The federal minimum wage is still $7.25 an hour, unchanged since July 2009, but more than 30 states and the District of Columbia require higher pay in 2026. State minimum wage rates by state for 2026 range from roughly $8.75 to $17.95 per hour, with the District of Columbia at the top and several jurisdictions above $15. Many of those state rates rose automatically on January 1 because they are tied to inflation, and more increases are scheduled through the year. Whenever federal, state, and local wage laws all cover you, your employer owes you the highest of the three.
The Federal Floor Is Still $7.25
The Fair Labor Standards Act sets the national minimum wage that covers most private-sector and government employees.1U.S. Department of Labor. Wages and the Fair Labor Standards Act It has been $7.25 per hour since July 24, 2009, the longest stretch without a raise since the minimum wage was created in 1938. Only Congress can change it. A new bill, the Give America a Raise Act, was introduced in the House in February 2026, but like earlier proposals its prospects are uncertain.2Congress.gov. H.R. 7471 – Give America a Raise Act
For most workers, the federal rate is now a fallback rather than a paycheck. If your state or city sets a higher minimum, the $7.25 figure is beside the point.
State Minimum Wage Rates in 2026
As of January 1, 2026, at least 33 states and the District of Columbia have minimum wages above the federal rate.3U.S. Department of Labor. State Minimum Wage Laws Rates run from about $8.75 an hour at the low end to $17.95 in the District of Columbia at the top. Roughly a dozen jurisdictions are now at or above $15, a level that was a fringe proposal ten years ago.
When you are covered by both state and federal law, the higher rate wins.1U.S. Department of Labor. Wages and the Fair Labor Standards Act States get to higher rates in different ways: legislation signed by the governor, voter-approved ballot initiatives, or, in some places, constitutional amendments that make the wage floor harder for future legislatures to roll back.
The Department of Labor publishes a state-by-state table updated at the start of each year, with the current standard rate, the tipped rate, and notes on scheduled increases.3U.S. Department of Labor. State Minimum Wage Laws That is the cleanest place to confirm the exact number for your state.
Why Many States Raise Their Rates Automatically
About 19 states and the District of Columbia now tie their minimum wage to an inflation index, so the rate rises each year without any new legislation. Most use the Consumer Price Index, measuring price changes from one August to the next and applying the adjustment on January 1.
Indexing prevents the kind of long freeze the federal rate has been in. The federal $7.25 buys substantially less today than it did in 2009; a state that indexes its wage avoids that erosion by design. The tradeoff for employers is annual payroll updates, but the increases tend to be small and predictable rather than the big jumps that come after years of no action.
Cities and Counties Can Set Higher Rates Too
Some of the highest minimum wages in the country are set by cities and counties, not states. Local ordinances add a third layer of wage regulation on top of state and federal law. If you work in a city with its own minimum wage, your employer owes you the local rate whenever it is the highest of the three.
Whether a city can set its own wage depends on state preemption law. Roughly half the states have enacted some form of minimum wage preemption, blocking local governments from setting rates above the state floor. In states without preemption, cities have wide latitude to go higher, and many do. The Department of Labor’s table covers state rates but not every local ordinance, so if you are in a city that regulates wages, check with your local labor office as well.
Tipped Employees Follow a Separate Rule
Federal law lets employers pay tipped workers a cash wage as low as $2.13 per hour as long as tips bring the total to at least $7.25.4U.S. Department of Labor. Minimum Wages for Tipped Employees The difference is called the tip credit, capped at $5.12 under federal rules. If tips fall short in a given week, the employer has to make up the gap.
Before taking the tip credit, an employer has to give the worker specific notice, including the cash wage being paid, the amount claimed as tip credit, and the worker’s right to keep all tips except those going into a valid tip pool.5eCFR. Subpart D Tipped Employees Managers and supervisors cannot share in tip pools, and pooled tips must be redistributed within the same pay period.6U.S. Department of Labor. Tip Regulations Under the Fair Labor Standards Act (FLSA)
State rules for tipped work vary widely. Some require the full state minimum wage with no tip credit at all, others follow the $2.13 federal cash wage, and many sit somewhere in between. The Department of Labor’s tipped-employee table lists the cash wage and tip credit for each state.4U.S. Department of Labor. Minimum Wages for Tipped Employees
Workers Who Can Legally Be Paid Less
A few narrow categories can be paid below the standard minimum wage under federal law.
- Workers under age 20 can be paid $4.25 per hour for the first 90 consecutive calendar days of employment. After that, or when they turn 20, the full minimum wage applies.7U.S. Department of Labor. Fact Sheet 32 – Youth Minimum Wage – Fair Labor Standards Act
- Vocational student-learners in approved programs can be paid 75% of the minimum wage during the learning portion of their training.8eCFR. 29 CFR 520.506 – What Is the Subminimum Wage for Student-Learners
- Section 14(c) of the FLSA still allows certificated employers to pay subminimum wages to workers whose disabilities affect productivity for a specific job. A proposal to phase out the program was withdrawn in July 2025, so the certificates remain available, though the number of workers paid under them has fallen sharply over the past two decades.9U.S. Department of Labor. 14(c) Certificate Holders10Federal Register. Employment of Workers With Disabilities Under Section 14(c) of the Fair Labor Standards Act – Withdrawal
Federal Contract Workers Have Their Own Rates
If you work on a federal contract, a separate and higher minimum wage applies, set by executive order. Two rates run in parallel. Executive Order 13658 covers older contracts entered into or renewed before January 30, 2022, at $13.65 per hour as of May 2026, with a $9.55 cash wage for tipped workers.11Federal Register. Minimum Wage for Federal Contracts Covered by Executive Order 13658, Notice of Rate Change in Effect Executive Order 14026 covers contracts entered into or renewed on or after January 30, 2022, at $17.75 per hour as of January 2025, with the rate indexed to inflation.12Federal Register. Minimum Wage for Federal Contracts Covered by Executive Order 14026, Notice of Rate Change in Effect Covered work includes service contracts, Davis-Bacon construction, and concessions on federal property; manufacturing and supply contracts are excluded.13eCFR. Part 23 Increasing the Minimum Wage for Federal Contractors
If You Think You Are Being Underpaid
Employers are required to post an FLSA notice in the workplace that shows the applicable minimum wage.1U.S. Department of Labor. Wages and the Fair Labor Standards Act Compare that rate against your pay stub, and check the state and any local rate that applies to your job.
Workers who have been paid less than the required minimum can recover the back wages plus an equal amount in liquidated damages, roughly doubling what is owed. You can file a complaint with the Wage and Hour Division of the Department of Labor, which investigates and can examine payroll records and interview employees at the workplace, or you can bring a private lawsuit for back pay, liquidated damages, attorney’s fees, and court costs.14U.S. Department of Labor. Fact Sheet 44 – Visits to Employers Employers that repeat or willfully violate the law also face civil penalties, adjusted for inflation each year.15Federal Register. Civil Monetary Penalties – 2026 Adjustment
The filing deadline is strict. You have two years from the date of underpayment to bring a claim under federal law, or three years if the violation was willful.16Office of the Law Revision Counsel. 29 U.S. Code 255 – Statute of Limitations Once the window closes, those wages are gone. If you suspect you are being underpaid, the earlier you act, the more you can recover.