Career Planning Succeeding at Work Pay & Getting a Raise Federal and State Minimum Wage Rates By Alison Doyle Alison Doyle Facebook Twitter Website Alison Doyle is one of the nation’s foremost career experts and has counseled both students and corporations on hiring practices. She has given hundreds of interviews on the topic for outlets including The New York Times, BBC News, and LinkedIn. Alison founded CareerToolBelt.com and has been an expert in the field for more than 20 years. learn about our editorial policies Updated on December 1, 2021 In This Article View All In This Article Federal Minimum Wage Minimum Wage for Federal Contracts Exemptions From Minimum Wage State Minimum Wage Rates Minimum Wage Rates for 2022 Cities / Counties With Higher Wages Photo: RyanJLane / Getty Images The minimum wage rate is the lowest hourly pay that can be awarded to workers, also known as a pay floor. The Fair Labor Standards Act (FLSA) determines the minimum wage for employees in private and public sectors, in both Federal and State governments. Under the FLSA, non-exempt employees must be paid the minimum wage or higher. Federal Minimum Wage The federal minimum wage in 2022 is $7.25 per hour and has not increased since July 2009. However, some states, cities, and counties have a higher minimum wage rate. Note When the state, city, or county minimum wage rate is higher than the federal rate, employers are required to pay workers the higher amount. Minimum Wage for Federal Contract Workers Effective January 1, 2022, the minimum wage rate, which generally must be paid to workers performing work on or in connection with covered federal contracts, is $11.25 per hour. Additionally, effective January 1, 2022, tipped employees performing work on or in connection with covered federal contracts generally must be paid a minimum wage of $7.90 per hour. Covered contracts that are entered into, renewed, or extended on or after January 30, 2022, will generally be subject to the minimum wage rate of $15 per hour established by Executive Order 14026. Exemptions From Minimum Wage Some employees are exempt from federal minimum wage requirements, such as those who are not protected by the Fair Labor Standards Act. Tipped employees such as restaurant servers, for example, can be paid at a lower rate than minimum wage. State Minimum Wage Rates Some states set a minimum wage rate that is higher than the federal minimum. As of August 2021, 29 states and D.C. have a minimum wage higher than the federal minimum wage, including Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, Ohio, Oregon, Rhode Island, South Dakota, Vermont, Virginia, Washington, Washington D.C., and West Virginia. Minimum Wage Rates for 2022 Listed by State The minimum wage across the country varies from the federally mandated minimum of $7.25 per hour in many states to as high as $15.00 per hour in California for employers with over 26 employees in 2022. To get the minimum wage for your state: select from the drop-down menu or click on the map on the U.S. Department of Labor's State Minimum Wage Law page. Cities and Counties With Higher Minimum Wages There are 45 localities that have adopted minimum wages above their state minimum wage, including cities and counties in Alabama, Arizona, California, Colorado, Illinois, Maryland, Minnesota, New Mexico, New York, Oregon, and Washington. Note Minimum wage rates may change during the calendar year. Check with your state department of labor for rates and wages specific to your location. Key Takeaways Many states have minimum wage rates higher than the federal minimum.Some city/county/state government employers and companies have higher minimum wage rates than the state minimum.In some states, a separate minimum wage has been set for small employers, and there may be other exceptions to the standard rate.Many companies have set a minimum wage for their employees that is higher than the federal rate. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. U.S. Department of Labor. "Wages and the Fair Labor Standards Act." Accessed Dec. 1, 2021. U.S. Department of Labor. "Minimum Wage." Accessed Dec. 1, 2021. U.S. Department of Labor. "US Department of Labor Announces Annual Update to Current Minimum Hourly Wage Rate for Federal Contract Workers." Accessed Dec. 1, 2021. Department of Labor. "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)." Accessed Dec. 1, 2021. The Economic Policy Institute. "Minimum Wage Tracker." Accessed Dec. 1, 2021. U.S. Department of Labor. "Consolidated Minimum Wage Table." Accessed Dec. 1, 2021. CA.gov. "Minimum Wage." Accessed Sept. 15, 2021.