What is the Federal Minimum Wage in the US?
Under the Fair Labor Standards Act (FLSA), the federal minimum wage became $7.25/hr. It is the lowest amount required to be paid to hourly workers all across the USA. Nonetheless, many states have their own minimum wage laws with relevant exceptions that apply under certain circumstances, e.g tipped employees, full-time students, etc. Click here to compare how the Canadian minimum wage legislation differs from that of the US.
2021 Minimum Wage by State Map.
Below is the 2021 minimum wage by state map depicting the minimum wage hourly rates within each geographical region (data gathered from the US Department of Labor). Some states appear to have a considerably higher minimum wage compared to the federal minimum or other states. The map was color-coded based on states that have lower, medium, or higher minimum hourly rates. Click here if you want to view the low-to-high 2021 minimum wage table.
The data regarding minimum wage laws reported yearly by the US Department of Labor, the US Bureau of Labor Statistics, and the Current Population Survey give us many insights and highlights of statistics describing the state and developments of labor laws. Conveniently, these data include many interesting facts which can give us a better understanding of external factors on the labor market, e.g. the ongoing COVID-19 pandemic taking effect in 2020.
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DID YOU KNOW?
The federal minimum wage has remained at $7.25/hr since 2009 [2].
In 2020, The highest percentage of hourly workers earning the federal minimum wage and below are employed in hospitality [3]. For many of these workers, tips are the main source of earnings. Federal law and some state laws allow tipped employees to be paid less presuming tips bring up their pay to the required minimum [4].
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Low to High 2021 Minimum Wage by State [1]
Low Minimum Wage
Medium Minimum Wage
High Minimum Wage
Sources
[1] State Minimum Wage Laws, US Department of Labor
[2] History of Federal Minimum Wage Rates Under the Fair Labor Standards Act
[3] Characteristics of Minimum Wage Workers
[4] Minimum Wages for Tipped Employees
[5] State Minimum Wages – Highlights
[6] Twenty-six States where the Minimum Wage is Going Up in 2021
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