Federal minimum wage: $7.25 an hour and who it covers
The federal minimum wage is $7.25 an hour. Congress set it in the Fair Labor Standards Act, and it has not changed since July 24, 2009, the longest period without an increase since the law was passed in 1938.
Contents9 sections
Key takeaways
- The federal minimum wage is $7.25 an hour, in effect since July 24, 2009.1
- It changes only when Congress amends the law; it is not adjusted for inflation.2
- Where a state or city sets a higher minimum wage, the employer must pay the higher rate.3
- Tipped employees can be paid a cash wage of $2.13 an hour if tips make up the rest of $7.25.4
Quick facts
| Rate | $7.25 an hour since July 24, 2009 |
|---|---|
| Tipped cash wage | $2.13 an hour, with a tip credit of up to $5.12 |
| Youth opportunity wage | $4.25 an hour for workers under 20, first 90 days only |
| The law | Fair Labor Standards Act, section 6 (29 U.S.C. 206) |
| Enforced by | U.S. Department of Labor, Wage and Hour Division, 1-866-487-9243 |
Who the federal minimum wage covers
The Fair Labor Standards Act (FLSA) covers most workers in the United States, in two ways.5
- Enterprise coverage. Every employee of a business with at least two employees and at least $500,000 a year in sales or business done is covered. Hospitals, residential care facilities, schools and preschools, and government agencies are covered whatever their revenue.
- Individual coverage. Even when the business is too small for enterprise coverage, an employee is covered if their own work is part of interstate commerce: producing goods that are shipped to another state, regularly making out-of-state calls or transactions, or traveling across state lines for work. Domestic workers such as housekeepers and full-time nannies are also covered.
The law also exempts some jobs from the minimum wage, including bona fide executive, administrative and professional employees paid on a salary basis, outside sales employees and certain seasonal, recreational and small-farm workers. Whether an exemption applies depends on the duties of the job, not its title.
When a state or city rate applies instead
The FLSA sets a floor, not a ceiling. When a state or local law sets a higher minimum wage, the employer must pay the higher rate.3 On October 28, 2026, 30 states and the District of Columbia required more than $7.25 an hour.7 In the rest, $7.25 is the rate most workers are owed, either because the state follows the federal rate or because it has no minimum wage law of its own.
The states where the federal rate is the minimum for most jobs:
- Alabama$7.25
- Georgia$7.25
- Idaho$7.25
- Indiana$7.25
- Iowa$7.25
- Kansas$7.25
- Kentucky$7.25
- Louisiana$7.25
- Mississippi$7.25
- New Hampshire$7.25
- North Carolina$7.25
- North Dakota$7.25
- Oklahoma$7.25
- Pennsylvania$7.25
- South Carolina$7.25
- Tennessee$7.25
- Texas$7.25
- Utah$7.25
- Wisconsin$7.25
- Wyoming$7.25
The state list shows the rate in every state, and the city list covers the cities and counties that set their own.
Tipped employees
An employer can pay a tipped employee, someone who regularly receives more than $30 a month in tips, a cash wage of at least $2.13 an hour and count up to $5.12 an hour of the employee’s tips toward the $7.25 minimum. This is the tip credit. If cash wages plus tips fall short of $7.25 for the workweek, the employer must pay the difference.4 Many states require a higher cash wage, and 7 do not allow a tip credit at all; see the tipped minimum wage guide.
Lower rates allowed by federal law
The FLSA allows a few lower rates, each with strict limits.3
- Youth opportunity wage. Workers under 20 can be paid $4.25 an hour during their first 90 consecutive calendar days with an employer. An employer cannot displace other workers to hire at this rate.6
- Full-time students. With a certificate from the Wage and Hour Division, retail and service businesses, farms, and colleges can pay full-time students at least 85% of the minimum wage, with limits on hours.
- Student-learners. With a certificate, students aged 16 or older in a vocational education program can be paid at least 75% of the minimum wage while enrolled.
- Workers with disabilities. Employers with a section 14(c) certificate can pay a wage based on the worker’s productivity.
State laws can be stricter: several states do not allow these lower rates or set their own. See the youth and training wage guide.
Federal contractors
From 2022, Executive Order 14026 set a higher minimum wage for workers on many federal contracts. It was revoked in March 2025, and the Wage and Hour Division states that it no longer enforces it.8 An older order, Executive Order 13658, still applies to some contracts entered into between January 1, 2015 and January 29, 2022 that have not been renewed or extended since. Under it, covered workers are owed $13.65 an hour, rising to $14.05 on January 6, 2027.9
How the federal rate changes
The $7.25 rate is written into the law itself, so it changes only when Congress passes an amendment and the President signs it. There is no automatic adjustment for inflation.2 The last increase came from the Fair Minimum Wage Act of 2007, which raised the rate in three steps to $7.25 on July 24, 2009.1 Every change since 1938 is listed in the federal minimum wage history.
Where to get help
The U.S. Department of Labor’s Wage and Hour Division enforces the federal minimum wage. You can file a complaint by calling 1-866-487-9243 or through the division’s website, and the law protects workers who complain from retaliation.3 If your state has its own minimum wage law, its labor department also takes claims; the agency is listed on each state page.
Sources
- 1
- 2
- 3
- 4
- 5
- 6
- 7 U.S. Department of Labor, Wage and Hour Division, State Minimum Wage Laws Checked Oct 9, 2026 · Back to text ↑
- 8
- 9
Was this information accurate? Report an error