The federal minimum wage is $7.25 per hour under the Fair Labor Standards Act.
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FAIR LABOR STANDARDS ACT OF 1938 [As Amended Through P.L. 117–328, Enacted December 29, 2022]
Confirms the federal minimum wage is $7.25 per hour as per the Fair Labor Standards Act.
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FAIR LABOR STANDARDS ACT OF 1938 [As Amended Through P.L. 117–328, Enacted December 29, 2022] øCurrency: This publication is a compilation of the text of Chapter 676 of the 75th Congress. It was last amended by the public law listed in the As Amended Through note above and below at the bottom of each page of the pdf version and reflects current law through the date of the enactment of the public law listed at øNote: While this publication does not represent an official version of any Federal statute, substantial efforts have been made to ensure the accuracy of its contents. The official version of Federal law is found in the United States Statutes at Large and in the United States Code. The legal effect to be given to the Statutes at Large and the United States Code is established by statute (1 U.S.C. 112, 204).¿ AN ACT To provide for the establishment of fair labor standards in employments in and affecting interstate commerce, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the ‘‘Fair Labor Standards Act of 1938.’’ ø29 U.S.C. 201¿ Enacted June 25, 1938, ch. 676, sec. 1, 52 Stat. 1060. FINDING AND DECLARATION OF POLICY ... 25, ... 49, ch. 736, sec. 2, 63 Stat. 910; amended April 8, 1974, P.L. 93–259, sec. 7(a), 88 Stat. 62. ... MINIMUM WAGES SEC. 6. (a) Every employer shall pay to each of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, wages at the following rates: (1) 1 except as otherwise provided in this section, not less than— (A) $5.85 an hour, beginning on the 60th day after the date of enactment of the Fair Minimum Wage Act of 2007; (B) $6.55 an hour, beginning 12 months after that 60th day; and (C) $7.25 an hour, beginning 24 months after that 60th day; (2) if such employee is a home worker in Puerto Rico or the Virgin Islands, not less than the minimum piece rate pre scribed by regulation or order; or, if no such minimum piece rate is in effect, any piece rate adopted by such employer which shall yield, to the proportion or class of employees pre scribed by regulation or order, not less than the applicable minimum hourly wage rate. Such minimum piece rates or em ployer piece rates shall be commensurate with, and shall be paid in lieu of, the minimum hourly wage rate applicable under the provisions of this section. The Secretary of Labor, or his authorized representative, shall have power to make such regulations or orders as are necessary or appropriate to carry out any of the provisions of this paragraph, including the power without limiting the generality of the foregoing, to de fine any operation or occupation which is performed by such home work employees in Puerto Rico or the Virgin Islands; to establish minimum piece rates for any operation or occupation so defined; to prescribe the method and procedure for ascertaining and promulgating minimum piece rates; to pre scribe standards for employer piece rates, including the propor tion or class of employees who shall receive not less than the minimum hourly wage rate; to define the term ‘‘home worker’’; and to prescribe the conditions under which employers, agents, contractors, and subcontractors shall cause goods to be pro duced by home workers; ... 2Paragraph (3) of section 6(a) was repealed and paragraphs (4) and (5) were redesignated as (3) and (4), respectively pursuant to the amendment made by section 8103(c)(1)(B) of Public Law 110–28. Paragraph (2) of section 8103(c) provides that the amendments ‘‘shall take effect 60 days after the date of enactment of this Act’’øMay 25, 2007¿. 3Section (d) was enacted by section 3 of the Equal Pay Act of 1963 (P.L. 88–38). Section 2 of that Act provided: SEC. 2. (a) The Congress hereby finds that the existence in industries engaged in commerce or in the production of goods for commerce of wage differentials based on sex— (1) depresses wages and living standards for employees necessary for their health and ef ficiency; (2) prevents the maximum utilization of the available labor resources; (3) tends to cause labor disputes, thereby burdening, affecting, and obstructing commerce; (4) burdens commerce and the free flow of goods in commerce; and (5) constitutes an unfair method of competition. (b) It is hereby declared to be the policy of this Act, through exercise by Congress of its power to regulate commerce among the several States and with foreign nations, to correct the condi tions above referred to in such industries. (3) 2 if such employee is employed as a seaman on an American vessel, not less than the rate which will provide to the employee, for the period covered by the wage payment, wages equal to compensation at the hourly rate prescribed by paragraph (1) of this subsection for all hours during such pe riod when he was actually on duty (including periods aboard ship when the employee was on watch or was, at the direction of a superior officer, performing work or standing by, but not including off-duty periods which are provided pursuant to the employment agreement); or (4) if such employee is employed in agriculture, not less than the minimum wage rate in effect under paragraph (1) after December 31, 1977. (b) Every employer shall pay to each of his employees (other than an employee to whom subsection (a)(5) applies) who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, and who in such work week is brought within the purview of this section by the amend ments made to this Act by the Fair Labor Standards Amendments of 1966, title IX of the Education Amendments of 1972, or the Fair Labor Standards Amendments of 1974, wages at the following rate: Effective after December 31, 1977, not less than the minimum wage rate in effect under subsection (a)(1). (c) øRepealed by Public Law 104–186.¿ (d) 3(1) No employer having employees subject to any provisions of this section shall discriminate, within any establishment in which such employees are employed, between employees on the basis of sex by paying wages to employees in such establishment at a rate less than the rate at which he pays wages to employees of the opposite sex in such establishment for equal work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions, except where such payment is made pursuant to (i) a seniority system; (ii) a merit system; (iii) a system which measures earnings by quantity or quality or production; or (iv) a differential based on any other factor other than sex: Provided, That an employer who is paying a wage rate differential in violation of this subsection shall not, in order to comply with the provisions of this subsection, reduce the wage rate of any employee. ... . (e)(1) ... services under any such contracts or sub contracts, such employer shall pay to each of his employees in such establishment wages at rates not less than those prescribed in sub section (a)(1) of this section. (f) Any employee— (1) who in any workweek is employed in domestic service in a household shall ... at a rate not less than the wage rate in effect under section 6(b) unless such employee’s compensation for such service would not because of section 209(a)(6) of the Social Security Act constitute wages for the purpose of title II of such Act, or (2) who in any workweek— (A ... ) is so employed ... a rate not less than the wage rate in effect under section 6(b). (g)(1) In lieu of the rate prescribed by subsection (a)(1), any employer may pay any employee of such employer, during
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Wages and the Fair Labor Standards Act | U.S. Department of Labor
States that the federal minimum wage is $7.25 per hour effective July 24, 2009.
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Wages and the Fair Labor Standards Act | U.S. Department of Labor ... The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek. - FLSA Minimum Wage: The federal minimum wage is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage. ... ## Applicable Laws and Regulations ... - Fair Labor Standards Act ... - 29 CFR Chapter V
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§ 206. Minimum wage (a) Employees engaged in commerce; home work ers in Puerto Rico and Virgin Islands; em ployees in American Samoa; seamen on American vessels; agricultural employees
Details the wage rates leading to the current $7.25 per hour minimum wage.
