Minimum Wage by State (2025 Chart & Comparison)

In order to stay in compliance with state minimum wage laws in 2025, it is a must to know about a set of rules that can heavily alter your company’s finances and work environment.

U.S. Minimum Wage by State (2025 Chart)

The Fair Labor Standards Act (FLSA) sets the federal minimum wage, but states can establish higher rates. According to Fox, 2020, 29 states have minimum wages above the federal level.

Since the federal minimum wage per state has been $7.25 since 2009, there is now a major difference between how much people in the highest- and lowest-paying states earn — with some spots paying over $10 more per hour.

Why It Is Important for Businesses: With so many different rules in each state, a company expanding to Washington from Alabama could see their workforce’s wages almost triple, making it more challenging for workers to stay and affecting what happens economically in those regions.

In the minimum wage by state chart, you can see state minimum wages as they were set as of January 1, 2025.

Keep in mind that rates in certain cities and counties may surpass the state minimum, and employers need to follow the highest of those three guidelines.

US State Minimum Wages: 2025

State-by-state minimum wages are changed by states using automatic adjustments based on inflation and decisions from lawmakers.

This makes it possible for wages to keep pace with inflation and economic conditions.

Upcoming Minimum Wage Increases in 2025

State payroll statistics show that many regions set different hourly minimum wages.

There will be significant increases in minimum wage required by the state across the US in 2025, reaching $16.50 in California, $15.00 in Delaware and Rhode Island, and half-year rises are scheduled in Alaska, Florida, and a number of other states.

Such changes matter a lot to workers and employers because they are designed to ease the cost of living and inflation.

In 2022 and onward, a number of states have started using automatic systems tied to the economy, reducing the need for legal changes each year.

Key Trends (2025)

The Bottom Line: Many states in 2025 have reached and even gone beyond the $15 benchmark, while some states are:

• still lower than it
• only at the federal minimum wage.

Delaware, Rhode Island, and Illinois are putting into place a $15 wage, with the new rate to be effective from January 1, 2025.

Tools to Stay Compliant

To track time, handle payroll, and follow the rules, you must use specialized software if you want the minimum wage to be met. Tools help because minimum wage:

• Change from one state to another
• Include details about overtime
• Link to accurate calculation of work hours
• Accumulate information for tipped workers
• Require multiple records.

Software for Keeping Track of Time

The main goal is to log hours worked accurately

• Tracks both the time spent working and breaks on its own
• Delivers accurate numbers needed for payroll purposes
• Ensures detailed documents are kept for protection during any audit.

Important point: Manual timekeeping errors that may result in wage violations are eliminated.

For example: TMetric, Toggl, TimeCamp

TMetric for Accurate Work Time Records

💡Ticking time with TMetric provides accuracy and ensures you handle payroll accurately.

Automation, Compliance, Protection

• TMetric can track exact start/stop times – it reduces the risks of disputes over hours worked
• It calculates break periods, which ensure meal and rest break compliance
• It creates timestamped records to serve as legal documentation during audits
• It prevents "time theft" claims because it contains concrete evidence of work performed.

Cost Savings, Accurate Calculations

• TMetric prevents overpayment
• It excludes incorrectly rounded-up timesheets
• It helps create precise estimates
• It prevents underpayment
• It saves businesses from costly labor violations
• There is no need to spend time on reconciling disputed hours or correcting payroll errors
• It provides data analytics for identifying productivity patterns and calculating staffing costs.

Multi-Location Management

• TMetric tracks employees across different states (it is important in case of varying wage requirements)
• It automatically applies location-specific break rules
• It can adjust overtime calculations by state rules
• It delivers diverse reports for businesses with remote or traveling employees
• It follows compliance standards for any business location.

Payroll Systems

The main goal is to automate wage processing

• They can provide location-based payroll to match state/local requirements
• They can easily cope with 0complex scenarios: overtime, PTO, deductions, and adding bonuses
• Payroll systems generate compliant statements and tax documentation.

