Minimum wage in 2025 by state: Complete guide

A proper understanding of minimum wage requirements is crucial for HR managers who want to stay compliant with federal and state (and in some cases, local) mandates.

Under the Fair Labor Standards Act, the Department of Labor sets a baseline federal minimum wage, but states are free to adopt a higher minimum wage if they see fit. Because labor conditions, gross revenues, and industries vary from one region to another, employers must navigate a patchwork of minimum wage laws, local minimum rules, and potential exemptions. Failing to follow the correct wage and hour guidelines can lead to penalties and can negatively affect workers, who rely on fair compensation for their hours worked.

In this guide, we will:

• Define the 2025 federal minimum wage and discuss how often it changes
• Offer a detailed look at each state’s minimum wage in 2025—including tipped wages
• Identify 21 states that will see minimum wage increases in 2025
• Provide best practices for employers with multi-state operations
• Answer frequently asked questions related to state minimum wage mandates, overtime pay, subminimum rates, and more

Whether you operate in one state or multiple, run a California fast food business (where special minimum wage rules apply), or qualify for a special exemption, this guide will help you remain compliant with the latest labor laws and make sure your workers receive the correct pay for their hours worked.

What is the federal minimum wage? 

The federal minimum wage sets a nationwide floor for the wage rate that must be paid to most workers. Established under the Fair Labor Standards Act, the current federal minimum wage applies to a vast majority of employers in the United States. The Department of Labor is in charge of enforcing these guidelines.

For 2025, the federal minimum wage remains at $7.25 per hour. While Congress could pass legislation to raise this hourly wage, no official change has been enacted at the federal level for years, leaving many workers subject to a federal baseline that has not changed since 2009.

However, state minimum wages often exceed this federal minimum wage, and some local jurisdictions implement even higher minimum wage rates to account for cost-of-living factors. This means employers must stay vigilant and follow the highest applicable minimum wage laws, whether that’s the federal, state, or local minimum.

Some exemptions allow for a subminimum wage for certain categories of workers, such as student learners or employees with certain types of disabilities. The Department of Labor oversees exemptions to make sure hours worked under a subminimum rate meet strict criteria. However, if your business is operating in states with their own unique rules, especially regarding a subminimum wage, you’re generally required to defer to whichever standard benefits workers more—whether it’s a federal mandate or a state minimum wage requirement.

How often does the federal minimum wage increase?

The federal minimum wage can only be changed through Congressional action. Despite inflation and changing labor market conditions, the federal minimum wage has remained at $7.25 per hour since 2009. Since then, the Department of Labor has not seen a new federal statute enacted to raise the federal minimum wage; though periodic legislative efforts surface, they haven’t advanced.

In some countries, the minimum wage is raised automatically on a schedule or based on formulas tied to average wages or inflation. Under the Fair Labor Standards Act, there is no automatic formula that increases the federal rate based on metrics like inflation or gross revenues. However, these types of minimum wage rising mechanisms can exist at the state or local minimum level.

Some states tie their minimum wage to the Consumer Price Index, which ensures the minimum wage rises or adjusts every year. Others adjust their wage rates at intervals that legislators deem necessary. Because of these variations, employers must carefully track changes in state minimum wages.

Minimum wage by State in 2025

Below is a chart showing each state’s minimum wage for 2025, as well as tipped hourly wages. 

Note that some states do not allow a lower tipped wage, while others adhere to the federal tipped rate. Always confirm with the Department of Labor and your local labor laws for the most up-to-date information, as local minimum rates may change, and minimum wages in certain cities might exceed the statewide base.

