When a state minimum wage is higher than the federal minimum wage, the state rate controls and your employer must pay it. Federal law does not override the state law, and the state law does not override federal law. Both apply at the same time, and you are entitled to whichever rate is higher. The same rule works in the other direction: if your state has no minimum wage or sets one below $7.25, the federal rate applies to any worker the Fair Labor Standards Act covers.
Both Laws Apply at Once
The FLSA was written to be a floor, not a ceiling. Section 218(a) says that nothing in the federal law excuses noncompliance with any state or local law setting a higher minimum wage or a shorter workweek, and it bars employers from using the federal law to justify cutting pay that already exceeds $7.25.1Justia Law. United States Code Title 29 Chapter 8 – Sec 218 Relation to Other Laws
So the question isn’t really which law wins. Both do. The worker keeps the higher number.
How to Figure Out Your Rate
Start with three numbers: the federal minimum, your state minimum, and any city or county minimum where you actually work. The highest of the three is what your employer owes you per hour.
The federal rate is $7.25 per hour and has been since July 24, 2009.2U.S. Department of Labor. History of Federal Minimum Wage Rates Under the Fair Labor Standards Act More than 30 states and territories now require more. As of January 2026, the District of Columbia leads at $17.95, with Washington at $17.13, Connecticut at $16.94, and California at $16.90.3U.S. Department of Labor. State Minimum Wage Laws Many cities and counties layer their own higher rates on top of the state figure, so two workers in the same state can be entitled to different minimums depending on which side of a city line they clock in on.
Some states index their minimum wage to inflation and adjust it every January without any new legislation. If you live in one of those states, check the current rate at the start of each year.
Remote Work
For remote employees, the minimum wage that applies is set by where you physically perform the work, not where your employer is headquartered. If you work from home in a state with a $15.00 minimum for a company based in a $7.25 state, your employer owes you $15.00. Two employees doing identical jobs for the same company can be entitled to different minimums based only on their location.
When the Federal $7.25 Is Your Rate
Five states have no state minimum wage law at all: Alabama, Louisiana, Mississippi, South Carolina, and Tennessee. Georgia and Wyoming have state minimums of $5.15, below the federal rate. In all seven, any worker the FLSA covers is entitled to $7.25.3U.S. Department of Labor. State Minimum Wage Laws
The only workers who can legally earn less than $7.25 are those in narrow FLSA-exempt categories who also work in a state without its own minimum wage or with one set below the federal floor.
Where the Highest-Rate Analysis Shifts
A handful of worker categories don’t fit the standard analysis cleanly, either because federal law allows a lower rate or because minimum wage rules don’t apply to them at all. State law often changes the picture too, and the highest-rate-wins principle still governs when it does.
Tipped Employees
Federal law lets employers pay tipped workers a direct cash wage as low as $2.13 per hour, as long as tips bring total hourly earnings to at least $7.25. If tips fall short, the employer covers the difference.4U.S. Department of Labor. Fact Sheet 15 – Tipped Employees Under the Fair Labor Standards Act State rules vary sharply. Alaska, California, Minnesota, Nevada, Oregon, and Washington require the full state minimum before tips. About 18 states use the federal $2.13 floor, and many others set something in between.5U.S. Department of Labor. Minimum Wages for Tipped Employees
Workers Under 20
Employers may pay a youth minimum of $4.25 per hour to workers under 20 during their first 90 consecutive calendar days on the job. The full minimum applies after that period ends or when the worker turns 20, whichever comes first.6U.S. Department of Labor. Fact Sheet 32 – Youth Minimum Wage Fair Labor Standards Act
Full-Time Students
Full-time students in retail, service, agriculture, or at their own university can be paid 85% of the applicable minimum wage if the employer holds a special certificate from the Department of Labor. Hours are capped at 20 per week during school and 40 per week during breaks.7U.S. Department of Labor. Fair Labor Standards Act Advisor – Full-Time Student Program
Independent Contractors
The FLSA protects employees, not independent contractors. The Department of Labor uses an economic reality test with six factors, looking at things like how much control the employer exercises, whether the worker can profit or lose money based on their own decisions, and whether the working relationship is permanent.8U.S. Department of Labor. Fact Sheet 13 – Employment Relationship Under the Fair Labor Standards Act
The label doesn’t decide it. Being paid on a 1099, signing a contractor agreement, or holding a certain title does not make you a contractor. If you depend on one company for your work and that company controls how you do it, you are likely an employee entitled to minimum wage no matter what your paperwork says.
Salaried Exempt Employees
Executive, administrative, and professional employees are exempt from minimum wage and overtime if they earn at least $684 per week ($35,568 per year) and meet specific job-duty tests. A 2024 rule that would have raised this threshold was struck down, so the 2019 figure still controls.9U.S. Department of Labor. Earnings Thresholds for the Executive, Administrative, and Professional Exemptions Some states set higher salary thresholds, and the more protective rule applies.
If You’re Being Paid Less Than the Rate That Applies to You
You have two ways to recover unpaid wages, and you can use either or both.
Complaint With the Wage and Hour Division
File a complaint with the U.S. Department of Labor’s Wage and Hour Division by calling 1-866-487-9243 or filing online. Complaints are confidential, and retaliation against you for filing is itself illegal.10U.S. Department of Labor. How to File a Complaint
Private Lawsuit
You can also sue in federal or state court. If you win, the employer owes the unpaid wages plus an equal amount in liquidated damages, which doubles the recovery, and the court must award reasonable attorney’s fees.11Office of the Law Revision Counsel. 29 USC 216 – Penalties
Deadlines
Federal claims have a two-year deadline, extended to three years if the violation was willful, meaning the employer knew it was breaking the law or showed reckless disregard.12Office of the Law Revision Counsel. 29 USC 255 – Statute of Limitations State deadlines can be longer, so a state-law claim may reach further back than a federal one. Don’t wait to find out. Once the clock runs, the older weeks of underpayment are gone.