Currently, under the federal Fair Labor Standards Act (FLSA), minimum wage is $7.25 per hour with nonexempt employees to receive overtime pay after working 40 hours per workweek. However, states created exclusions to offer various wage rates under individual state regulations, which causes a variation in federal and state wages.
In light of the recent controversy regarding minimum wages, many states have taken the initiative to raise their state’s minimum wage, while others continue to abide by the federal wage.
States that continue to offer the federal minimum wage include:
States with the Highest Minimum Wage
In an attempt to counter cost of living expenses, some states have adopted higher minimum wage rates than the rest of the country. In addition, there will be further increases to the states’ minimum wages in 2016. Currently, the highest paying states are:
District of Columbia- $9.50
New York- $8.75
Rhode Island- $9.00
States Determining Wages by Employees
Some states base minimum wage on the number of employees a company hires. States using this practice include:
Georgia- $5.15 (6 or more employees with certain exclusions)
Illinois- $8.25 (4 or more employees, not considering family members)
Michigan- $8.15 (2 or more employees)
Nebraska- $8.00 (4 or more employees)
Vermont- $9.15 (2 or more employees)
Virginia- $7.25 (4 or more employees)
West Virginia- $8.00 (6 or more employees at one location)
States Determining Wages by Revenue
In addition to the number of employees, gross annual revenue is used in some states to determine the state’s wage. These states include:
Minnesota- $8.00 ($500,000+) or $6.50 (Less than $500,000)
Montana- $8.05 ($110,000+)
Ohio- $8.10 ($297,000+) or $7.25 (Less than $297,000)
Oklahoma- $7.25 ($100,000 and 10+ employees)
States with Minimum Wage Provisions
Other states have more specific exemptions that determine minimum wage. The state exemptions can include the number of hours worked, monthly income, and specific industries. States with wage provisions include:
Colorado- $8.23 ($5.21 tipped employees.)
Hawaii- $7.75 unless over $2,000 is earned monthly
Missouri- $7.65 (exceptions for retail and services earning less than $500,00 annually.)
Nevada- $7.25 (with benefits) $8.25 (without benefits.)
New Jersey- $8.38
New Mexico- $7.50
South Dakota- $8.50
Most states currently have a plan of action in place to gradually increase minimum wage over the course of the next couple of years, which may involve raising the federal minimum wage in an effort to combat poverty.
“Montana’s Minimum Wage to Increase” Montana.gov
“Minimum Wage” Colorado Department of Labor and Employment
“Minimum Wage” Department of Labor
“2015 Minimum Wage by State” National Conference of State Legislature
“2015 State and Federal Minimum Wages” Think HR
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This article was originally published by ThinkHR and is republished with permission.