Minimum Wage
Under the Fair Labor Standards Act (FLSA), covered, non-exempt employees are entitled to a minimum wage of $7.25. The FLSA exempts some employees from both its overtime pay and minimum wage provisions and also exempts some employees from its overtime pay provisions only. Exemptions under the FLSA can be found here.
The U.S. Department of Labor provides many fact sheets to help employers understand the requirements under the FLSA. Some that provide additional information on minimum wage and tipped employees are below:
State and local laws may also mandate a minimum wage and have their own exemptions. When an employee is covered by multiple laws, the employee is entitled to the protections of each law.
Local and state jurisdictional minimum wage rates may change more frequently than the federal minimum wage. Employers should be mindful of increases in minimum wage, including minimum cash wage, to ensure that they are paying their employees correctly. Toast Payroll has populated the system for the calculation of tip makeup and overtime with the state or local rate that may be applicable to many customers. However, you are responsible for verifying that the rate in the system is applicable to your business. Information on how to verify the system minimum wage rate can be found in Toast Payroll: Minimum Wage.
Additional information on minimum wage can be found on local and state government websites or through your complimentary HR toolkit, Mineral.
FLSA - Tipped Employees
As a general rule, under the FLSA, an employer may pay a tipped employee a minimum cash wage (direct wage) of $2.13 per hour if:
That amount plus the tips received equal at least the federal minimum wage,
The employee has been notified of tip credit in advance,
The employee retains all tips (or is subject to an applicable tip pooling arrangement), and
The employee customarily and regularly receives more than $30 in tips per month.
If an employee's tips combined with direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference (tip makeup).
FLSA - Minimum Wage Chart
The chart below contains current minimum wage rates as of 1/1/26. It does not include minimum cash wage, prevailing wages, minimum wages for public employers, or government contractors. It generally does not include industry-specific rates. It does not include exemptions from minimum wage.
Certain states have multiple city, county, and/or local minimum wages. Be sure to find the one that best applies to your situation.
|
Jurisdiction
|
Minimum Wage
|
Resources
|
FEDERAL
|
$7.25
|
|
Alabama
|
Alabama follows federal regulations and has no separate state wage and hour laws
|
|
Alaska
|
$13.00 (effective 7/1/25)
|
|
Arizona - state
|
$15.15 (effective 1/1/26)
|
|
Arizona - Flagstaff
|
$18.35 (effective 1/1/26)
|
|
Arizona - Tucson
|
$15.45 (effective 1/1/26)
|
|
Arkansas
|
$11.00
|
|
California - state
|
$16.90 (effective 1/1/26)
|
|
California - state - fast food workers
|
$20.00
|
|
California - Alameda
|
$17.46 (effective 7/1/25)
| |
California - Belmont
|
$18.95 (effective 1/1/26)
|
|
California - Berkeley
|
$19.18 (effective 7/1/25)
|
|
California - Burlingame
|
$17.86 (effective 1/1/26)
|
|
California - Cupertino
|
$18.70 (effective 1/1/26)
|
|
California - Daly City
|
$17.50 (effective 1/1/26)
|
|
California - East Palo Alto
|
$17.90 (effective 1/1/26)
|
|
California - El Cerrito
|
$18.82 (effective 1/1/26)
| |
California - Emeryville
|
$19.90 (effective 7/1/25)
|
|
California - Foster City
|
$17.85 (effective 1/1/26)
|
|
California - Fremont
|
$17.75 (effective 7/1/25)
|
|
California - Half Moon Bay
|
$17.91 (effective 1/1/26)
|
|
California - Hayward
|
(effective 1/1/26)
Small employers with 25 or fewer employees - $16.90; large employers with 26 or more employees - $17.79
|
|
California - Long Beach
|
(effective 7/1/25)
Hotel workers - $25.00; concessionaire workers at the Long Beach Airport and the Long Beach Convention Center - $18.58
|
|
California - Los Altos
|
$18.70 (effective 1/1/26)
|
|
California - Los Angeles City
|
$17.87 (effective 7/1/25)
|
|
California - Los Angeles County
|
$17.81 (effective 7/1/25)
|
|
California - Malibu
|
$17.27 (effective 7/1/25)
|
|
California - Menlo Park
|
$17.55 (effective 1/1/26)
| |
California - Milpitas
|
$18.20 (effective 7/1/25)
