One person works in New York, another in Texas. Both have heard that the federal minimum wage in the USA is $7.25 per hour. Should they receive that amount? Not necessarily. In the USA, the lowest wage is determined not only by federal regulations but often also by the laws of the state and city where the work is performed.
This guide explains the rules as of October 28, 2026. Rates may change, and there are exceptions to many rules. Before making a decision, check the current regulations for your workplace and type of employment.
What is the federal minimum wage?
The federal minimum wage is $7.25 per hour for employees covered by the Fair Labor Standards Act (FLSA) who are not subject to a relevant exemption. It has been at this level since July 24, 2009. This does not mean that every employee in the country can receive exactly that amount. In many places, higher rates apply.
At 40 hours per week, this amounts to $290 gross per week, or $15,080 gross for 52 such weeks, without overtime and breaks in employment. The actual payment to the account may be lower after required deductions. This is a hypothetical calculation, not a promise of full-time employment or a net income estimate.
Federal, state, and city: which rate to apply?
If an employee is covered by multiple minimum wage laws, the more favorable standard for the employee should be applied. A state may establish a higher minimum than the federal government, and in some localities, a higher local rate may also apply. The date of work, industry, and specific rules regarding the employer also matter.
Example: an employee in New York covered by the general state rate should not receive $7.25 just because that is the federal rate. In 2026, the general minimum in the city is $17. In some other parts of New York State, it is $16. The calculation may look different for a tipped employee.
Not every municipality has its own minimum wage. Smaller towns often follow federal and state regulations, but the name of the city or its size is not enough to determine the pay. Check with the state department and the local office responsible for the work address.
Sample rates in 2026
The amounts below show the general hourly minimum for the specified locations, according to sources available at the time of verification. They do not include all exceptions or higher local rates.
- New York: $17 in NYC, Long Island, and Westchester County; $16 in the rest of the state.
- Florida: $15 starting September 30, 2026. Earlier this year, the general rate was $14.
- California: $16.90 according to the state federal table as of July 1, 2026. Some cities and certain industries may require more.
- Texas: $7.25 for employees covered by the relevant minimum. Local or specific requirements for some jobs should be checked separately.
- Washington State: $17.13 according to the federal table as of July 1, 2026; in some cities, the rate may be higher.
- Oregon: as of July 1, 2026, $16.80 in the Portland metropolitan area, $15.55 according to the standard rate, and $14.55 in designated rural counties.
The federal comparative table is helpful, but its status as of July 1, 2026, does not account for subsequent increases in Florida. Therefore, when checking a specific amount, it is advisable to refer to the relevant state office. The District of Columbia is a separate jurisdiction and is not a state.
Are there states without a minimum wage?
Alabama, Louisiana, Mississippi, South Carolina, and Tennessee do not have their own general state minimum wage law. This does not mean that an employer can set any amount without limits. If the employment is subject to the federal FLSA, the relevant federal rules apply, including the general $7.25. In Georgia and Wyoming, there are state rates lower than the federal minimum, but an employee covered by the federal minimum is entitled to the higher federal rate.
The scope of the federal law depends on the circumstances. It covers, among other things, certain businesses and many employees individually engaged in interstate commerce. There are exceptions. Do not assume that a small business is automatically exempt from the regulations.
Tips: why is the pay sometimes $2.13 per hour?
Federal law allows employers under certain conditions to pay tipped employees at least $2.13 per hour and count part of the tips towards the minimum. This is known as tip credit. The total compensation qualifying for this calculation must reach the required minimum, and if tips are insufficient, the employer must make up the difference. They must also meet other conditions, including providing required information about the tip credit.
This is only a federal rule. Some states require a higher direct wage, and some, including California, require the full state minimum from the employer before tips. In New York State, the rules vary, including by employee category and workplace. Nail salon employers cannot use tip credit there.
Read more about tips and bills in the guide Tipping in the USA.
Can a younger worker be paid less?