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§ 206. Minimum wage (a) Employees engaged in commerce; home work ers in Puerto Rico and Virgin Islands; em ployees in American Samoa; seamen on American vessels; agricultural employees Every employer shall pay to each of his em ployees who in any workweek is engaged in com merce or in the production of goods for com merce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, wages at the following rates: (1) except as otherwise provided in this sec tion, not less than— (A) $5.85 an hour, beginning on the 60th day after May 25, 2007; (B) $6.55 an hour, beginning 12 months after that 60th day; and (C) $7.25 an hour, beginning 24 months after that 60th day; (2) if such employee is a home worker in Puerto Rico or the Virgin Islands, not less than the minimum piece rate prescribed by regulation or order; or, if no such minimum piece rate is in effect, any piece rate adopted by such employer which shall yield, to the proportion or class of employees prescribed by regulation or order, not less than the applica ble minimum hourly wage rate. Such min imum piece rates or employer piece rates shall be commensurate with, and shall be paid in lieu of, the minimum hourly wage rate appli cable under the provisions of this section. The Administrator, or his authorized representa tive, shall have power to make such regula tions or orders as are necessary or appropriate to carry out any of the provisions of this para graph, including the power without limiting the generality of the foregoing, to define any operation or occupation which is performed by such home work employees in Puerto Rico or the Virgin Islands; to establish minimum piece rates for any operation or occupation so defined; to prescribe the method and procedure for ascertaining and promulgating minimum piece rates; to prescribe standards for em ployer piece rates, including the proportion or class of employees who shall receive not less than the minimum hourly wage rate; to define the term ‘‘home worker’’; and to prescribe the conditions under which employers, agents, contractors, and subcontractors shall cause goods to be produced by home workers; ... Subsection (a)(5), referred to in subsec. (b), was redes ignated subsec. (a)(4) of this section by Pub. L. 110–28, title VIII, §8103(c)(1)(B), May 25, 2007, 121 Stat. 189. The Fair Labor Standards Amendments of 1966, re ferred to in subsec. (b), is Pub. L. 89–601, Sept. 23, 1966, 80 Stat. 830. For complete classification of this Act to the Code, see Short Title of 1966 Amendment note set out under section 201 of this title and Tables. The Education Amendments of 1972, referred to in subsec. (b), is Pub. L. 92–318, June 23, 1972, 86 Stat. 235. Title IX of the Act, known as the Patsy Takemoto Mink Equal Opportunity in Education Act, is classified principally to chapter 38 (§1681 et seq.) of Title 20, Edu cation. For complete classification of title IX to the Code, see Short Title note set out under section 1681 of Title 20 and Tables. The Fair Labor Standards Amendments of 1974, re ferred to in subsec. (b), is Pub. L. 93–259, Apr. 8, 1974, 88 Stat. 55. For complete classification of this Act to the Code, see Short Title of 1974 Amendment note set out under section 201 of this title and Tables. The Social Security Act, referred to in subsec. (f)(1), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Title II of ... 2016—Subsec. (g)(2) to (5). Pub. L. 114–187 added pars. (2) to (5) and struck out former pars. (2) to (4) which read as follows: ‘‘(2) No employer may take any action to displace employees (including partial displacements such as re duction in hours, wages, or employment benefits) for purposes of hiring individuals at the wage authorized in paragraph (1). ‘‘(3) Any employer who violates this subsection shall be considered to have violated section 215(a)(3) of this title. ‘‘(4) This subsection shall only apply to an employee who has not attained the age of 20 years.’’ 2007—Subsec. (a)(1). Pub. L. 110–28, §8102(a), amended par. (1) generally. Prior to amendment, par. (1) read as follows: ‘‘except as otherwise provided in this section, not less than $4.25 an hour during the period ending on September 30, 1996, not less than $4.75 an hour during the year beginning on October 1, 1996, and not less than $5.15 an hour beginning September 1, 1997;’’. Subsec. (a)(3) to (5). Pub. L. 110–28, §8103(c)(1)(B), re designated pars. (4) and (5) as (3) and (4), respectively, and struck out former par. (3) which read as follows: ‘‘if such employee is employed in American Samoa, in lieu of the rate or rates provided by this subsection or sub section (b), not less than the applicable rate estab lished by the Secretary of Labor in accordance with recommendations of a special industry committee or committees which he shall appoint pursuant to sec tions 205 and 208 of this title. The minimum wage rate thus established shall not exceed the rate prescribed in paragraph (1) of this subsection;’’. 1996—Subsec. (a)(1). Pub. L. 104–188, §2104(b), amended par. (1) generally. Prior to amendment, par. (1) read as follows: ‘‘except as otherwise provided in this section, not less than $3.35 an hour during the period ending March 31, 1990, not less than $3.80 an hour during the year beginning April 1, 1990, and not less than $4.25 an hour after March 31, 1991;’’. Subsec. (c). Pub. L. 104–188, §2104(c), struck out sub sec. (c) which related to employees in Puerto Rico. Subsec. (g). Pub. L. 104–188, §2105(c), added subsec. (g). 1989—Subsec. (a)(1). Pub. L. 101–157, §2, amended par. (1) generally. Prior to amendment, par. (1) read as fol lows: ‘‘not less than $2.65 an hour during the year be ginning January 1, 1978, not less than $2.90 an hour dur ing the year beginning January 1, 1979, not less than $3.10 an hour during the year beginning January 1, 1980, and not less than $3.35 an hour after December 31, 1980, except as otherwise provided in this section;’’. Subsec. (a)(3). Pub. L. 101–157, §4(b)(1), substituted ‘‘pursuant to sections 205 and 208 of this title’’ for ‘‘in the same manner and pursuant to the same provisions as are applicable to the special industry committees provided for Puerto Rico and the Virgin Islands by this chapter as amended from time to time. Each such com mittee shall have the same powers and ... APPLICABILITY OF MINIMUM WAGE TO AMERICAN SAMOA AND THE COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS Pub. L. 110–28, title VIII, §8103(a), (b), May 25, 2007, 121 Stat. 188, 189, as amended by Pub. L. 111–117, div. D, title V, §520, Dec. 16, 2009, 123 Stat. 3283; Pub. L. 111–244, §2(a), Sept. 30, 2010, 124 Stat. 2618; Pub. L. 112–149, §4(a), July 26, 2012, 126 Stat. 1145; Pub. L. 113–34, §2, Sept. 18, 2013, 127 Stat. 518; Pub. L. 114–61, §1(a), Oct. 7, 2015, 129 Stat. 545, provided that: ‘‘(a) IN GENERAL.—Section 6 of the Fair Labor Stand ards Act of 1938 (29 U.S.C. 206) shall apply to American Samoa and the Commonwealth of the Northern Mar iana Islands. ‘‘(b) TRANSITION.—Notwithstanding subsection (a)— ‘‘(1) the minimum wage applicable to the Common wealth of the Northern Mariana Islands under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall be— ‘‘(A) $3.55 an hour, beginning on the 60th day after the date of enactment of this Act [May 25, 2007]; and ‘‘(B) increased by $0.50 an hour (or such lesser amount as may be necessary to equal the minimum wage under section 6(a)(1) of such Act), beginning 1 year after the date of enactment of this Act and each year thereafter until the minimum wage ap plicable to the Commonwealth of the Northern Mariana Islands under this paragraph is equal to the minimum wage set forth in such section, except that, beginning in 2010 and each year thereafter (ex cept 2011, 2013, and 2015 when there shall be no in-
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29 USC 206: Minimum wage
Provides the same wage rate progression confirming the $7.25 per hour rate.