States that increased the minimum wage in 2025 

A total of 21 states have minimum wage increases taking effect in 2025. Each of these states either has legislation indexing their hourly wage to inflation or has passed new laws mandating a higher minimum wage than they had in 2024. Below is a snapshot of each of these states, along with how much their minimum wage went up since 2024:

Alaska

2024 rate: $11.73

2025 rate: $11.91

Increase: $0.18

Arizona

2024 rate: $14.35

2025 rate: $14.70

Increase: $0.35

Local minimum wage increases

Flagstaff: $17.40 to $17.85

Tucson: $14.35 to $15.00

California

2024 rate: $16.00

2025 rate: $16.50

Increase: $0.50

Local minimum wage increases

Belmont: $17.35 to $18.30

Burlingame: $17.03 to $17.48

Cupertino: $17.75 to $18.20

Daly City: $16.62 to $17.07
East Palo Alto: $17.00 to $17.45

El Cerrito: $17.92 to $18.34

Foster City: $17.00 to $17.40

Half Moon Bay: $17.01 to $17.47

Hayward: $16.00 to $16.50 (25 or fewer employees)

$16.90 to $17.36 (26 or more employees)

Los Altos: $17.75 to $18.20

Menlo Park: $16.70 to $17.10

Mountain View: $18.75 to $19.20

Novato: $16.04 to $16.50 (25 or fewer employees)

$16.60 to $17.00 (26-99 employees)

$16.86 to $17.27 (100+ employees)

Oakland: $16.50 to $16.89 

Palo Alto: $17.80 to $18.20

Petaluma: $17.45 to $17.97

Redwood City: $17.70 to $18.20

Richmond: $17.20 to $17.77

San Carlos: $16.87 to $17.32

San Diego: $16.85 to $17.25

San Jose: $17.55 to $17.95

San Mateo: $17.35 to $17.95

San Mateo County (unincorporated): $17.06 to $17.46 

Santa Clara: $17.75 to $18.20

Santa Rosa: $17.45 to $17.87

Sonoma: $16.56 to $16.96 (25 or fewer employees)

$17.60 to $18.02 (26 or more employees)

South San Francisco: $17.25 to $17.70

Sunnyvale: $18.55 to $19.00

West Hollywood: $19.08 to $19.65

Colorado

2024 rate: $14.42

2025 rate: $14.81

Increase: $0.39

Local minimum wage increases

Boulder: $15.57 (new local minimum wage)

Boulder County (unincorporated): $15.69 to $16.57

Denver: $18.29 to $18.81

Edgewater: $15.02 to $16.52 

Connecticut

2024 rate: $15.69

2025 rate: $16.35

Increase: $0.66

Delaware

2024 rate: $13.25

2025 rate: $15.00

Increase: $1.75

Florida

2024 rate: $13.00

2025 rate: $14.00

Increase: $1.00

Illinois

2024 rate: $14.00

2025 rate: $15.00

Increase: $1.00

Maine

2024 rate: $14.15

2025 rate: $14.65

Increase: $0.50

Local minimum wage increases

Portland: $15.00 to $15.50

Rockland: $15.00 to $15.38

Maryland

2024 rate: $14.00

2025 rate: $15.00

Increase: $1.00

Local minimum wage increases

Howard County: $15.00 to $16.00

Michigan

2024 rate: $10.33

2025 rate: $10.56 (effective Jan. 1)

$12.48 (effective Feb. 21)

Increase: $0.23 (effective Jan. 1)

$1.92 (effective Feb. 21)

Minnesota

2024 rate: $10.85

2025 rate: $11.13

Increase: $0.28

Local minimum wage increases

St. Paul: $12.25 to $13.25 (five or fewer employees)

$14.00 to $15.00 (six to 100 employees)

Missouri

2024 rate: $12.30

2025 rate: $13.75

Increase: $1.45

Montana

2024 rate: $10.30

2025 rate: $10.55

Increase: $0.25

Nebraska

2024 rate: $12.00

2025 rate: $13.50

Increase: $1.50

Nevada

2024 rate: $11.25

2025 rate: $12.00

Increase: $0.75

New Jersey

2024 rate: $15.13

2025 rate: $15.49

Increase: $0.36

New York

2024 rate: $15.00

2025 rate: $15.50

Increase: $0.50

Local minimum wage increases

New York City: $16.00 to $16.50

Long Island & Westchester County: $16.00 to $16.50

Ohio

2024 rate: $10.45 for employers with annual gross receipts of $385,000 or more

2025 rate: $10.70 for employers with annual gross receipts of $394,000 or more

Increase: 0.25

Oregon

2024 rate: $14.70

2025 rate: TBD (Oregon's minimum wage rates go into effect July 1 each year)

