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SALARY PAYMENT IN United States Dollar (USD, $)
CONTRACT LANGUAGES English
PAYROLL TAX Varies per state
PAYROLL CYCLE Bi-weekly or weekly
TIME TO HIRE 12 hours
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The federal minimum wage in the USA is currently $7.25 per hour. Note that the USA has minimum wage laws at both the federal and state level. Employees working in states that have minimum wage laws are entitled to the higher of the two minimum wages.
Federal minimum wage provisions are covered under the Fair Labor Standards Act (1948) which sets out two forms of coverage: “enterprise coverage” and “individual coverage.”
Enterprise Coverage refers to employees working for enterprises with at least two employees with;
Individual Coverage refers to those employees who don’t qualify for enterprise coverage provided their work regularly involves “interstate commerce”. Essentially, the FLSA covers any individual workers who are “engaged in commerce or in the production of goods for commerce.”
Yes. Of the 50 states that make up the USA; 15 have minimum wages that equal the federal minimum wage, 5 have no minimum wage laws (Alabama, Louisiana, Mississippi, South Carolina, Tennessee), and 30 have minimum wages that are higher than the federal minimum.
| State | Minimum Wage | Effective |
|---|---|---|
| Alaska | $10.85 | 01/01/2023 |
| Arkansas | $11.00 | 01/01/2023 |
| Arizona | $13.85 | 01/01/2023 |
| California | $15.50 | 01/01/2023 |
| Colorado | $13.65 | 01/01/2023 |
| Connecticut | $14.00 | 01/01/2023 |
| Delaware | $11.75 | 01/01/2023 |
| Florida | $11.00 | 01/01/2023 |
| Hawaii | $12.00 | 01/01/2023 |
| Illinois | $13.00 | 01/01/2023 |
| Massachusetts | $15.00 | 01/01/2023 |
| Maryland | $13.25 | 01/01/2023 |
| Maine | $13.80 | 01/01/2023 |
| Michigan | $10.10 | 01/01/2023 |
| Minnesota | $10.59 | 01/01/2023 |
| Missouri | $12.00 | 01/01/2023 |
| Montana | $9.95 | 01/01/2023 |
| Nebraska | $10.50 | 01/01/2023 |
| New Jersey | $14.13 | 01/01/2023 |
| New Mexico | $12.00 | 01/01/2023 |
| Nevada | $10.50 | 01/01/2023 |
| New York | $14.20 | 01/01/2023 |
| Ohio | $10.10 | 01/01/2023 |
| Oregon | $13.50 | 01/01/2023 |
| Rhode Island | $13.00 | 01/01/2023 |
| South Dakota | $10.80 | 01/01/2023 |
| Virginia | $12.00 | 01/01/2023 |
| Vermont | $13.18 | 01/01/2023 |
| Washington | $15.74 | 01/01/2023 |
| West Virginia | $8.75 | 01/01/2023 |
Washington D.C. ($16.50), Guam ($9.25), Puerto Rico ($8.50) & the US Virgin Islands ($10.50) also have higher minimum wage rates that are higher than the federal minimum wage.
The federal minimum wage in the USA has remained unchanged at $7.25 per hour since 2017. In fact, despite political movements such as the Fight for $15 and the Raise the Wage Act, the federal minimum wage in the USA has been set at $7.25 since 2009.
There have been increases to the minimum wage at the state and local levels though. A number of states have passed legislation that gradually increases the minimum wage to $15 and three states (California, Washington, Massachusetts) already have minimum wages above $15.
A number of major cities, including San Francisco, New York City and Seattle have also taken steps to raise their municipal minimum wage to $15 per hour.
| Date | Min. wage, hourly rate (USD) |
|---|---|
| 2009 | 7.25 |
| 2008 | 6.55 |
| 2007 | 5.85 |
| 1997 | 5.15 |
| 1996 | 4.75 |
At the time of writing, Canada’s federal minimum wage of CAD$15.55 is worth $11.56. This makes Canada’s federal minimum wage considerably higher than the federal minimum wage in the USA.
The difference between the USA and Canada’s federal minimum wages is not reflected at the state level. In USD terms, the majority of US states have higher minimum wages than Canadian provinces and territories.
No. As set out in the Fair Labor Standards Act (1948) and equivalent state and local laws, the minimum wage is the same for both US citizens and non-citizens.
Your business can easily hire employees in USA without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
It’s unlikely that skilled employees will accept remuneration packages that effectively pay close to the minimum wage. Most employees earning minimum wage in the USA are employed in service jobs, retail and agriculture.
In such circumstances, the higher minimum wage applies.
Unlike other countries, the USA does not increase its federal minimum wage automatically at set intervals. Instead, The United States Congress must pass a bill which the President then signs into law.
USA – Minimum Wage Over the Years
