Bookkeeping

The table below lists the current prevailing 2023 minimum wage rates for every state in the United States. Click any state for details about the minimum wage, exemptions, and other state labor laws. The Fair Labor Standards Act (FLSA) is the federal law that established the minimum wage, which is $7.25 per hour in 2023. Individual states, cities, and localities may pass different minimum wage requirements as long as the rate is higher than the federal minimum wage rate. Our primary source for this analysis was the Wage and Hour Division of the U.S. Labor Department, which enforces the Fair Labor Standards Act and other federal labor laws.

In the model just presented, the minimum wage always increases unemployment. This result does not necessarily hold when the search effort of workers is endogenous. Many states exclude very small businesses, such as those with fewer than five employees or those with gross annual revenue below a specified threshold. Many also contain a variety of smaller occupational exclusions and in some cases, exclusions for seasonal and part-time youth workers.

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Therefore, bot activity that doesn’t conform to BLS usage policy is prohibited. The FLSA does not address nonproduction cash bonuses, payments that minimum wages are not production-based. These bonuses are generally a matter of agreement between an employer and an employee (or the employee’s representative).

• Critics argue that companies, not the government, should decide how much employees should be paid and that a minimum wage does not always boost the spending power of a population and can instead lead to higher unemployment.
• The New Hampshire minimum wage equals the federal minimum wage when set below the federal rate.
• We also offer free educational seminars to employers doing business in New York State.
• The two states with the lowest minimum wage are Georgia and Wyoming, both sitting at $5.15; however, employers in Georgia and Wyoming that are subject to the Fair Labor Standards Act must still pay the $7.25 Federal minimum wage.
• That’s why more and more people are speaking up, pushing back against corporations, and joining together to fight for their labor rights.
• In summer 2023, 19 states and localities implemented minimum wage increases based on state, local, or municipal laws that already set the minimum wage higher than the federal standard.

The South Korean government enacted the Minimum Wage Act on December 31, 1986. At this time the economy was booming,[204] and the minimum wage set by the government was less than 30 percent of that of real workers. The Minister of Employment and Labor in Korea asks the Minimum Wage Commission to review the minimum wage by March 31 every year. The Minimum Wage Commission must submit the minimum wage bill within 90 days after the request has been received by the 27 committee members.

List of Minimum Wage Rates by State 2023

The SMI can be revised semi-annually if the government’s predictions about the consumer price index are not met. The amount set is a minimum wage, so it can be exceeded by a collective agreement or individual agreement with the company. The revision of the SMI does not affect the structure or amount of professional salaries being paid to workers when they are superior to the established minimum wage.

Efficiency wages are the level of wages paid to workers above the minimum wage in order to retain a skilled and efficient workforce. Efficiency wage theory posits that an employer must pay its workers highly enough that workers are incentivized to be productive and that highly skilled workers do not quit. Workers under 20 years of age may be paid $4.25 per hour by federal law until they pass a three-month probationary period.