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29 USC 206: Minimum wage ... 06: Minimum wage Text ... in effect on September ... From Title 29-LABORCHAPTER 8-FAIR LABOR STANDARDS ... ### §206. Minimum wage #### (a) Employees engaged in commerce; home workers in Puerto Rico and Virgin Islands; employees in American Samoa; seamen on American vessels; agricultural employees Every employer shall pay to each of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, wages at the following rates: (1) except as otherwise provided in this section, not less than- (A) $5.85 an hour, beginning on the 60th day after May 25, 2007; (B) $6.55 an hour, beginning 12 months after that 60th day; and (C) $7.25 an hour, beginning 24 months after that 60th day; (2) if such employee is a home worker in Puerto Rico or the Virgin Islands, not less than the minimum piece rate prescribed by regulation or order; or, if no such minimum piece rate is in effect, any piece rate adopted by such employer which shall yield, to the proportion or class of employees prescribed by regulation or order, not less than the applicable minimum hourly wage rate. Such minimum piece rates or employer piece rates shall be commensurate with, and shall be paid in lieu of, the minimum hourly wage rate applicable under the provisions of this section. The Administrator, or his authorized representative, shall have power to make such regulations or orders as are necessary or appropriate to carry out any of the provisions of this paragraph, including the power without limiting the generality of the foregoing, to define any operation or occupation which is performed by such home work employees in Puerto Rico or the Virgin Islands; to establish minimum piece rates for any operation or occupation so defined; to prescribe the method and procedure for ascertaining and promulgating minimum piece rates; to prescribe standards for employer piece rates, including the proportion or class of employees who shall receive not less than the minimum hourly wage rate; to define the term "home worker"; and to prescribe the conditions under which employers, agents, contractors, and subcontractors shall cause goods to be produced by home workers; (3) if such employee is employed as a seaman on an American vessel, not less than the rate which will provide to the employee, for the period covered by the wage payment, wages equal to compensation at the hourly rate prescribed by paragraph (1) of this subsection for all hours during such period when he was actually on duty (including periods aboard ship when the employee was on watch or was, at the direction of a superior officer, performing work or standing by, but not including off-duty periods which are provided pursuant to the employment agreement); or (4) if such employee is employed in agriculture, not less than the minimum wage rate in effect under paragraph (1) after December 31, 1977. #### (b) Additional applicability to employees pursuant to subsequent amendatory provisions Every employer shall pay to each of his employees (other than an employee to whom subsection (a)(5) 1 applies) who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, and who in such workweek is brought within the purview of this section by the amendments made to this chapter by the Fair Labor Standards Amendments of 1966, title IX of the Education Amendments of 1972 [20 U.S.C. 1681 et seq.], or the Fair Labor Standards Amendments of 1974, wages at the following rate: Effective after December 31, 1977, not less than the minimum wage rate in effect under subsection (a)(1). ... in subsec. (b), is Pub. L. 89–601, Sept. 23, 1966, 80 ... . For complete ... in subsec. ( ... ), is Pub ... L. 9 ... –259, Apr. 8, 19 ... , 8 ... Stat. 55. For complete classification of this Act to the Code, see Short Title ... note set out ... 201 of this title ... ) In the case of any such employee to whom subsection (a)(5) or subsection (b) would otherwise apply, the Secretary shall within sixty days after the effective date of the Fair Labor Standards Amendments of 1966 appoint a special industry committee in accordance with section 205 of this title to recommend the highest minimum wage rate or rates in accordance with the standards prescribed by section 208 of this title, but not in excess of the applicable rate provided by subsection (a)(5) or subsection (b), to be applicable to such employee in lieu of the rate or rates prescribed by subsection (a)(5) or subsection (b), as the case may be. The rate or rates recommended by the special industry committee shall be effective with respect to such employee upon the effective date of the ... order issued pursuant to such recommendation but not before sixty days after ... effective date of the Fair Labor Standards Amendments of 19 ... Pub. L. 114–61, §1(c), Oct. 7, 2015, 129 Stat. 546, provided that: "This Act [amending provisions set out as notes under this section], and the amendments made by this Act, shall take effect as of September 2 ... , 2015." ... 810 ... (b), ... 25, ... 7, 12 ... #### Applicability of Minimum Wage to American Samoa and the Commonwealth of the Northern Mariana Islands Pub. L. 110–28, title VIII, ... 8103(a), (b), May 25, 2007, 121 Stat. 188, 189, as amended by Pub. L. 111–117, div. D, title V, §520, Dec. 16, 2 ... 09, ... a), Sept. 3 ... 1145; Pub. L ... 11 ... 34, ... ; Pub. L. ... (a), ... 129 Stat. 545, provided that: "(a) In General.-Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206) shall apply to American Samoa and the Commonwealth of the Northern Mariana Islands. ... ) Transition.-Notwithstanding subsection (a)- "(1) the minimum wage applicable to the Commonwealth of the Northern Mariana Islands under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall be- "(A) $3.55 an hour, beginning on the 60th day after the date of enactment of this Act [May 25, 2007]; and "(B) increased by $0.50 an hour (or such lesser amount as may be necessary to equal the minimum wage under section 6(a)(1) of such Act), beginning 1 year after the date of enactment of this Act and each year thereafter until the minimum wage applicable to the Commonwealth of the Northern Mariana Islands under this paragraph is equal to the minimum wage set forth in such section, except that, beginning in 2010 and each year thereafter (except 2011, 2013, and 2015 when there shall be no increase), such increase shall occur on September 30; and "(2) the minimum wage applicable to American Samoa under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall be- "(A) the applicable wage rate in effect for each industry and classification as of September 29, 2015; and "(B) increased by $0.40 an hour (or such lesser amount as may be necessary to equal the minimum wage under section 6(a)(1) of such Act), beginning on September 30, 2015, and on September 30 of every third year thereafter, until the minimum wage applicable to American Samoa under this paragraph is equal to the minimum wage set forth in such section." ... .-Not later
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Fair Labor Standards Act | Coverage, Exemptions, & Overtime Rules - Britannica
mentions Fair Labor Standards Act; mentions Fair; mentions Labor
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Fair Labor Standards Act | Coverage, Exemptions, & Overtime Rules Britannica
California's statewide minimum wage was $16.00 per hour in 2024.
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California Minimum Wage MW-2023
Confirms the minimum wage in California is $16.00 per hour effective January 1, 2024.