|
|
California - Mountain View
|
$19.70 (effective 1/1/26)
|
|
California - Novato
|
(effective 1/1/26)
Very large businesses with 100 or more employees - $17.73; large businesses with 26-99 employees - $17.46; small businesses with 1-25 employees - $16.90
|
|
California - Oakland
|
(effective 1/1/26)
Minimum wage - $17.34; Minimum wage for hotel workers with health benefits - $18.85; minimum wage for hotel workers without health benefits - $25.14
|
|
California - Palo Alto
|
$18.70 (effective 1/1/26)
|
|
California - Pasadena
|
$18.04 (effective 7/1/25)
|
|
California - Petaluma
|
$18.31 (effective 1/1/26)
|
|
California - Redwood City
|
$18.65 (effective 1/1/26)
|
|
California - Richmond
|
$19.18 (effective 1/1/26)
|
|
California - San Carlos
|
$17.75 (effective 1/1/26)
|
|
California - San Diego City
|
$17.75 (effective 1/1/26)
|
|
California - San Francisco
|
$19.18 (effective 7/1/25)
|
|
California - San Jose
|
$18.45 (effective 1/1/26)
|
|
California - San Leandro
|
Minimum wage determined by the state of California, which on 1/1/26 is $16.90
|
|
California - San Mateo City
|
$18.60 (effective 1/1/26)
|
|
California - San Mateo County Unincorporated
|
$17.95 (effective 1/1/26)
|
|
California - Santa Clara
|
$18.70 (effective 1/1/26)
|
|
California - Santa Monica
|
(effective 7/1/25)
Minimum wage - $17.81; For hotels and businesses operating on hotel property - $22.50
|
|
California - Santa Rosa
|
$18.21 (effective 1/1/26)
|
|
California - Sonoma
|
(effective 1/1/26)
Large employer with 26 or more employees - $18.47; small business with 1-25 employees - $17.38
|
|
California - South San Francisco
|
$18.15 (effective 1/1/26)
|
|
California - Sunnyvale
|
$19.50 (effective 1/1/26)
|
|
California - West Hollywood
|
(effective 1/1/26)
Minimum wage - $20.25; hotel workers - $20.22
|
|
Colorado - state
|
$15.16 (effective 1/1/26)
|
|
Colorado - Boulder City
|
$16.82 (effective 1/1/26)
|
|
Colorado - Unincorporated Boulder County
|
$16.82 (effective 1/1/26)
|
|
Colorado - Denver
|
$19.29 (effective 1/1/26)
|
|
Colorado - Edgewater
|
$18.17 (effective 1/1/26)
|
|
Connecticut
|
$16.94 (effective 1/1/26)
|
|
Delaware
|
$15.00
|
|
District of Columbia
|
$17.95 (effective 7/1/25)
|
|
Florida
|
$13.00
|
|
Georgia
|
$5.15
|
|
Hawaii
|
$16.00 (effective 1/1/26)
|
|
Idaho
|
$7.25
|
|
Illinois - state
|
$15.00
|
|
Illinois - Chicago
|
Employers with 4 or more workers - $16.60 (effective 7/1/25)
|
|
Illinois - Cook County
|
$15.00
| |
Indiana
|
$7.25
|
|
Iowa
|
$7.25
|
|
Kansas
|
$7.25
|
|
Kentucky
|
$7.25
|
|
Louisiana
|
Louisiana has no state minimum wage. Employers covered by the FLSA must pay a minimum wage of $7.25
|
|
Maine - state
|
$15.10 (effective 1/1/26)
|
|
Maine - Portland
|
$16.75 (effective 1/1/26)
|
|
Maine - Rockland
|
$16.00 (effective 1/1/26)
|
|
Maryland - state
|
$15.00
|
|
Maryland - Howard County
|
(effective 1/1/26)
Employers who have 15 or more employees - $16.00; small employers which include food service facilities - $15.50
|
|
Maryland - Montgomery County
|
(effective 7/1/25)
Employers with 10 or less employees - $15.50; employers with 11-50 employees - $16.00; employers with 51 or more employees - $17.65
|
|
Maryland - Prince George County
|
$15.30 (effective 1/1/26)
|
|
Massachusetts
|
$15.00
|
|
Michigan
|
$13.73 (effective 1/1/26)
|
|
Minnesota - state
|
$11.41 (effective 1/1/26)
|
|
Minnesota - Minneapolis
|
$16.37 (effective 1/1/26)
|
|
Minnesota - St. Paul
|
(effective 1/1/26)
Macro and large businesses with 101+ employees - $16.37; small businesses with 6-100 employees - $15.00; micro businesses with 5 or fewer employees - $13.25
|
|
Mississippi
|
Mississippi has no state minimum wage. Employers covered by the FLSA must pay a minimum wage of $7.25
|
|
Missouri
|
$15.00 (effective 1/1/26)
|
|
Montana
|
$10.85 (effective 1/1/26)
|
|
Nebraska
|
$15.00 (effective 1/1/26)
|
|
Nevada
|
$12.00
|
|
New Hampshire
|
Rate cannot be lower than the federal minimum wage, which is $7.25 as of 1/1/26
|
|
New Jersey
|
(effective 1/1/26)
$15.92; for employers with 5 or fewer employees or seasonal employees - $15.23
|
|
New Mexico - state
|
$12.00
|
|
New Mexico - Albuquerque
|
(effective 1/1/26)
$11.85. However, since this is lower than the state's minimum wage, employers covered by the state law must pay $12.00.
