Navigating minimum wage laws can be a complex and ever-changing task, especially for businesses operating across multiple states. While some states are steadily increasing their minimum wages to reach $15 per hour, others continue to follow the federal minimum wage. Staying informed is crucial to ensure compliance and avoid potential penalties. 

Here’s an overview of the federal minimum wage and a state-by-state breakdown of minimum wage rates for 2026. 

This information is for informational purposes only and should not be interpreted as legal advice. 

What is the Federal Minimum Wage? 

The federal minimum wage in the United States is set at $7.25 per hour. This rate is established by the Fair Labor Standards Act (FLSA), which governs wage and overtime standards for most private and public sector employees, known as “covered nonexempt workers.” 

The FLSA applies in states that either: 

• Have no state-specific minimum wage laws (e.g., Alabama, Louisiana, Mississippi, South Carolina, and Tennessee), or 

• Set a minimum wage below the federal rate (e.g., Georgia and Wyoming). 

In these cases, the federal minimum wage serves as the default standard. 

How Often Does the Federal Minimum Wage Change? 

Unlike many state minimum wages, the federal minimum wage is not tied to inflation. This means it does not automatically adjust to reflect changes in the cost of living. For the federal rate to increase, Congress must pass legislation, which the president must then sign into law. 

Since its introduction at 25¢ per hour in 1938, the federal minimum wage has been raised 22 times, with intervals ranging from one to ten years. The most recent increase occurred on July 24, 2009, when the rate was raised to $7.25 per hour. As of 2026, this marks a record-breaking 17 years without an update—the longest period in the law’s history. Until Congress takes action, the federal minimum wage will remain unchanged. 

2026 Minimum Wages by State 

To help your business stay compliant with the latest wage requirements for both full-time and part-time employees, we’ve compiled a detailed breakdown of state minimum wages for 2026. This information is sourced from official state and federal labor departments, including the U.S. Department of Labor and the National Conference of State Legislatures. 

Explore the interactive map below to see which states have updated their minimum wage rates for 2026. 

State-by-State Analysis of Minimum Wages 

Over the last decade, the push for higher minimum wages has gained significant momentum across the United States. According to the Economic Policy Institute’s Minimum Wage Tracker, 28 states and Washington, D.C. have updated their minimum wage laws since January 2014. Today, 30 states and Washington, D.C. have set minimum wages above the federal rate, and 63 localities have implemented minimum wages that exceed their state’s baseline. 

This upward trend highlights a growing consensus that the federal minimum wage of $7.25 per hour, unchanged since 2009, falls short of providing a livable income for many workers. In response, 19 states and Washington, D.C. have indexed their minimum wages to inflation, ensuring automatic annual adjustments to keep pace with rising costs. As public pressure from labor advocates and constituents continues, state legislatures are likely to maintain this trajectory of increasing minimum wage rates. 

States with the Highest Minimum Wages 

• New York:  $17.00 (New York City, Long Island, & Westchester)  | $16.00 (rest of the state) 

• Connecticut: $16.94 

• California: $16.90 

• Hawaii: $16.00 

• Rhode Island: $16.00 

These figures reflect a growing commitment to ensuring workers earn wages that better align with the cost of living in their respective regions. 

States with Minimum Wages at or Below the Federal Rate 

Some states either lack a statewide minimum wage law or default to the federal minimum wage of $7.25 per hour. These include: 

• No Statewide Minimum Wage Law: Alabama, Louisiana, Mississippi, South Carolina, Tennessee 

• States Matching the Federal Minimum Wage: Idaho, Indiana, Iowa, Kansas, Kentucky, New Hampshire, North Carolina, North Dakota, Pennsylvania, Texas, Utah, Wisconsin 

Who is Covered by Minimum Wage Laws? 

Minimum wage laws apply to nearly all non-exempt employees working for employers covered by the Fair Labor Standards Act (FLSA). This includes most businesses involved in interstate commerce or generating at least $500,000 in annual sales, as well as those subject to state or local wage laws. 

However, certain groups are exempt from minimum wage requirements, such as bona fide executives, many salaried professionals, outside salespeople, specific seasonal or recreational workers, and independent contractors. 

Which States Have a Minimum Wage Higher than $15 an Hour? 

Common Minimum Wage Exemptions 

Certain worker categories are exempt from standard minimum wage laws, including: 

• Tipped Employees: Can earn as little as $2.13/hour in cash wages if tips bring total pay to at least the minimum wage. 

• Youth Under 20: Eligible for a training wage of $4.25/hour during their first 90 days with an employer. 

• Full-Time Students: Employers with a DOL certificate may pay up to 85% of the minimum wage for retail, service, agriculture, or higher-ed jobs. 

• Student-Learners/Apprentices: Those in accredited vocational programs may earn 75% of the minimum wage under a special certificate. 

• Workers with Disabilities: Section 14(c) certificates allow “commensurate wages” based on productivity. 

• Fully Exempt Jobs: Includes small-farm workers, seasonal amusement park employees, outside salespeople, and newspaper deliverers. 

What are some state-by-state minimum wage exemptions? 

What are the compliance requirements for businesses operating in multiple states? 

Employers must adhere to the highest applicable minimum wage based on an employee’s work location. This means businesses need to monitor and comply with federal, state, and local wage laws across all jurisdictions where they operate. 

Federal vs. State Minimum Wage

The federal minimum wage serves as the nationwide pay floor, established by the Fair Labor Standards Act (FLSA). However, states and sometimes cities or counties can set their own minimum wages, which may be higher (or occasionally lower) than the federal rate. These local laws often include unique indexing formulas, exemptions, and enforcement rules. Employers are required to follow the highest applicable rate to ensure compliance. 

How Astrix Can Help 

Partnering with Astrix means we take on the role of the employer on file, assuming full responsibility for compliance with all wage laws and requirements. This significantly reduces your compliance risks, as we manage the complexities of tracking and adhering to federal, state, and local regulations. With Astrix, you can rest assured that your workforce is paid accurately and in full compliance with applicable laws, allowing you to focus on driving your core business forward. 

Beyond mitigating compliance risks, Astrix brings decades of expertise in scientific and technical staffing. Our specialized focus on these industries means we understand the unique challenges of managing highly skilled professionals, including navigating complex wage laws and industry-specific requirements. By partnering with Astrix, you gain a trusted staffing partner with the knowledge and experience to manage your workforce efficiently, compliantly, and with precision ensuring your business operates seamlessly in even the most demanding fields. 

Contact us today to learn more!