Minimum Wages in USA: An In-depth Analysis

Every country in the world comprises a mandatory minimum wage that must be paid to the workers and employees. Irrespective of the role or domain, employers paying below the defined wage can attract legal proceedings against them.

The USA is a vast country that thrives on immigration. Hence, the country has a set of stringent minimum wage guidelines which differ by state. Professionals looking to pursue part-time or full-time opportunities in the country need to understand the concept of minimum wages in the USA.

Due to the decentralised system of governance in the country, the minimum wage value might be higher in some states and lower in others. Furthermore, the rules regarding minimum wage differ according to several additional factors. There are laws governing each worker, whether the employee is a student, an adult, or a young person under 20 years of age. 

Structure of Minimum Wages in USA

The question ‘what is the minimum wage in the USA per month?’ has no direct answer. For one, the wages for covered and nonexempt workers can be divided into two types - The federal minimum wage and the State minimum wage.

Federal Minimum Wage

The US Department of Labor is in charge of defining the Federal minimum wage in America. However, it is implemented and enforced by the department’s ‘Wage and Hour Division’ to prevent any exploitation of workers and employees. 

The Fair Labor Standards Act (also known as the FLSA) is the law that sets the minimum wage in the USA. This act highlights other essential elements like overtime pay eligibility and record keeping. 

USD 7.25 per hour is the current Federal minimum wage.

State Minimum Wage

Although the Federal minimum wage applies to all states in America, several regions have their own figures. The lowest figures belong to Wisconsin and Georgia, with USD 5.15 per hour, while the highest is USD 14.49 per hour in Washington. 

The Federal minimum wage automatically applies to states without a minimum wage provision. It also overrules the provisions where the state’s set minimum wage is lower than the federal wage, qualifying employees within that state's boundaries for a federal minimum wage.

While the minimum wage has been constant since 2009, it is not standard for all types of employees. For instance, certain variations exist for young workers under 20. For the first 90 days of their employment, they are paid only USD 4.25 per hour. Upon completing 90 consecutive days, an employer must pay them the minimum wage defined by the US Department of Labour.

Top 5 USA States with Highest Minimum Wage

According to the latest acquired minimum wage reports from all the US states, the top five regions with lucrative payments are as follows:

On the other hand, states like Alabama, Louisiana, Mississippi, Tennessee, and South Carolina have no predetermined minimum state wage provisions, hence employers subject to the Fair Labor Standards Act will have to pay according to the federal minimum wage rates.

Top 5 Highest-Paid Professions in USA

States with higher minimum wage in the USA per hour are also known to present several job opportunities with attractive pay packages. Some of the highest-paid roles in the US, along with their average annual salaries, are as follows:

The medical profession is synonymous with higher pay, with several specialists ranked among the top earners in the US. It is followed by airline pilots, who earn USD 202,180 per year on average.