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California Minimum Wage MW-2024 Every employer, regardless of the number of employees, shall pay to each employee wages not less than the following: Effective January 1, 2024 Minimum Wage: $16.00 per hour *See Sec. 2 below Effective January 1, 2023 Minimum Wage: $15.50 per hour PREVIOUS YEARS EFFECTIVE DATE Employers with 25 or Fewer Employees* Employers with 26 or More Employees * January 1, 2022 $14.00 $15.00 January 1, 2021 $13.00 $14.00 *Employees treated as employed by a single qualified taxpayer pursuant to Revenue and Taxation Code section 23626 are treated as employees of that single taxpayer. To employers and representatives of persons working in industries and occupations in the State of California: SUMMARY OF ACTIONS TAKE NOTICE that on April 4, 2016, the Governor of California signed legislation passed by the California Legislature, raising the minimum wage for all industries. (SB 3, Stats of 2016, amending section 1182.12. of the California Labor Code.) and, in 2023, raised the minimum wage payable by certain Fast Food Restaurant employers (AB 1228, Stats. 2023) and Healthcare Facility employers (SB 525, Stats. 2023). Pursuant to its authority under Labor Code section 1182.13, the Department of Industrial Relations amends and republishes Sections 2, 3, and 5 of the General Minimum Wage Order, MW-2024. Section 1, Applicability, and Section 4, Separability, have not been changed. Consistent with these enactments, amendments are madeto the minimum wage, and the meals and lodging credits sections of all of the IWC's industry and occupation orders. This summary must be made available to employees in accordance with the IWC's wage orders. Copies of the full text of the amended wage orders may be obtained by downloading online at or by contacting your local Division of Labor Standards Enforcement office. 1. APPLICABILITY The provisions of this Order shall not apply to outside salespersons and individuals who are the parent, spouse, or children of the employer previously contained in this Order and the IWC's industry and occupation orders. Exceptions and modifications provided by statute or in Section 1, Applicability, and in other sections of the IWC's industry and occupation orders may be used where such provisions are enforceable and applicable to the employer. 2. MINIMUM WAGES Every employershall pay to each employee wages not lessthan those stated above, on each effective date, per hour for all hours worked, except the following who shall pay no less than the specified minimum wage to each employee: Fast Food Restaurant employers under Part 4.5.5, of Division 2 of the Labor Code (commencing with Labor Code section 1474), effective April 1, 2024; and Healthcare Facility employers under Labor Code section 1182.14, effective June 1, 2024. Note: A supplement to this order is forthcoming. 3. MEALS AND LODGING CREDITS - TAB LE When credit for meals or lodging is used to meet part of the employer's minimum wage obligation, the amounts so credited pursuant to a voluntary written agreement may not be more than the following: ... $1,336.65 /month Breakfast $5.06 $4.70 $5.42 $5.06 $5.60 $5.78 Lunch $6.97 $6.47 $7.47 $6.97 $7.72 $7.97 Dinner $9.35 $8.68 $10.02 $9.35 $10.35 $10.68 Meals or lodging may not be credited against the minimum wage without a voluntary written agreement between the employer and the employee. When credit for meals or lodging is used to meet part of the employer's minimum wage obligation, the amounts so credited may not be more than the amounts stated in the table above. 4. SEPARABILITY If the application of any provision of this Order, or any section, subsection, subdivision, sentence, clause, phrase, word or portion of this Order should be held invalid, unconstitutional, unauthorized, or prohibited by statute, the remaining provisions thereof shall not be affected thereby, but shall continue to be given full force and effect as if the part so held invalid or unconstitutional had not been included herein. 5. AMENDED PROVISIONS This Order amendsthe minimum wage and meals and lodging credits in MW-2023, as well as in the IWC’s industry and occupation orders. (See Orders 1-15, Secs. 4 and 10; and Order 16, Secs. 4 and 9.) This Order makes no other changes to the IWC’s industry and occupation orders. These Amendments to the Wage Orders shall be in effect as of January 1, 2024. Questions about enforcement should be directed to the Labor Commissioner's Office. For the address and telephone number of the office nearest you, information can be found on the internet at www.dir.ca.gov/DLSE/dlse.html or under a search for “California Labor Commissioner's Office” on the internet or any other directory. The Labor Commissioner has offices in the following cities: Bakersfield, El Centro, Fresno, Long Beach, Los Angeles, Oakland, Redding, Sacramento, Salinas, San Bernardino, San Diego, San Francisco, San Jose, Santa Ana, Santa Barbara, Santa Rosa, Stockton, and Van Nuys.
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California’s Minimum Wage to Increase to $16 per hour in January 2024 | California Department of Industrial Relations
States that California's minimum wage will increase to $16 per hour on January 1, 2024.
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California’s Minimum Wage to Increase to $16 per hour in January 2024 | California Department of Industrial Relations Release Number: 2023-66 Date: September 26, 2023 ... Oakland—California’s minimum wage will increase to $16 per hour for all employers on January 1, 2024. Some cities and counties in California have a local minimum wage that is higher than the state rate. State law requires that most California workers be paid the minimum wage. Workers paid less than the minimum wage are urged to contact the Labor Commissioner’s Office in their area to file a wage claim. The change in the minimum wage also affects the minimum salary an employee must earn to meet one part of the overtime exemption test. Exempt employees are not subject to the payment of overtime for hours worked. An employee must earn no less than two times the state’s minimum wage for full-time work to meet this initial requirement of the exemption test. As of January 1, 2024, employees in California must earn an annual salary of no less than $66,560 to meet this threshold requirement. ... One of the protections of the minimum wage law is an annual review of the wage rate using the U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W). The Department of Finance calculated that the U.S. CPI-W increased by 6.16 percent for the period from July 1, 2022, to June 30, 2023, compared to the prior 12-month period. The minimum wage increases each year by the lesser of 3.5 percent, and the rate of change in the averages of the two most recent U.S. CPI-W, unless those averages are negative. If the averages are negative, there is no change in the minimum wage for the following year. On July 31, 2023, Governor Newsom certified the minimum wage increase for all employers for 2024.
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PERSONAL SERVICE INDUSTRY
Indicates that all employers in California must pay a minimum wage of $16.00 per hour starting January 1, 2024.
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Effective January 1, 2001 as amended Sections 4(A) and 10(C) amended and republished by the Department of Industrial Relations, effective January 1, 2024, pursuant to SB 3, Chapter 4, Statutes of 2016 and section 1182.13 of the Labor Code ... TAKE NOTICE: To employers and representatives of persons working in industries and occupations in the State of California: The Department of Industrial Relations amends and republishes the minimum wage and meals and lodging credits in the Industrial Welfare Commission’s Orders as a result of legislation enacted (SB 3, Ch. 4, Stats of 2016, amending section 1182.12 of the California Labor Code), and pursuant to section 1182.13 of the California Labor Code. The amendments and republishing make no other changes to the IWC’s Orders. ... (d) Who customarily and regularly exercises discretion and independent judgment; and (e) Who is primarily engaged in ... meet the test of the ... activities constituting exempt work and non-exempt work ... be construed in the same manner as such items are construed in the following regulations under the Fair Labor Standards Act effective as of the date of this order: 29 C.F.R. Sections 541.102, 541.104-111, and 541.115-116. Exempt work shall include, for example, all work that is directly and closely related to exempt work and work which is properly viewed as a means for carrying out exempt functions. The work actually performed by the employee during the course of the workweek must, first and foremost, be examined and the amount of time the employee spends on such work, together with the employer’s realistic expectations and the realistic requirements of the job, shall be considered in determining whether the employee satisfies this requirement. (f) Such an employee must also earn a monthly salary equivalent to no less than two (2) times the state minimum wage for full-time employment. Full-time employment is defined in Labor Code Section 515(c) as 40 hours perweek. (2) Administrative Exemption. A person employed in an administrative capacity means anyemployee: (a) Whose duties and responsibilities involve either: (i) The performance of office or non-manual work directly related to management policies or general business operations of his/her employer or his/her employer’s customers; or (ii) The performance of functions in the administration of a school system, or educational establishment or institution, or of a department or subdivision thereof, in work directly related to the academic instruction or training carried on therein; and ... engaged in duties that ... date of this order: ... 9 C.F. ... 541 ... -20 ... 541 ... 207-208, 541.21 ... , and ... ) Such employee must ... earn a monthly ... equivalent to no less ... for full-time employment. Full- ... 515 ... c) as ... hours perweek ... 4. MINIMUM WAGES (A) Every employer shall pay to each employee wages not less than the following: (1) All employers, regardless of the number of employees, shall pay to each employee: (a) Sixteen dollars ($16) per hour for all hours worked, effective January 1, 2024 and, (b) Fifteen dollars and fifty cents ($15.50) per hour for all hours worked, effective January 1, 2023. fifteen dollars and fifty cents ($15.50) per hour for all hours worked, effective January 1, 2023. (2) Prior to January 1, 2023, any employer who employs 26 or more employees shall pay to each employee wages not less than the following: (a) Fifteen dollars ($15.00) per hour for all hours worked, effective January 1, 2022, and (b) Fourteen dollars ($14.00) per hour for all hours worked, effective January 1, 2021. (3) Prior to January 1, 2023, any employer who employs 25 or fewer employees shall pay to each employee wages not less than the following: (a) Fourteen dollars ($14.00) per hour for all hours worked, effective January 1, 2022, and (b) Thirteen dollars ($13.00) per hour for all hours worked, effective January 1, 2021. Employees treated as employed by a single qualified taxpayer pursuant to Revenue and Taxation Code section 23626 are treated as employees of that single taxpayer. LEARNERS ... 160 hours of employment in occupations in which they have no previous similar or related experience, may ... 85 percent of the ... wage rounded to the
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PROFESSIONAL, TECHNICAL, CLERICAL,
Confirms the minimum wage of $16.00 per hour effective January 1, 2024, for all employers.
