Lowest Minimum Wage In The United States – By 2022, the federal minimum wage in the United States will be $7.25 per hour, which is the minimum wage for non-exempt workers. Because federal law takes precedence over state law, federal minimum wage requirements apply to all states across the country. This federal labor law is responsible for ensuring the protection of workers’ rights.
According to the history of the federal minimum wage rates, the minimum hourly requirement has remained unchanged since 2009 . Most minimum wage adjustments are made at the state or municipal level. Despite this trend, workers in certain occupations or situations may be exempt from federal hourly wage requirements.
Lowest Minimum Wage In The United States
As noted, each state has its own minimum wage requirements that are equal to or higher than the federal minimum. So is every worker entitled to less than that? yes already! Tipped workers in the United States are usually exempt from this regulation because they are expected to receive the majority of their income in the form of tips.
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By law, the state adopts its own minimum wage with tips of $2.13 an hour – the counterpart to the federal minimum. To ensure fair treatment of tipped employees, wages and tips must be at least $7.25 an hour. Otherwise, the employer must compensate the employee with a cash wage increase.
Below is the 2022 minimum wage by state map showing the minimum hourly wage for each wage (data collected by the US Department of Labor). For convenience, the map is color-coded to show which states are roughly in the low, middle, and high wage ranges based on distance from the federal minimum. Click here to see the 2022 minimum wage table from low to high.
The data is collected and reported annually by the US Department of Labor, the US Bureau of Labor Statistics and the Current Population Survey. Each recorded salary adjustment and historical trend brings a variety of interesting insights and facts, e.g. demographic factors, economic factors, changes in the labor market, etc.
By 2022, eleven states will raise the minimum wage. Among these states are California, Illinois, Maryland, Delaware, Michigan, Massachusetts, New Jersey, Rhode Island, New Mexico, Vermont and Virginia . To compare the 2022 minimum wage by state map with the 2021 record, see the map created last year.
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The federal minimum wage was last changed in 2008 when it was raised from $6.55 to $7.25 .
Seven states enforce the same minimum wage for tipped and non-tipped employees. The remaining 42 states have lower hourly wages for tipped employees than non-tipped employees . Employers in these states must compensate all employees whose combined wages and tips are less than the federal minimum hourly rate with tips.
Minimum wage increases9 of the 11 states that will raise the minimum in 2022 are the result of automatic annual inflation adjustments (AZ, CO, ME, MN, MT, NY, OH, SD, and WA) .
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Untipped Workers According to the Fair Labor Standards Act, tipped workers are those who regularly receive more than $30 per month in tips. Others are considered non-tipped employees.
Age In 2021, approximately 22.5% of hourly workers paid at or below the federal minimum wage are between the ages of 25 and 34 .
2022 Insights US companies expect an average increase of 3.4% to pay their workers in 2022 . The growth will be higher than in 2021 and 2020.
GenderBack In 1980, approximately 21.6% of female workers were paid hourly at or below the federal minimum wage. The latest data from 2020 show 2% .
The U.s. Ranks 11th In Minimum Wage
Education In 2020, 170,000 workers earning the federal minimum wage or less are reported to lack a high school education . By comparison, in 2020 there will be 453,000 minimum wage workers.
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Switch from employee timesheet templates to hire employee timesheet software to enable your business with employee shift schedules, automated timesheets, digital clocks, team messaging and built-in temp pools. By the standards of other rich countries, the minimum wage in the United States, $7.25 an hour, may seem low. Australia’s minimum wage for full-time working adults is almost $15 today. France is about $12. For almost a year, American fast food workers who demand such pay have been on strike.
But in some ways, the high salary abroad is not as high as it sounds. Reason: cost of living. Melbourne, home to about a fifth of all Australians, is the fourth most expensive city in the world accordingly
Worst And Best Cities For Minimum Wage Earners
Intelligence unit – about 36 percent more expensive than New York. Meanwhile, rent and food on the table in Paris is about 28 percent more expensive than in New York. When it comes to everyday life in the country, money is not what it is in the United States.
Fortunately for us, economists have come up with a concept that allows us to adjust exchange rates to account for local price differences. This is called “purchasing power parity” or PPP. When applied to minimum wages around the world, the difference tends to be quite different. As shown in the chart below, based on 2012 data from the Organization for Economic Co-operation and Development, Australia’s minimum wage is actually closer to $10 when purchasing power is taken into account. France is also down to $10. Both are still bigger than the US, but not quite as exciting. (Scroll to the bottom for a table version of this graph).
So American minimum wage workers can never compare to their counterparts abroad because of the direct exchange rate. However, there are important factors that PPP does not cover in this case – such as health costs. PPP measures prices from an economic perspective, but does not take into account who pays what. So, while McDonald’s Canadian or French employees receive Medicare socialization, American workers must set aside a portion of their salary for the company’s plan, whether or not they receive private insurance (in some cases, Medicaid may be available, and as of 2014, other adults are covered in countries that expanded in Obamacare, but moving numbers).* PPP will not take into account. The same story applies to higher education.
So let’s think about it: If you take purchasing power into account, the minimum wage in the United States is better compared to other rich countries. But only a little.
State And Major Locality Minimum Wage Updates For 2023
*Update Sept. 2, 7:25 p.m.: As several commenters have pointed out, I am not aware that Medicaid is available to at least some minimum wage workers, depending on the state and the exact circumstances. I don’t think it changes the overall score very much, but the fact needs to be mentioned. International Politics & PoliticsImmigration & Migration Race & Ethnicity Religion Generation & Age Gender & LGBTQ Family & Relationships Economy & Work Science Internet & Technology List of Habits Research News & FuMll
The prospect of raising the federal minimum wage, which has been at $7.25 an hour since 2009, appears to be lingering, despite public support for the idea. But the truth is, in recent years, most of the real action on the minimum wage has taken place in states, counties and cities, not on Capitol Hill. Just last November, for example, Florida voters approved Amendment 2, which would raise the state’s minimum wage to $15 by 2026.
Federal law sets a minimum wage of $7.25 an hour for most American workers, but states are free to set higher minimums (and so do some states, cities, and counties). With the push to raise the federal minimum wage blocked again, we want to update our earlier look at state and local minimum wage laws.
Information on minimum wage rates and rules in each state comes primarily from the National Conference of State Legislatures, supplemented by state labor department websites and online versions of all state statutes. We compiled a list of cities and counties with local minimum wage ordinances from the University of California, Berkeley’s Center for Workforce Research and Education and the Economic Policy Institute, then reviewed city and county websites and online versions of their laws.
Most Action To Raise Minimum Wage Is At State And Local Level, Not In Congress
State wage and salary data comes from the federal Bureau of Labor Statistics; District data, when needed, comes from the BLS Quarterly Census of Employment and Pays. Data at the country level are annual averages for 2020; Data at the district level is from the third quarter of 2020, the latest available.
As a practical matter, the federal minimum wage of $7.25 is used in only 21 states, which together account for about 40% of all US workers’ wages and salaries – about 56.5 million people – according to an analysis of state and federal minimum wage laws. Employment data. In 29 other states and the District of Columbia, the minimum wage is higher – in the $8.65 range
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