Increase: TBD

Rhode Island

2024 rate: $14.00

2025 rate: $15.00

Increase: $1.00

South Dakota

2024 rate: $11.20

2025 rate: $11.50

Increase: $0.30

Vermont

2024 rate: $13.67

2025 rate: $14.01

Increase: $0.34

Virginia

2024 rate: $12.00

2025 rate: $12.41

Increase: $0.41

Washington

2024 rate: $16.28

2025 rate: $16.66

Increase: $0.38

Local minimum wage increases

Bellingham: $17.28 to $17.66

King County (unincorporated): $16.28 to $20.29 (500 or more employees)

Renton: $16.28 to $18.29 (15 to 500 employees worldwide)

$16.28 to $20.29 (fewer than 15 employees and over $2 million of annual gross revenue in Renton)

Seattle: $19.97 to $20.76

SeaTac: $19.71 to $20.17 (Hospitality and transportation employees)

$19.71 to $20.10 (15 to 500 employees)

Tukwila: $19.29 to $20.10 (15-500 employees worldwide or over $2 million of annual gross revenue in Tukwila)

$20.29 to $21.10 (More than 500 employees worldwide and certain franchisees)

Minimum wage for businesses operating in multiple states 

When your company spans various states, minimum wage obligations get complicated. You’ll likely encounter different local minimum rates, subminimum pay structures, and overtime guidelines. Here are some key points for employers with multi-state operations:

1. Follow the highest applicable rate. If the federal minimum wage is $7.25 per hour, but your state minimum wage rate  is $11.00 per hour, you must pay the higher minimum wage. And if a major city has a local minimum requiring $15.00 per hour, that local rule takes priority for employees working there.
2. Consider overtime rules. Overtime pay typically kicks in when workers go beyond 40 hours worked a week. The Fair Labor Standards Act requires at least time-and-a-half pay for overtime, but you may be required to pay more based on the employee’s circumstances, especially if it’s a holiday. And some states have daily overtime rules, so check each jurisdiction’s labor laws.
3. Watch out for unique local ordinances. Certain places, such as the Portland metro area, New York City, and a number of California cities and counties, maintain local minimum wages above their states' baselines. Always confirm the correct hourly wage so that you remain compliant and workers are paid accurately.
4. Monitor gross revenue thresholds. Some states have multiple wage tiers based on an employer’s annual gross revenues. If your business crosses certain income thresholds, you might need to pay a higher minimum wage.
5. Keep updated on subminimum wages and exemptions. Industries with certain exemptions or specialized categories—like teen training wages or certificates for special rates for workers with disabilities—may have alternate hourly rates under wage and hour rules. Always verify the proper subminimum wage structures and make sure you’re following them correctly under Fair Labor Standards Act and Department of Labor guidelines.

Minimum wage best practices for employers

Staying on top of ever-changing minimum wage mandates, especially if you’re balancing federal, state, and local minimum wage laws, can be challenging. Below are several best practices for HR teams and managers:

1. Consider industry-specific wage requirements

Some employers in specific sectors (for example, California fast food restaurants, bars, hotels, or other hospitality establishments) may need to comply with unique labor mandates. Pay close attention to industry regulations, as they often overlap with general minimum wage laws yet impose more stringent requirements.

2. Rely on payroll software to improve accuracy 

Modern payroll systems help ensure consistent compliance with the Fair Labor Standards Act, the Department of Labor’s rules, and state minimum wage laws. By automating hourly calculations, overtime pay differentials, and subminimum wage provisions, you can reduce human error and make sure your workers are paid correctly for all hours worked.