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MECHANICALANDSIM ... Effective January 1, 2001 as amended Sections 4(A) and 10(C) ... by the Department of Industrial Relations, effective January ... , 2024, pursuant to SB 13, Chapter 4, Statutes of 2016 and section 1182.13 of the ... TAKE NOTICE: To employers and representatives of persons working in industries and occupations in the State of California: The Department of Industrial Relations amends and republishes the minimum wage and meals and lodging credits in the Industrial Welfare Commission’s Orders as a result of legislation enacted (SB 3, Ch. 4, Stats of 2016, amending section 1182.12 of the California Labor Code), and pursuant to section 1182.13 of the California Labor Code. The amendments and republishing make no other changes to the IWC’s Orders. ... non- exempt work shall ... construed in the same manner as such items are construed in the following regulations under the Fair Labor Standards Act effective as of the date of this order: 29 C.F.R. Sections 541.102, 541.104-111, and 541.115-116. ... (f) Such an employee must also earn a monthly salary equivalent to no less than two (2) times the state minimum wage for full-time employment. Full-time employment is defined in Labor Code Section 515(c) as 40 hours per week. ... under the Fair Labor ... Act effective as of ... date of this order ... 201-205, ... 207 ... 4.MINIMUM WAGES (A) Every employer shall pay to each employee wages not less than the following: (1) All employers, regardless of the number of employees, shall pay to each employee (a) Sixteen dollars ($16) per hour for all hours worked, effective January 1, 2024 and, (b) Fifteen dollars and fifty cents ($15.50) per hour for all hours worked, effective January 1, 2023. (2) Prior to January 1, 2023, any employer who employs 26 or more employees shall pay to each employee wages not less than the following: (a) Fifteen dollars ($15.00) per hour for all hours worked, effective January 1, 2022; (b) Fourteen dollars ($14.00) per hour for all hours worked, effective January 1, 2021; and (3) Prior to January 1, 2023, any employer who employs 25 or fewer employees shall pay to each employee wages not less than the following: (a) Fourteen dollars ($14.00) per hour for all hours worked, effective January 1, 2022; (b) Thirteen dollars ($13.00) per hour for all hours worked, effective January 1, 2021; Employees treated as employed by a single qualified taxpayer pursuant to Revenue and Taxation Code section 23626 are treated as employees of that single taxpayer. LEARNERS. Employees during their first 160 hours of employment in occupations in which they have no previous similar or related experience, may be paid not less than 85 percent of the minimum wage rounded to the nearest nickel.
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California’s Low-Wage Workers and Minimum Wage - lao.ca.gov
Does not provide specific information about the 2024 minimum wage.
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California’s Low-Wage Workers and Minimum Wage lao.ca.gov
Raising the minimum wage always reduces employment.
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How Increasing the Federal Minimum Wage Could Affect Employment and Family Income
The source indicates that while some studies find reductions in employment, others find little or no effect, and some circumstances might even increase employment.
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In general, increasing the federal minimum wage would raise the earnings and family income of most low-wage workers and thus lift some families out of poverty—but doing so would cause other low-wage workers to become jobless, and their family income would fall. ... **How would increasing the minimum wage affect employment?**Raising the minimum wage would increase the cost of employing low-wage workers. As a result, some employers would employ fewer workers than they would have employed under a lower minimum wage. However, for certain workers or in some circumstances, employment could increase. Changes in employment would be seen in the number of jobless—not just unemployed—workers. Jobless workers include those who have dropped out of the labor force (because, for example, they believe no jobs are available for them) as well as unemployed workers (those who are searching for work). ... CBO estimate ... **In C ... ’s analysis, ... . Effects would generally be greater if the change ... if it led ... larger mandated increases ... if firms had more time ... if, for ... change was phased in ... a longer period), and if the minimum wage was indexed ... inflation or wage growth. ... Second, the responsiveness of employment to an increase in the minimum wage is uncertain. If employment was more responsive than CBO expects, then increases in the minimum wage would lead to larger declines in employment. By contrast, if employment was less responsive than CBO expects, the declines would be smaller. Findings in the research literature about how changes in the federal minimum wage affect employment vary widely. Many studies have found such changes have little or no effect, but many others have found that increases in minimum wages lead to substantial reductions in employment. ... of the interactive tool
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Minimum Wages and Employment: A Review of Evidence from the New Minimum Wage Research
The source notes a lack of consensus, with many studies showing negative effects but others showing no significant impact on employment.
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We review the burgeoning literature on the employment effects of minimum wages - in the United States and other countries - that was spurred by the new minimum wage research beginning in the early 1990s. Our review indicates that there is a wide range of existing estimates and, accordingly, a lack of consensus about the overall effects on low-wage employment of an increase in the minimum wage. However, the oft-stated assertion that recent research fails to support the traditional view that the minimum wage reduces the employment of low-wage workers is clearly incorrect. A sizable majority of the studies surveyed in this monograph give a relatively consistent (although not always statistically significant) indication of negative employment effects of minimum wages. In addition, among the papers we view as providing the most credible evidence, almost all point to negative employment effects, both for the United States as well as for many other countries. Two other important conclusions emerge from our review. First, we see very few - if any - studies that provide convincing evidence of positive employment effects of minimum wages, especially from those studies that focus on the broader groups (rather than a narrow industry) for which the competitive model predicts disemployment effects. Second, the studies that focus on the least-skilled groups provide relatively overwhelming evidence of stronger disemployment effects for these groups. ... I. Introduction For much of the past century, the minimum wage has been a controversial subject among policymakers and economists in the United States. From even before its inception as a major element of the 1938 Fair Labor Standards Act (1938), the minimum wage was a politically contentious issue, with early attempts by the states to establish a wage floor declared unconstitutional by the Supreme Court and President Franklin Roosevelt’s first attempt to legislate a federal minimum wage in 1933 similarly struck down. Eventually, however, Roosevelt prevailed and Congress passed the FLSA, setting the minimum wage at 25 cents per hour. For economists, the new minimum wage represented a means of testing alternative models of the labor market. Indeed, during the period immediately following passage of the FLSA, a fierce debate raged between economists who claimed that the low-wage labor market at the time was best characterized as a competitive market (the “marginalists”) and those who claimed that it was not (the “institutionalists”), in which the implications of the minimum wage were a central focus (Leonard, 2000). For example, Stigler (1946), while acknowledging that a higher minimum wage could theoretically raise employment in a labor market characterized by monopsony, argued that the competitive nature of low wage industries suggested that the displacement of low-wage labor was a more likely outcome. In reply, Lester (1947) dismissed Stigler’s model of competitive wage determination as inconsistent with existing business practices and argued that “reasoning about labor markets as though they were commodity markets seems to be an important explanation for erroneous conclusions on such matters as the minimum wage” (p. 146). In the aftermath of this exchange, other economists began to accumulate empirical evidence on the effects of the minimum wage, with much of this research suggesting that increases in the wage floor were having adverse effects on the employment opportunities of low-skilled workers (Goldfarb, 1974). Despite the unsettled debate within the economics profession, the Congress expanded coverage of the minimum wage significantly during the 1960s and 1970s, and by 1975, more than 90 percent of the workforce was effectively covered by the federal minimum wage, up from 63 percent in 1961 (Brown, ... 