| |
New Mexico - Bernalillo County
|
TBA. If this is lower than the state's minimum wage, employers covered by the state law must pay $12.00.
|
|
New Mexico - Las Cruces
|
$13.01 (effective 1/1/26)
|
|
New Mexico - Santa Fe City
|
$15.40 (effective 3/1/26)
$17.50 (effective 1/1/27)
|
|
New Mexico - Santa Fe County
|
$15.40
|
|
New York
|
(effective 1/1/26)
$17.00 in NYC, Long Island, and Westchester. $16.00 elsewhere in the state
|
|
North Carolina
|
$7.25
|
|
North Dakota
|
$7.25
| |
Ohio
|
$11.00 (effective 1/1/26)
|
|
Oklahoma
|
$7.25
|
|
Oregon
|
(effective 7/1/25)
Oregon's minimum wage depends on work location. $16.30 - Portland metro (within the urban growth boundary, including parts of Clackamas, Multnomah, and Washington counties); $15.05 - Standard (Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, Yamhill, and parts of Clackamas, Multnomah, and Washington outside the urban growth boundary); and $14.05 non-urban (Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties)
|
|
Pennsylvania
|
$7.25
|
|
Rhode Island
|
$16.00 (effective 1/1/26)
|
|
South Carolina
|
South Carolina has no minimum wage. Employers covered by the FLSA must pay a minimum wage of $7.25
|
|
South Dakota
|
$11.85 (effective 1/1/26)
|
|
Tennessee
|
Tennessee has no minimum wage. Employers covered by the FLSA must pay a minimum wage of $7.25
|
|
Texas
|
Minimum wage is equal to the federal minimum wage by statute - $7.25
|
|
Utah
|
The state minimum wage is the same as the federal rate, which is $7.25 as of 1/1/26
|
|
Vermont
|
$14.42 (effective 1/1/26)
|
|
Virginia
|
$12.77 (effective 1/1/26)
|
|
Washington - state
|
$17.13 (effective 1/1/26)
|
|
Washington - Bellingham
|
$19.13 (effective 1/1/26)
|
|
Washington - Burien
|
(effective 1/1/26)
Level 1 employers (all employers, including franchisees, that employ 500 or more FTEs in King County or franchisors that employee more than 500 FTEs) - $21.63
Level 2 employers (all employers, including franchisees, that employ 21-499 FTEs in King County) - $20.63
Level 3 employers (all employers that employ 20 or less FTEs in King County) - exempt from ordinance
|
|
Washington - Everett |
(effective 1/1/26)
Large businesses with more than 500 employees - $20.77; other businesses with 15 to 500 employees or annual gross revenue over $2 million - $18.77
| |
Washington - Renton |
(effective 1/1/26)
| |
Washington - SeaTac
|
$20.74 for hospitality and transportation employees (effective 1/1/26)
|
|
Washington - Seattle
|
$21.30 (effective 1/1/26)
|
|
Washington - Tukwila
|
$21.65 (effective 1/1/26)
|
|
Washington - Unincorporated Kings County
|
(effective 1/1/26)
Employers with 500 or more employees - $20.82; employers with 16-499 employees - $19.82; employers with 0-15 employees and gross revenue of $2 million or more - $19.82; employers with 0-15 employees and gross revenue of less than $2 million - $18.32
|
|
West Virginia
|
$8.75
|
|
Wisconsin
|
$7.25
|
|
Wyoming
|
$5.15. However, since this is lower than the federal minimum wage, employers covered by the FLSA must pay a minimum wage of $7.25
|
|
This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for advice.