2021 State and Local Minimum Wages

 In Employees, Human Resources, Payroll, Tax Compliance, Time & Attendance

The federal Fair Labor Standards Act (FLSA) establishes minimum wage and overtime requirements for employers in the private sector and for federal, state, and local governments. The current federal minimum wage is $7.25 per hour. Covered nonexempt employees must receive overtime pay for hours worked over 40 per workweek (any fixed and regularly recurring period of 168 hours, or seven consecutive 24-hour periods) at a rate not less than one and one-half times the regular rate of pay.

Many states and localities also have minimum wage laws. If an employee is covered by more than one minimum wage law, the employee is entitled to the higher minimum wage. Review local minimum wages beginning on page 11 of the chart below.

This chart reflects the current state and local minimum wages in effect as of January 1, 2021, as well as future enacted increases, and will be reviewed midyear for any changes. Review the coverage requirements applicable to states or localities where you conduct business to determine which minimum wage rates apply to your employees. If there is no information listed in the state’s “Coverage” box, then the state minimum wage law generally applies to all employers. If a state does not have a minimum wage law, then employers must comply with the FLSA. Finally, if there is no information in the chart’s “Premium Pay” box, then compliance with the FLSA is also required.

Content provided by Ahola’s HR Support Center.

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