1999). Similarly, Congress steadily increased the minimum wage over this period from $1.00 per hour in 1960 to $2.30 by 1979, with the 1977 FLSA amendments further raising the minimum to $3.35 by 1981. However, these changes were enacted in an environment of considerable discord among policymakers about the appropriateness of raising the minimum wage, and the ongoing political debate about the costs and benefits of a wage floor led the Congress in 1977 to create the Minimum Wage Study Commission to “help it resolve the many controversial issues that have surrounded the federal minimum wage and overtime requirement since their origin in the Fair Labor Standards Act of 1938” (Minimum Wage Study Commission, vol. 1, p. xiii). The Commission published its report in May 1981, calling it “the most exhaustive inquiry ever undertaken into the issues surrounding the Act since its inception” (Minimum Wage Study Commission, Vol. 1, Letter of Transmittal). Although not its only focus, the report included a lengthy chapter summarizing the existing research on the employment effects of the minimum wage. This chapter was based on a review of the literature by Charles Brown, Curtis Gilroy, and Andrew Kohen (BGK), three of the senior economists on the Commission staff. These authors subsequently published a revised version of their review in the June 1982 issue of the Journal of Economic Literature, in which they summarized the existing research as suggesting that “time-series studies typically find that a 10 percent increase in the minimum wage reduces teenage employment by one to three percent” (p. 524). This range subsequently came to be thought of as the consensus view of economists on the employment effects of the minimum wage. ... model, the effect of the minimum wage on any given set of workers will depend on, among other things, the elasticities of substitution across different types of workers and cross-elasticities of demand across different types of goods. However, some empirical tendencies tend to match up better with one model or the other, and we try to provide a sense of what these tendencies are. Third, many economists or policymakers perusing the existing literature may find it quite difficult to decide what the evidence on minimum wages now says. More than 100 studies have been published on the effects of minimum wage increases on employment since the 1990s. And, in addition to discordant results, the findings from the newer research on minimum wages are summarized differently in different places. In some cases, the new minimum wage research is described as failing to find evidence of disemployment effects. For example, Bazen (2000) states that “(t)he latest studies of the experience of the USA and the UK in general find no evidence of negative effects on youth employment” (p. 64). Somewhat more cautiously, Flinn (2006) writes that “these recent studies have been particularly useful in indicating that the “textbook” competitive model of the labor market ... may have serious deficiencies in accounting for minimum wage effects on labor market outcomes ...” (pp. 1013-4). In contrast, others summarize the findings as more ambiguous, suggesting that no conclusions can be drawn, and that positive effects may be as likely as negative effects. Lemos (2004), for example, asserts that “there is no consensus on the direction and size of the effect on employment” (p. 219), while Stewart (2002) notes that some studies find employment effects to be “absent or positive” and that others find “significant negative effects” (p. 585). 2 In contrast, much of our own work tends to find negative employment effects for the lowest-skilled groups. Given the differences in the conclusions one might draw depending on what one reads, and the difficulties of wading through the mass of recent studies, we thought it would be ... ities with respect to the minimum wage ranged from about −.1 to −.2 for teenagers and from −.15 to −.2 for the youth population as a whole. In addition, we found that the presence of a youth subminimum in
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Rethinking the Minimum Wage: The U-Shaped Relationship with Unemployment and Who Bears the Burden | De Economist | Springer Nature Link
The source describes a U-shaped relationship, where initially the minimum wage reduces unemployment, contradicting the claim that it always reduces employment.
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This article carries out an empirical analysis of the controversial relation between the minimum wage and unemployment. To do this, it uses panel data for 26 countries for 2001–2022 and the fixed effects and S-GMM methods. The results are robust and indicate a non-linear relationship—specifically, a U-shaped pattern—between the minimum wage and unemployment. Initially, the minimum wage has a strong impact on reducing unemployment, but this effect diminishes with further raising. Above a certain level, the minimum wage has the opposite effect and increases unemployment. In addition, the results indicate that this turning point is low, meaning that overall, there is little room for countries to use the minimum wage without harming employment. The effect on economic activity seems to be an important transmission channel for the impact of the minimum wage on unemployment. Individuals with basic education and young people are the most impacted groups by an increase in the minimum wage, in terms of both positive and negative effects. They are followed by older people and women. On the other hand, adults and individuals with advanced education are the least impacted. Finally, investment and institutional quality, as well as sound macroeconomic aggregates, are important factors in reducing unemployment. ... Neumark, D., & Corella, L. F. M. (2021). Do minimum wages reduce employment in developing countries? A survey and exploration of conflicting ... . World Development, 137, Article 105165.
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August 2024, revised October 2024
The source discusses the traditional view of reduced employment but also notes challenges to this view and mentions potential positive effects advocated by international organizations.
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Minimum wage policies have evolved from their initial introduction, and have become an important tool used by many countries to address various economic and social challenges. The debate and perspectives on minimum wages have also evolved considerably, influenced by both changing economic theories and empirical research. Although economists were highly skeptical about the benefits of the policy throughout much of the previous century, that view was seriously challenged beginning in the 1990s. Today, in the 21st century, there is widespread interest in making greater use of minimum wages (Manning, 2021). Countries around the world are introducing or raising their minimum wages at an unprecedented rate. Major international organizations such as the OECD, the IMF, and the World Bank have advocated for the policy as a means to alleviate inequality and even boost employment (ILO et al., 2012). ... The central debate on the minimum wage revolves around its employment consequences. A long-standing tradition in economics argues that a minimum wage set above the competitive level will reduce employment (Mill, 1848; Marshall, 1897; Stigler, 1946). These predictions were formalized within the neoclassical framework (Hicks, 1932). According to this framework, if labor markets are assumed to be 1) competitive with many firms passively accepting prevailing market-level wages, 2) characterized by free entry and exit of firms; and 3) composed of homogeneous workplaces from 3The minimum wage is often expressed relative to the median wage for this type of comparison (Dube, 2019a). Here we use the mean wage instead because it is easier to obtain for several countries. The ratio of the minimum wage to the median (or mean) wage is commonly referred to as the Kaitz index; the original formula also included the coverage rates by sector, but the relevance of that adjustment has greatly diminished as coverage rates today tend to be very high (Kaitz, 1970)). ... where shareL is the share of labor in production, σK,L is the elasticity of substitution between capital and labor, and η is the elasticity of output demand. The first term represents the substitution effect: since minimum wages make labor more expensive relative to capital, firms will substitute away from labor. The second term reflects the scale effect. In a competitive environment with free entry and exit, firms have a limited ability to absorb the minimum wage by lowering profits, so they raise prices to cover the increased expenses. This price increase leads to a reduction in consumer demand, which, in turn, decreases the scale of production and employment. The key insight from this framework is that introducing a binding minimum wage will have an unambiguously negative effect on labor demand, leading to lower employment. ... ; Card and Krueger, 1994b ... , 1 ... Second, by focusing on ... relative magnitudes and signs of the ... makers are interested in the consequences of the policy ... workers’ wage and employment, ... to infer from the ... elasticity with respect ... 10% increase ... the minimum wage leads ... 1% reduction employment, it could mean an own-wage employment elasticity of - ... if the minimum wage increases wages by 1%. This would be considered high. ... , the 1% ... could be also consistent with an own-wage elasticity of ... 0.1 if a 10% increase in the minimum wage leads to a 10% increase in wages ... In the latter case ... (see Lee and Saez ... 2012a
The federal minimum wage is higher than every state minimum wage.