Important point: It reduces human error in wage calculations and helps achieve consistent compliance

Examples: Gusto, QuickBooks Payroll, ADP

QuickBooks Payroll for Intelligent Wage Calculations

• Fill out a form, and the service will automatically update the minimum wage for each state and covered cities that have local measures
• Time spent beyond 40 hours in a week is paid at 1.5x, but states like California have their own rules for overtime pay each day – QuickBooks Payroll will consider any changes
• Manages situations such as split shifts, different pay per job position, and commission payouts
• Tips are managed, and staff are confirmed to be meeting the legal minimum wage.

Comprehensive Tax and Compliance Management

• Files federal, state, and local payroll taxes automatically with guaranteed accuracy
• Generates W-2s, 1099s, and other required tax forms at year-end
• Maintains compliance with FLSA, state labor laws, and local ordinances
• Provides audit trails and detailed reporting for labor department investigations

Financial Protection and Support

• Includes penalties and interest coverage if QuickBooks makes a calculation error
• Offers same-day direct deposit to ensure timely wage payments
• Integrates with existing QuickBooks accounting for seamless financial management
• Provides HR support hotline for wage and hour questions.

Labor Law Compliance Tools

The main goal is to monitor compliance and alert on regulations and changes

• Monitoring changes in wage laws as they happen in each jurisdiction
• System reminders for planned changes to the minimum wage
• Announcements regarding new rules about employment.

Important point: It prevents compliance gaps and helps stay ahead of regulatory changes

Examples: Mineral (formerly ThinkHR), Justworks, HR Hero

Justworks for Proactive Compliance Management

• They keep up with wage law changes in every state and city
• Wagescan+ informs users 90 days before any minimum wage increase happens
• Can handle compliance with a wide range of local rules for companies with employees working outside the office
• Updates company policies automatically as new labor laws come into effect.

Risk Mitigation and Cost Control

• Prevents businesses from getting into costly trouble by making sure they know about new rules
• Offers cost savings by including regulatory advice and templates for documents
• Allows access to employment law attorneys when dealing with difficult wage and hour matters
• Gives employers the opportunity to purchase workers' compensation insurance on behalf of their employees at fair prices.

Streamlined HR Operations

• Allows the use of payroll, benefits, compliance, and HR tools together on one platform
• Cares for onboarding, employee unemployment, and a variety of other administrative functions
• Gives each employee access to My Pay, My Taxes, and My Benefits for easy viewing and downloads
• Helps small businesses with complete HR outsourcing using professional employer organization services.

Legal and HR Support Services

The main goal is to guide and provide compliance support

• Getting professional advice from an HR consultant and a lawyer
• Reviewing and preparing for an employment contract audit
• Broad-based compliance management software.

Important point: It provides expert oversight, which reduces liability through professional guidance

Examples: Zenefits, Rippling, LegalZoom HR packages

LegalZoom HR Packages for Expert Legal Protection

• Permits workers to speak with employment law experts about wage and hour matters
• Check the contracts, handbooks, and policies with the law in mind
• Represents employees when a Department of Labor audit or investigation takes place
• Writes and updates documents that follow each state’s rules for employment.

Comprehensive Policy Development

• It creates employee handbooks that follow the right rules for wages, overtime, and breaks
• It designs job descriptions that correctly identify which jobs are exempt and which are not
• Sets clear rules for keeping time and processing payroll to prevent disagreements about wages
• The software modifies policies automatically as labor laws in your jurisdiction change.

Audit Preparation and Defense

• Makes regular reviews within the organization to spot any wage and hour violations
• Assembles all required information for investigations by the regulator
• Represents clients in issues with the EEOC and labor disputes
• Educates managers on the right wage and hour standards to help them avoid making mistakes.

Cost-Effective Legal Access

• Allows you to get unlimited help on employment law for a set monthly fee
• Customers do not have to pay for pricey lawyers for basic compliance issues
• Programs like these cost much less to use than traditional law firms
• Guarantees compensation in case of lawsuits related to the workplace.

Strategic Implementation

Tips for Users: Integrating different tools is the most preferred scenario. Payroll processes benefit from time tracking, policy updates are made based on information from compliance tools, and reliable legal help is provided for complicated cases. Using all these methods together makes it easy to prevent any wage and hour violations.

FAQ