It’s important to look for a payroll solution that monitors compliance for you—your software should check for changes in minimum wage laws and other regulations and apply them to your workforce automatically, mitigating your risk of infractions that could result in costly penalties.

3. Regularly audit payroll systems 

Audits help identify lapses in compliance, particularly if your rates vary due to a workforce distributed across state lines. Conduct frequent checks to confirm that employees’ hourly wages align with the federal minimum wage, the relevant state minimum wage, any higher minimum wages required locally, and that you are properly handling overtime calculations.

Simplify minimum wage compliance with Rippling 

If you want payroll so powerful it runs itself, you want Rippling.

Rippling offers full-service payroll built on top of a single source of truth for employee data. That means your employee data isn’t tied to one specific app—it’s the same across payroll, time and attendance, onboarding, performance management, and any other apps you use within our unified platform.

What does that mean for you and your team? For starters, you have a single source of truth for up-to-the-minute employee information. It also means that your team doesn’t have to reenter information across systems when an employee gets promoted or moves to a different city to work remotely. From changing security permissions to updating PTO policies to changing wages to stay compliant in a new state, Rippling triggers automatic updates to employee information in a single flow. This is especially beneficial for small businesses. It allows you to do more with less—less money, less headcount, and less time. And all with a 100% error-free guarantee.

With Rippling, you can: 

• Pay employees and contractors in the same platform
• Manage time and attendance natively 
• Run unlimited off-cycle pay runs at no extra cost 
• Set up multiple pay schedules, pay rates, and pay types in just a few clicks 
• Add recurring reimbursements (like cell phone payments, gym memberships, etc.) that are automatically paid out every pay period, monthly, or at whatever interval you choose
• Automatically calculate prorated pay runs for new or promoted employees 
• Manage all currency conversions, including payroll adjustments 
• Automatically calculate overtime for every country 
• Make changes after submitting payroll

FAQs on minimum wage by state

Below are some frequently asked questions that many employers and HR professionals have about minimum wage laws in the US:

Are there different minimum wage rates for small businesses?

Yes. Certain states and cities tie minimum wage tiers to the size of the business based on gross revenues or number of employees. Examples of this include New Jersey, Chicago, and St. Paul, Minnesota.

Can states lower their minimum wage below the federal level?

Technically, some states like Georgia and Wyoming have base hourly rates under the federal minimum wage, but if a business is subject to the Fair Labor Standards Act, the federal minimum wage of $7.25 per hour prevails. States cannot enforce a minimum wage that’s lower than the federal minimum wage for covered workers.

Do tipped employees have a different minimum wage?

Yes. Under federal regulations, tipped employees may earn a separate tipped wage (often $2.13 per hour) if their tips bring them up to at least the federal minimum wage. However, many states mandate a higher minimum wage or prohibit a lower tipped rate, to make sure workers keep a guaranteed hourly base.

Are minimum wage rates adjusted for inflation?

In many states, yes. Though the federal rate stays at $7.25 unless Congress acts, several state minimum wage laws include annual indexing for inflation, resulting in regular minimum wage raises.

Will the minimum wage get a federal pay raise in 2025?

At the time of writing, no confirmed federal legislation has passed to guarantee a 2025 federal minimum wage increase, so $7.25 per hour remains. However, check the Department of Labor’s announcements and congressional news in case new laws are passed.

What is the minimum wage in California in 2025?

California is known for having a higher minimum wage than the federal minimum wage. Exact amounts can vary by region (e.g., certain cities or counties), so look to the latest state and local directives for 2025.

What is the minimum wage in Arizona in 2025?

Arizona typically adjusts its rate annually due to indexing. In 2025, the state minimum wage will likely be higher than it was in 2024, offering more protection for workers.

What is the minimum wage in Texas in 2025?

Texas aligns with the federal minimum wage of $7.25 per hour and doesn’t currently index for inflation. Check whether local ordinances in larger cities modify that hourly wage.

This blog is based on information available to Rippling as of February 13, 2025.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.