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State Minimum Wages: An Overview | Congress.gov | Library of Congress
30 states and DC have minimum wages above the federal rate of $7.25.
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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. ... The Fair Labor Standards Act (FLSA), enacted in 1938, establishes a federal minimum wage that must be paid to all workers who are covered by and not exempt from the FLSA minimum wage provisions. 1 The FLSA first established a minimum wage of $0.25 per hour in 1938. 2 The act's minimum wage provisions have been amended numerous times since then, typically to expand coverage to certain worker groups or raise the wage rate. Since its establishment, the minimum wage rate has been raised 22 separate times. 3 The most recent change was enacted through P.L. 110-28 in 2007, which increased the minimum wage from $5.15 per hour to its current rate of $7.25 per hour in three steps (the final step occurring in 2009). 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. 4 The focus of this report is on states (including the District of Columbia [DC]) that have enacted minimum wage rates above the federal rate. Minimum wage rates established by local political entities (i.e., local minimum wages) are not discussed in this report, 5 nor are state laws establishing special minimum wages for youth, workers with disabilities, or other worker groups. 6 ... - 30 states and DC have enacted minimum wage rates above the federal rate of $7.25 per hour, - 13 states have minimum wage rates equal to the federal rate, - 2 states have minimum wage rates below the federal rate, and - 5 states have no state minimum wage requirement. 9 ... Of the 30 states and DC with minimum wage rates above the federal rate, 10 have state laws that established a schedule of minimum wage increases. 13 Of these, six currently have no scheduled increases beyond 2024—Arkansas, Maryland, Massachusetts, Nevada, New Mexico, and West Virginia—and four have legislatively scheduled rate increases after 2024—Delaware, Hawaii, Illinois, and Rhode Island (Table 1). ... While scheduled increases and indexation are the two main ways that states adjust their minimum wage rates, a few states also add a reference to the federal minimum wage rate as a possible mechanism of adjustment. Consequently, any time the federal rate changes, the state rate may also change. 15 Currently, Alaska, Connecticut, and Massachusetts reference the federal minimum wage as a supplement to their primary mechanisms of adjusting state minimum wage rates. 16 - In Alaska, the state minimum wage rate is indexed to the CPI-U for Urban Alaska. However, Alaska state law requires that the state minimum wage must be at least $1.00 per hour higher than the federal rate. So it is possible that a federal wage increase could trigger an increase in the Alaska minimum wage, but the main mechanism is indexation to inflation. - Connecticut state law requires that the state rate must be increased to one-half of 1% more than federal rate in the event that the federal rate increases above Connecticut's minimum wage. - Massachusetts law requires that the state rate must be at least $0.50 above federal minimum wage rate. ... - Following the three-step increase in the federal minimum wage from $5.15 to the current $7.25 (2007-2009), 15 states, comprising 33% of the civilian labor force, had rates above the federal minimum wage in 2010. By 2022, this rose to 30 states and DC, which means that the federal rate is the wage floor in states representing 37% of the civilian labor force. ... The 20 states with minimum wage rates equal to or below the federal rate do not have policies in place to move rates above the federal rate. A main policy difference within this group of states is the relationship of the state rate, if any, to the federal rate. For those 20 states with minimum wages equal to or below the federal rate, the state rate may be set in four ways: 26 ... to the FLSA: Five states have state minimum wage rates but do not reference the FLSA. Two of these states—Georgia and Wyoming—have state rates below $7.25, while three of these states—Kansas, North Dakota, and Wisconsin—have rates equal to $7.25. However, because there is no reference to the FLSA rate or other provision for adjustment in any of ... - State minimum wage equals the FLSA rate: Five states—Idaho, Indiana, New Hampshire, Oklahoma, and Texas—set the state rate equal to the FLSA rate. Thus, when the FLSA rate changes, the state rates in these five states change to equal the FLSA rate. - State minimum wage equals FLSA rate if FLSA is greater: In four states—Iowa, Kentucky, North Carolina, and Pennsylvania—the state rate is specified separately but includes a provision to equal the FLSA rate if the latter is above the state specified rate. ... Upon the establishment of a federal minimum wage in excess of the state minimum wage, the minimum wage in this State shall be equal in amount to the federal minimum wage, except as may otherwise be provided under this chapter." ... provisions of this section, in no case shall the minimum wage rate be less than $.50 higher than the effective federal minimum rate." ... 3. Except as may be otherwise provided pursuant to sections 290.500 to 290.530, and notwithstanding subsection 1* of this section, effective January 1, 2019, every employer shall pay to each employee wages at the rate of not less than $8.60 per hour, or wages at the same rate or rates set under the provisions of federal law as the prevailing federal minimum wage applicable to those covered jobs in interstate commerce, whichever rate per hour is higher. Thereafter, the minimum wage established by this subsection shall be increased each year by $.85 per hour, effective January 1 of each of the next four years, until it reaches $12.00 per hour, effective January 1, 2023. Thereafter, the minimum wage established by this subsection shall be increased or decreased on January 1, 2024, and on January 1 of successive years, per the method set forth in subsection 2** of this section. If at any time the federal minimum wage rate is above or is thereafter increased above the minimum wage then in effect under this subsection, the minimum wage required by this subsection shall continue to be increased pursuant to this subsection ***, but the higher federal rate shall immediately become the minimum wage required by this subsection and shall be increased or decreased per the method set forth in subsection 2** for so long as it remains higher than the state minimum wage required and increased pursuant to this subsection."
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State Minimum Wage Laws | U.S. Department of Labor
States adopt the federal rate only if it is higher than the state rate, indicating some states have higher rates.
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Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour. ... The State adopts the federal minimum wage rate by reference if the federal rate is greater than the State rate. ... The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act when the federal rate is greater than the State rate. Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour. ... The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act unless the State wage rate is higher than the federal rate. ... The Iowa minimum wage equals the federal minimum wage rate if it is set below the federal rate. ... The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act. ... The state adopts the federal minimum wage rate by reference if the federal rate is greater than the State rate. ... Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour. ... If the highest federal minimum wage is increased in excess of the State minimum wage in effect, then the State minimum wage will increase to the same amount, effective on the same date as the increase in the federal minimum wage. ... In no case shall the Massachusetts minimum wage rate be less than $0.50 higher than the effective federal minimum rate. ... The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act unless the State wage rate is higher than the federal rate. ... Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 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 producing or moving goods between states or otherwise covered by the federal Fair Labor Standards Act, that employee must be paid the greater of either the federal minimum wage or Montana's minimum wage. ... The New Hampshire minimum wage equals the federal minimum wage when set below the federal rate. ... The New York minimum wage equals the federal minimum wage when set below the federal rate. ... The Oklahoma state minimum wage law ... The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act. ... Applicable to all employees ... Labor Standards Act (FLSA) except for agricultural employees and employees of municipalities and the Commonwealth of Puerto Rico. ... Employers covered by the FLSA but who are not subject to the Puerto Rico Minimum Wage Act must pay at least the federal minimum wage of $7.25 per hour. ... Employers subject to the Fair Labor Standards Act must pay the current federal minimum wage of $7.25 per hour. ... Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour. ... The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act. The Texas State minimum wage law does ... . Instead the ... The State law excludes from coverage any employment that is subject to ... federal Fair Labor Standards Act. ... The Vermont minimum wage is adjusted annually based on a set formula. The State minimum wage is automatically replaced with the federal minimum wage rate if it is higher than the State minimum. ... Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour. Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires. Some local governments set minimum wage rates higher than their respective state minimum wage. Such differential provisions are not displayed in this table.
