State Minimum Wages: An Overview (CRS Report for Congress)
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| Release Date |
Revised Oct. 3, 2024 |
| Report Number |
R43792 |
| Report Type |
Report |
| Authors |
David H. Bradley, Specialist in Labor Economics |
| Source Agency |
Congressional Research Service |
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Summary:
The Fair Labor Standards Act (FLSA), enacted in 1938, is the federal law that establishes the
general minimum wage that must be paid to all covered, nonexempt workers employed in a state
or territory of the United States. While the FLSA mandates broad minimum wage coverage, states
and localities have the option of establishing minimum wage rates that are different from those
set by the FLSA. The FLSA provides that an individual is generally covered by the highest of the
state, local, or federal minimum wage.
This report covers minimum wage policies in the 50 states and the District of Columbia (DC) but
does not include information on local minimum wage policies. Based on current rates and
scheduled increases occurring at some point in 2024, minimum wage rates are above the federal
rate of $7.25 per hour in 30 states and DC, ranging from $8.75 (West Virginia) to $17.50 (DC).
Another 13 states have minimum wage rates equal to the federal rate. The remaining states have
minimum wage rates below the federal rate or do not have a state minimum wage requirement. In
the states with no minimum wage requirements or wage rates lower than the federal minimum
wage, only individuals who are not covered by the FLSA or who are covered but exempt from the
FLSA minimum wage provisions are subject to those lower rates.
States typically adjust their minimum wage rates in one of two ways: (1) legislatively scheduled
rate increases that may include one or several increments or (2) a measure of inflation to index
the value of the minimum wage to the general change in prices. Of the 30 states and DC with
minimum wage rates above the federal rate, 6 currently have no scheduled increases beyond
2024, 4 states have only legislatively scheduled rate increases after 2024, and 20 states and DC
have scheduled increases through a combination of planned increases and current- or future-year
indexation of state minimum wage rates to a measure of inflation.
Currently, seven states—California, Connecticut, Maryland, Massachusetts, New Jersey, New
York, and Washington—and DC have minimum wages of at least $15.00 per hour. In addition, six
states—Delaware, Florida, Hawaii, Illinois, Nebraska, and Rhode Island—have scheduled rate
increases to at least $15.00 per hour at some point between 2024 and 2026.
Because the federal and state minimum wage rates change at various times and in various
increments, the share of the labor force for which the federal rate is the binding wage floor has
changed over time. Since 1983, there have been three series of increases in the federal minimum
wage rate—1990-1991, 1996-1997, and 2007-2009. During that same period, there have been
numerous changes in state minimum wage policies. The share of the U.S. civilian labor force
living in states in which the federal minimum wage is the floor has fluctuated but generally
declined, and was about 37% in 2023.
