Quick Answer: Can States Pay Less Than Federal Minimum Wage?

Does federal minimum wage override state?

States can pass their own minimum wage laws.

If a state has no minimum wage law or its minimum wage is lower than the federal law, workers are entitled to the federal wage.

If a state’s minimum wage is higher than the federal one, workers are entitled to the state-specific wage..

What states pay federal minimum wage?

29 statesSummary. Currently, 29 states and D.C. have minimum wages above the federal minimum wage of $7.25 per hour. Five states have not adopted a state minimum wage: Alabama, Louisiana, Mississippi, South Carolina and Tennessee.

How many states have a minimum wage higher than the federal minimum wage?

25 states25 states are raising their minimum wage in 2021.

What happens if a state’s minimum wage is lower than the federal minimum wage?

If the state or local minimum wage is lower than the federal minimum wage, you must pay your employees at least the federal rate. … If the state or local minimum wage is higher than the federal rate, pay your employees the state or local rate, whichever is greater.

What states have a $15 an hour minimum wage?

In addition to Florida, the following states have approved $15 an hour minimum wage increases: California. Connecticut. Illinois.

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

The federal minimum wage for covered nonexempt employees is $7.25 per hour. Many states also have minimum wage laws. In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages.

What is federal minimum wage right now?

$7.25 per hourEmployers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.

Will the minimum wage go up in 2021?

Following the recommendations of the Low Pay Commission published earlier this month, the Government has announced the increased National Living Wage (NLW) and National Minimum Wage (NMW) rates which will come into force from April 2021.

What is the national living wage 2020?

This short report accompanies the 2020 increases in the National Living Wage (NLW) and National Minimum Wage (NMW). This year’s increase in the NLW, to £8.72, brings the rate to the target of 60 per cent of median earnings, originally set in 2015.

What jobs are not covered by the federal minimum wage?

Federal law exempts entirely from minimum wage requirements groups of workers such as white collar employees (those employed in executive, administrative, professional, or outside sales positions), farm workers employed on small farms, seasonal recreational employees, and companions for the elderly.

Who has the highest minimum wage in the US?

Washington D.CBeginning in January 2019, Washington D.C has the highest minimum wages in the country, at $14.00 per hour. New York City’s minimum wage for companies with 11 or more employees became $15.00 per hour on December 31, 2018.

What 24 states raise minimum wage?

24 states, D.C. raising minimum wage in 2021Alaska, to $10.34; Jan. … Arizona, to $12.15; Jan. … Arkansas, to $11; Jan. … California, to $14; Jan. … Colorado, to $12.32; Jan. … Connecticut, to $13; Jan. … Florida, to $8.65; Jan. … Illinois, to $11; Jan.More items…•

What happens if you make more than minimum wage and it increases?

Pros of a Higher Minimum Wage Increased wages and spending raise demand and create more jobs. Workers stay with employers longer (instead of seeking out better-paying work with other companies) reducing businesses’ turnover, hiring, and training costs. Lower unemployment and higher wages increase tax revenues.