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Questions and Answers About the Minimum Wage | U.S. Department of Labor
Where state law requires a higher minimum wage, that higher standard applies.
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Under the Fair Labor Standards Act (FLSA), the federal minimum wage for covered nonexempt employees is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. Where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher minimum wage rate. ... Some states have minimum wage laws specific to tipped employees. When an employee is subject to both the federal and state wage laws, the employee is entitled to the provisions of each law which provide the greater benefits. ... ## What happens if state law requires payment of a higher minimum wage than federal law? Where state law requires a higher minimum wage, that higher standard applies.
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Consolidated Minimum Wage Table | U.S. Department of Labor
30 states plus DC have minimum wages higher than the federal rate.
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| Greater than federal MW | Equals federal MW of $7.25 | No state MW or state MW is lower than $7.25. Employers covered by the FLSA must pay the federal MW of $7.25. | | --- | --- | --- | | AK $13.00 | CNMI | AL | | AR $11.00 | IA | GA | | AZ $15.15 | ID | LA | | CA $16.90 | IN | MS | | CO $15.16 | KS | SC | | CT $16.94 | KY | TN | | DC $17.95 | NC | WY | | DE $15.00 | ND | AS 2 | | FL $14.00 | NH | | | HI $16.00 | OK | | | IL $15.00 | PA | | | MA $15.00 | TX | | | MD $15.00 | UT | | | ME $15.10 | WI | | | MI $13.73 | | | | MN $11.41 | | | | MO $15.00 | | | | MT $10.85 3 | | | | NE $15.00 | | | | NJ $15.92 or $15.23 4 | | | | NM $12.00 | | | | NV $12.00 | | | | NY $17.00 or $16.00 5 | | | | OH $11.00 or $7.25 6 | | | | OR $16.30 or $15.05 or $14.05 7 | | | | PR $10.50 | | | | RI $16.00 | | | | SD $11.85 | | | | VA $12.77 | | | | VT $14.42 | | | | WA $17.13 | | | | WV $8.75 | | | | VI $10.50 | | | | GU $9.25 | | | | 30 States + DC, GU, PR & VI | 13 States + CNMI | 7 States + AS | 1 Like the federal wage and hour law, State law often exempts particular occupations or industries from the minimum labor standard generally applied to covered employment. Some states also set subminimum rates for minors and/or students or exempt them from coverage, or have a training wage for new hires. Additionally, some local governments set minimum wage rates higher than their respective state minimum wage. Such differential provisions are not identified in this table. Users are encouraged to consult the laws of particular States in determining whether the State's minimum wage applies to a particular employment. This information often may be found at the websites maintained by State labor departments. Links to these websites are available at www.dol.gov/agencies/whd/state/contacts. 2 American Samoa has special minimum wage rates. 3 ... - Employers must pay the highest applicable minimum wage rate (whether federal, state, or local). Where the federal minimum wage is greater than the state minimum wage, the federal minimum wage must be paid. And where the state minimum wage is greater than the federal minimum wage, the state minimum wage must be paid. - There are 30 states plus the District of Columbia, Guam, Puerto Rico, and the Virgin Islands with minimum wage rates set higher than the federal minimum wage. - There are 13 states plus the Commonwealth of the Northern Mariana Islands that have a minimum wage requirement that is the same as the federal minimum wage requirement. The remaining 7 states and American Samoa do not have an established minimum wage requirement or have a minimum wage below the federal minimum wage.
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Source
05
29 USC 206: Minimum wage
Does not provide specific state minimum wage comparisons.
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### §206. Minimum wage ... Every employer shall pay to each of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, wages at the following rates: ... (2) if such employee is a home worker in Puerto Rico ... , not less than the minimum piece rate prescribed by regulation or order; or, if no such ... piece rate is in ... , any piece rate adopted by such employer which shall yield, to the proportion or class of employees prescribed by regulation or order, not less than the applicable minimum hourly wage rate. Such minimum piece rates or ... piece rates shall be ... with, and shall be paid in lieu of, the minimum hourly wage rate applicable under the provisions of this section. The Administrator, or his authorized representative, shall have power to make such regulations or orders as are necessary or appropriate to carry out any of ... provisions of this paragraph, including the power without limiting the generality of the foregoing, to define any operation or occupation which is performed by such home work employees in Puerto Rico or the ... to establish minimum piece rates for any operation or occupation so defined ... method and procedure for ascertaining and promulgating minimum piece rates; to prescribe standards for employer piece rates, including the proportion or class of employees who shall receive not less than the minimum hourly wage rate; to define the term "home worker"; and to prescribe the conditions under which employers, agents, contractors, and subcontractors shall cause goods to be produced by home workers; ... Every employer shall pay to each of his employees (other than an employee to whom subsection (a)(5) 1 applies) who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, and who in such workweek is brought within the purview of this section by the amendments made to this chapter by the Fair Labor Standards Amendments of 1966, title IX of the Education Amendments of 1972 [20 U.S.C. 1681 et seq.], or the Fair Labor Standards Amendments of 1974, wages at the following rate: Effective after December 31, 1977, not less than the minimum wage rate in effect under subsection (a)(1). ... "(3) In the case of any such employee to whom subsection (a)(5) or subsection (b) would otherwise apply, the Secretary shall within sixty days after the effective date of the Fair Labor Standards Amendments of 1966 appoint a special industry committee in accordance with section 205 of this title to recommend the highest minimum wage rate or rates in accordance with the standards prescribed by section 208 of this title, but not in excess of the applicable rate provided by subsection (a)(5) or subsection (b), to be applicable to such employee in lieu of the rate or rates prescribed by subsection (a)(5) or subsection (b), as the case may be. The rate or rates recommended by the special industry committee shall be effective with respect to such employee upon the effective date of the wage order issued pursuant to such recommendation but not before sixty days after the effective date of the Fair Labor Standards Amendments of 1966. ... special industry committee ... hold any hearing within ... rates for such ... shall have been recommended to ... in lieu of ... B). The ... "(a) In General.-Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206) shall apply to American Samoa and the Commonwealth of the Northern Mariana Islands. ... Transition.-Notwithstanding subsection (a)- "(1) the minimum wage applicable to the Commonwealth of the Northern Mariana Islands under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall be- "(A) $3.55 an hour, beginning on the 60th day after the date of enactment of this Act [May 25, 2007]; and "(B) increased by $0.50 an hour (or such lesser amount as may be necessary to equal the minimum wage under section 6(a)(1) of such Act), beginning 1 year after the date of enactment of this Act and each year thereafter until the minimum wage applicable to the Commonwealth of the Northern Mariana Islands under this paragraph is equal to the minimum wage set forth in such section, except that, beginning in 2010 and each year thereafter (except 2011, 2013, and 2015 when there shall be no increase), such increase shall occur on September 30; and "(2) the minimum wage applicable to American Samoa under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall be- "(A) the applicable wage rate in effect for each industry and classification as of September 29, 2015; and "(B) increased by $0.40 an hour (or such lesser amount as may be necessary to equal the minimum wage under section 6(a)(1) of such Act), beginning on September 30, 2015, and on September 30 of every third year thereafter, until the minimum wage applicable to American Samoa under this paragraph is equal to the minimum wage set forth in such section."
Therefore, policy designers should review the evidence carefully.
No claim · Recommendation / advisory
No claim (Recommendation / advisory) — not searched or cited.