Minimum wage rates rise annually in many states and localities, so it’s essential to stay aware of when these increases take effect to ensure payroll and HR compliance. Failure to pay employees at least the state minimum wage can lead to significant penalties for wage and hour violations.
With the new year approaching, now is the time to review minimum wage rate increases by state for 2025. Be sure to review if and when your state’s minimum wage is increasing by checking our 2025 minimum wage chart at the end of this post.
What is the Federal Minimum Wage Rate?
The current federal minimum wage rate is $7.25 per hour. This rate applies to employees covered by the Fair Labor Standards Act (FLSA) – which is the vast majority of workers in the U.S.
Which States Have No Minimum Wage Rate?
Unlike state minimum wages, the federal minimum wage is set by the federal government. While most states have minimum wage rates that are higher than the federal minimum, there are seven states that either have a state minimum wage set lower than the federal minimum wage or do not have a state minimum wage at all. Therefore, the federal minimum wage of $7.25 applies in those states, which are Alabama, Georgia, Louisiana, Mississippi, South Carolina, Tennessee, and Wyoming.
Which States Have Minimum Wage Rate Increases in 2025?
Even if your state did not technically announce a new minimum wage rate for 2025, some states have their minimum wage rate indexed to inflation, which triggers an automatic increase in the state minimum wage. Review the below chart to find out which states have minimum wage rate increases in 2025.
What is the Minimum Wage Rate in Each State for 2025?
The below information reflects minimum wage rates set at the state level. Please be aware that your particular city or county may set minimum wage rates that differ from the state level, and that your particular state, city, or county may have increases set for later in 2025 which will be noted next to the anticipated rate if applicable. Please also note the below reflects the minimum wage for non-tipped employees.
| State | 2024 | 2025 |
| Alabama | $7.25 | $7.25 |
| *Alaska | $11.73 | Annual increases indexed to inflation. There is a ballot measure pending which would increase the minimum wage to $15/hr. by 2027. If it passes, on July 1, 2025, the min wage would increase to $13/hr.; on July 1, 2026, it would increase to $14/hr.; and on July 1, 2027, it would be $15/hr. |
| *Arizona | $14.35 | $14.70 Effective January 1, 2025 |
| Arkansas | $11.00 | $11.00 |
| California | $16.00 | $16.50 Effective January 1, 2025 |
| *Colorado | $14.42 | $14.81 effective January 1, 2025 pending adoption of 2025 PAYCALC |
| *Connecticut | $15.69 | $16.35 effective January 1, 2025 |
| Delaware | $13.25 | $15.00 effective January 1, 2025 |
| *District of Columbia | $17.50 | |
| Florida | $13.00 | $14.00 effective September 30, 2025 |
| Georgia | $7.25 | $7.25 |
| Hawaii | $14.00 | $14.00 through 2025; $16.00 effective January 1, 2026 |
| Idaho | $7.25 | $7.25 |
| Illinois | $14.00 | $15.00 effective January 1, 2025 |
| Indiana | $7.25 | $7.25 |
| Iowa | $7.25 | $7.25 |
| Kansas | $7.25 | $7.25 |
| Kentucky | $7.25 | $7.25 |
| Louisiana | $7.25 | $7.25 |
| *Maine | $14.15 | $14.65 effective January 1, 2025 |
| Maryland | $15.00 | $15.00 |
| Massachusetts | $15.00 | $15.00 |
| *Michigan | $10.33 | $10.56 effective January 1-February 20, 2025; $12.48 effective February 21, 2025 |
| *Minnesota | $10.85 | $11.13 effective January 1, 2025 (for all employers regardless of size) |
| Mississippi | $7.25 | $7.25 |
| *Missouri | $12.30 | Annual increases indexed to inflation. There is a ballot measure pending which would increase the minimum wage to $13.25 by January 1, 2025, if passed. |
| *Montana | $10.30 | $10.55 effective January 1, 2025 |
| *Nebraska | $12.00 | $13.50 effective January 1, 2025 |
| Nevada | $12.00 | $12.00 (ballot measure setting minimum wage at $12.00 removed future increased based on CPI and an employer’s ability to pay a minimum wage of $1.00 less her hour if an employer offered certain health benefits to nonexempt employees) |
| New Hampshire | $7.25 | $7.25 |
| New Jersey** | $15.13 | $15.49 effective January 1, 2025 |
| New Mexico | $12.00 | $12.00 |
| New York*** | $15.00 | $15.50 effective January 1, 2025 |
| North Carolina | $7.25 | $7.25 |
| North Dakota | $7.25 | $7.25 |
| *Ohio | $10.45 | $10.70 effective January 1, 2025 (for employers earning less than $394k, they shall pay their employees no less than the federal minimum wage of $7.25) |
| Oklahoma | $7.25 | $7.25 |
| Oregon**** | $14.70 | $14.70 through June 30, 2025 (effective July 1, 2025, this rate will be adjusted annually based on the increase – if any – to the CPI US city average for all urban consumers during March of the prior year through March of the current year, with any increase rounded to nearest five cents) |
| Pennsylvania | $7.25 | $7.25 |
| Puerto Rico | $10.50 | $10.50 |
| Rhode Island | $14.00 | $15.00 effective January 1, 2025 |
| South Carolina | $7.25 | $7.25 |
| *South Dakota | $11.20 | $11.50 effective January 1, 2025 |
| Tennessee | $7.25 | $7.25 |
| Texas | $7.25 | $7.25 |
| Utah | $7.25 | $7.25 |
| *Vermont | $13.67 | $14.01 effective January 1, 2025 |
| *Virginia | $12.00 | $12.41 effective January 1, 2025 |
| *Washington | $16.28 | $16.66 effective January 1, 2025 |
| West Virginia | $8.75 | $8.75 |
| Wisconsin | $7.25 | $7.25 |
| Wyoming | $7.25 | $7.25 |
*Annual indexing.
** NEW JERSEY: Listed rate is for most employers in New Jersey. The minimum wage rate for employees of seasonal and small employers will increase to $14.53/hr. on January 1, 2025. These employers will see gradual increases to the minimum wage until 2028 so as to minimize the impact on small businesses. The minimum wage for agricultural workers will increase to $13.40/hr. and that for long-term care facility direct care staff will increase to $18.49/hr., also effective January 1, 2025. For more information click here.
*** NEW YORK: The state minimum wage is scheduled to increase by another $0.50 effective January 1, 2026. Beginning in 2027, the minimum wage will increase annually based on a three-year moving average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region.
**** OREGON: Listed rate is the standard state wage of $14.70 per hour. The minimum wage in the Portland Metro Area is $15.45 per hour through June 30, 2025, and the minimum wage in Nonurban counties is $13.70 per hour through June 30, 2025. The Portland Metro minimum wage must be $1.25 over the standard; the Nonurban counties wage must be $1.00 below the standard.
Disclaimer: The information contained herein is not intended to be construed as legal advice, nor should it be relied on as such. Employers should closely monitor the rules and regulations specific to their jurisdiction(s) and should seek advice from counsel relative to their rights and responsibilities.