Federal law allows for a minimum of $4.25 per hour for individuals under 20 years of age for the first 90 consecutive calendar days of employment with a given employer. The period counts from the first day of work, including holidays. It ends earlier when the employee turns 20. An employer cannot replace other employees to take advantage of this rate.
Higher state or local law may exclude the application of this federal exception. There are also separate, limited programs for certain students and other groups. It is not enough to call someone an “intern” to arbitrarily lower their pay.
Working for a daily wage, cash, or on a 1099 form
The form of payment does not determine whether the minimum applies. A person receiving a daily wage, weekly wage, or cash can still be a protected employee under the regulations. It is advisable to record all hours worked and compare gross pay with the appropriate rate, also considering any overtime.
Similarly, the 1099 form, the title “independent contractor,” or a signed agreement do not automatically determine proper classification. The actual working conditions and applicable regulations matter. If a company treats a person as an independent contractor but in practice, they work as an employee, it is worth asking the labor office or a lawyer for an assessment of the situation.
Is overtime paid at a higher rate?
The federal FLSA generally requires covered employees who are not exempt from this obligation to be paid at least 1.5 times their regular rate of pay for hours worked over 40 in a workweek. The regular rate is not always the same as the base rate: in certain cases, other components of compensation are also considered. State regulations may provide additional protection, and some professions are subject to specific rules.
Example without tips and other components: at a rate of $17 and 45 hours in one week, 40 hours yield $680, and five overtime hours at $25.50 yield $127.50. The total is $807.50 gross. An employer cannot simply average 45 hours in one week and 35 in another to avoid federal overtime for the first week.
What time worked must be paid?
Not only customer service time may count. Depending on the circumstances, required training, preparation time, cleanup after a shift, and travel between work locations during the day may be paid. The ordinary commute from home to work is generally not considered work time under federal law. Short breaks, if provided by the employer, are usually paid; actual meal breaks may be unpaid. Details matter.
If you were asked to come in 15 minutes before your shift to open the establishment and prepare the workspace, record that time. Also, if the system shows the start of the shift later than the actual start of duties. Keep schedules, messages, and your own time records.
What to do if your pay seems too low?
- Check the date, work address, industry, number of hours, and the rate applicable to that situation. Compare federal, state, and local regulations.
- Keep pay stubs, schedules, transfers, messages, and your own hour records. Note the employer's details and payment method.
- Ask for an explanation of the calculation if it is safe for you to do so. You can also contact the labor office directly.
- For federal matters, contact the Wage and Hour Division at 1-866-487-9243 or through the complaint reporting website. Also, check the possibility of reporting to the state office. In New York, the state Department of Labor provides the number 1-888-469-7365.
Complaints to the federal Wage and Hour Division are confidential, and retaliation for exercising protected employee rights is prohibited. The office indicates that it assists with wage matters regardless of immigration status. If you are concerned about the implications for your immigration situation, also talk to a trusted worker organization or immigration lawyer. Do not assume that every case will end the same way.
Where to check the current rate?
Start with your state labor office and, if it has its own regulations, the city or county office. The federal summary facilitates comparison, but check the date of its update and exceptions. Employees in New York State can use the state rate determination tool. For questions about your own situation, the appropriate office or lawyer can provide the best answers after reviewing the documents.
Sources and further reading
- U.S. Department of Labor: questions about federal minimum wage and exceptions
- U.S. Department of Labor: summary of state rates, as of July 1, 2026
- U.S. Department of Labor: state regulations and exceptions
- New York State Department of Labor: rates and search tool
- New York State: rates effective in 2026
- Florida Department of Commerce: minimum wage in Florida
- U.S. Department of Labor: rates for tipped employees
- U.S. Department of Labor: federal tip credit rules
- U.S. Department of Labor: rate for young workers
- U.S. Department of Labor: overtime
- U.S. Department of Labor: hours worked
- U.S. Department of Labor: filing a complaint
- U.S. Department of Labor: protection against retaliation
- New York Attorney General: wage rights in Polish
- New York State: wage rules in nail salons
This article is for informational purposes only and does not replace individual legal advice. Regulations, exceptions, and rates may change.
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