumer Price Index (CPI).
Montana
In 2025, Montana's minimum wage for businesses with gross annual sales exceeding $110,000 is $10.55 per hour. For businesses not covered by the Fair Labor Standards Act with gross annual sales of $110,000 or less, the minimum wage is $4.00 per hour.
A business not covered by the federal Fair Labor Standards Act whose gross annual sales are $110,000 or less may pay $4.00 per hour. However, if an individual employee is involved in interstate commerce or is otherwise covered by the Federal Fair Labor Standards Act, they must be paid the higher of the federal minimum wage or Montana's minimum wage. The minimum wage in Montana is adjusted annually based on a set formula.
Nebraska Minimum Wage Rates and Exemptions for 2025 and Beyond
In Nebraska, the minimum wage for 2025 will increase to $13.50 per hour, with further increases to $15.00 per hour in 2026. From 2027 onward, adjustments will be made annually based on the Consumer Price Index.
Exemptions include:
- Gratuity workers: Must earn at least $2.13 per hour, with tips making up the rest.
- Student-learners: Paid 75% of the minimum wage during training.
- Employees under 20: Can earn a training wage for 90 days at 75% of the federal minimum wage.
Certain workers, such as agricultural employees and baby-sitters, are exempt from the minimum wage law.
Nevada
In 2025, Nevada's minimum wage is $12.00 per hour. Employees earning less than 1.5 times the state minimum wage are entitled to premium pay for any hours worked over 8 hours in a day or 40 hours in a week. Employees earning at least 1.5 times the state minimum wage are only entitled to premium pay for hours worked more than 40 hours per week.
New Hampshire
In 2025, New Hampshire's minimum wage is $7.25 per hour. The state minimum wage is set to match the federal minimum wage if it falls below the federal rate.
New Jersey
In 2025, New Jersey’s minimum wage will increase to $15.49 per hour for most employees. For seasonal and small employers with fewer than six employees, the minimum wage will be $14.53 per hour. Agricultural workers will see a rise to $13.40 per hour, while long-term care facility direct care staff will see an increase to $18.49 per hour. These adjustments are based on the increase in the Consumer Price Index (CPI), ensuring that wages keep pace with the cost of living.
New Mexico
In 2025, New Mexico's minimum wage is set at $12.00 per hour.Additionally, certain cities and counties in New Mexico may set their own local minimum wage rates, which can differ from the statewide standard.
Albuquerque minimum wage:
Starting January 1, 2025, the minimum wage in Albuquerque, New Mexico will be $11.50 per hour. However, the State of New Mexico’s minimum wage of $12.00 per hour takes precedence, making it the prevailing wage for most employers. If an employer provides healthcare and/or childcare benefits worth at least $2,500 annually, the city’s minimum wage will be reduced to $10.50 per hour. Additionally, the minimum wage for tipped employees will be $7.20 per hour
Santa Fe
The updated Living Wage for Santa Fe, which serves as the minimum wage for the city, is $15.00 per hour, effective March 1, 2025. This rate is established to keep pace with inflation and is significantly higher than the federal minimum wage of $7.25 per hour.
New York State Minimum Wage Rates: 2025 and Beyond
The statewide minimum wage in New York for 2025 will be $15.50 per hour, and for 2026, it will increase to $16.00 per hour.
| Year | New York City | Nassau County | Suffolk County | Westchester County | Remainder of New York State |
|---|---|---|---|---|---|
| 2025 | $16.50 | $16.50 | $16.50 | $16.50 | $15.50 |
| 2026 | $17.00 | $17.00 | $17.00 | $17.00 | $16.00 |
Future Adjustments
- Starting in 2027: Minimum wage will increase annually based on the three-year moving average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region.
- An economic "off-ramp" provision is included to address potential economic or budget-related conditions.
North Carolina
In 2025, North Carolina's minimum wage is set at $7.25 per hour.
North Dakota
In 2025, North Dakota's minimum wage is $7.25 per hour.
Ohio
Starting January 1, 2025, Ohio’s minimum wage will rise to $10.70 per hour for non-tipped employees and $5.35 per hour for tipped employees at businesses with annual gross receipts exceeding $394,000. For smaller businesses with annual gross receipts of $394,000 or less, as well as for 14- and 15-year-old workers, the minimum wage will stay at $7.25 per hour, consistent with the federal minimum wage rate.
Oklahoma
In 2025, Oklahoma's minimum wage laws dictate that employers with ten or more full-time employees at any one location or with annual gross sales over $100,000 must pay a minimum wage of $7.25 per hour. For all other employers, the minimum wage is $2.00 per hour. Oklahoma's state minimum wage law adopts the federal minimum wage rate by reference, and it excludes from coverage any employment subject to the federal Fair Labor Standards Act.
