Minimum wage laws are complicated, and they’re constantly changing. If your company has employees in multiple states, keeping up with these updates can be daunting. While some states are on a schedule for annual increases to eventually reach $15 an hour, others still adhere to the federal minimum.
Here’s what you need to know about the federal minimum wages—and the minimum wage rates by state—in 2025.
The federal minimum wage in the United States is $7.25 per hour.
This wage is mandated by the Fair Labor Standards Act (FLSA), which sets standards for wages and overtime pay for most private and public sector employees. These employees are referred to as “covered nonexempt workers.” Provisions of the FLSA apply in states that have not enacted their own minimum wage laws (e.g., Alabama, Louisiana, Mississippi, South Carolina, and Tennessee) or in states where the local law sets a minimum wage below the federal rate (Georgia and Wyoming).
Unlike the minimum wage in many states, the federal minimum wage is not indexed to inflation. This means it doesn’t automatically adjust each year to account for changes in the cost of living. For the federal minimum wage to increase, Congress must act to send legislation to the president to sign into law.
Since the minimum wage floor was introduced at 25 an hour in 1938, lawmakers have approved 22 increases, typically spaced anywhere from one to ten years...
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