Oregon
In 2025, Oregon's standard minimum wage rate is $14.70 per hour. The minimum wage in Oregon is adjusted annually on July 1st according to a predetermined formula. Additionally, there are different minimum wage rates in Oregon, with a higher rate in the Portland metro area and a lower rate in non-urban counties.
| Locality | 2025 minimum wage per hour |
|---|---|
| Portland Metro Area | $15.95 |
| Non-Urban counties | $13.70 |
Pennsylvania
As of 2025, the basic minimum rate in Pennsylvania is $7.25 per hour.
Rhode Island Minimum Wage for 2025
Starting January 1, 2025, Rhode Island’s minimum wage increases to $15.00 per hour under RI General Law §28-12.
Key exceptions include:
- Full-time students under 19: 90% of the minimum wage ($13.50/hour).
- 14 and 15-year-olds working under 24 hours/week: 75% of the minimum wage ($11.25/hour).
Tipped employees may earn a $3.89/hour tip credit, ensuring total pay meets the minimum wage requirement.
South Carolina
In South Carolina, there is no state minimum wage law. Employers in the state are required to adhere to the federal minimum wage set by the Fair Labor Standards Act, which is currently $7.25 per hour.
South Dakota
Starting January 1, 2025, the minimum wage in South Dakota will be:
- Non-Tipped Employees: $11.50 per hour
- Tipped Employees: $5.75 per hour
These rates are adjusted annually based on the Consumer Price Index, ensuring wages align with the cost of living.
Tennessee
In Tennessee, there is no state minimum wage law. Employers in the state must adhere to the federal minimum wage set by the Fair Labor Standards Act, which is currently $7.25 per hour.
Texas
In Texas for the year 2025, the basic minimum rate per hour is $7.25. The state law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act. Additionally, the Texas State minimum wage law does not contain current dollar minimums; instead, the state adopts the federal minimum wage rate by reference.
Utah
In Utah, for the year 2025, the basic minimum rate per hour is $7.25. The state law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act.
Vermont
Effective January 1, 2025, Vermont's minimum wage will increase to $14.01 per hour, up from $13.67 in 2024.
The tipped minimum wage will also rise to $7.01 per hour, up from $6.84. Employers must ensure that tipped employees receive the full minimum wage when tips do not meet the required amount. This increase is part of the state’s annual adjustment based on Vermont’s minimum wage laws.
Virginia
Effective January 1, 2025, Virginia’s minimum wage will rise to $12.41 per hour. This increase follows a 3.4% adjustment based on the latest Consumer Price Index (CPI) data. The adjusted wage rate will remain in effect through January 1, 2026, with future increases continuing to align with the annual CPI changes, ensuring wages keep pace with inflation.
Washington
Starting January 1, 2025, the minimum wage in Washington will increase to $16.66 per hour. For workers aged 14 or 15, the minimum wage will be 85% of the adult rate, which equates to $14.16 per hour.
It’s important to note that Washington's minimum wage is adjusted annually based on a predefined formula.
2025 Minimum Wage Rates for Washington Cities:
| City | Employer Type | Effective Date | 2025 Minimum Wage |
|---|---|---|---|
| Seattle | All Employers | Jan 1, 2025 | $20.76 |
| Renton | Large Employers | Jan 1, 2025 | $20.90 |
| Mid-Size Employers | Jan 1 - Jun 30, 2025 | $18.90 | |
| Mid-Size Employers | Jul 1 - Dec 31, 2025 | $19.90 | |
| Tukwila | Large Employers | Jan 1, 2025 | $21.10 |
| Mid-Size Employers | Jan 1 - Jun 30, 2025 | $20.10 | |
| Mid-Size Employers | Jul 1 - Dec 31, 2025 | $21.10 (same as large employers) | |
| SeaTac | Hospitality & Transport | Jan 1, 2025 | $20.17 |
| Bellingham | All Employers | Jan 1, 2025 | $17.66 (1.00 above state minimum) |
| All Employers | May 1, 2025 | $18.66 (2.00 above state minimum) |
West Virginia
In West Virginia, applicable to employers of 6 or more employees at one location, the basic minimum rate per hour for 2025 is $8.75.
Wisconsin
In Wisconsin, for the year 2025, the basic minimum rate per hour remains at $7.25.
Wyoming
In Wyoming, the basic minimum rate per hour for 2025 is $5.15. Employers subject to the Fair Labor Standards Act must pay the current federal minimum wage of $7.25 per hour.
Additional Considerations
In addition to basic minimum wage requirements, employers should be aware of other factors that may affect wage calculations, such as overtime pay, tipped employees, and youth employment laws. Failure to comply with minimum wage laws can result in legal consequences, including fines and penalties.
Stay Informed
Minimum wage laws can change, so it's crucial to stay informed about any updates or amendments to ensure ongoing compliance. Consult reputable sources such as government websites, labor departments, and legal counsel for the most up-to-date information on minimum wage requirements.
Conclusion
By understanding and complying with minimum wage laws, employers can demonstrate their commitment to fair compensation practices and create a positive work environment for their employees.
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This article has been updated from its original publication date of March 10, 2025.