20 States With the Lowest Minimum Wages

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KEY POINTS

  • Two states, Georgia and Wyoming, have a minimum wage below $7.25 per hour.
  • Five states have not adopted a state minimum wage, while 13 reflect the federal minimum wage.
  • Federal minimum wage law overrides state minimum wage laws if the federal minimum wage is greater than the state minimum wage.

$7.25 isn't the lowest minimum wage in the U.S., technically.

Currently the federal minimum wage is $7.25 per hour. However, states have the power to set their own minimum wage, and many have chosen to do so. As of 2022, 30 states and Washington D.C. have a minimum wage that is higher than the federal minimum. The other 20 states have either adopted the federal minimum wage, have no state minimum wage law, or have minimum wages below the federal minimum wage.

States with minimum wage below federal minimum wage

Two states, Georgia and Wyoming, have a minimum wage below $7.25 per hour. Both Georgia and Wyoming’s minimum wage is $5.15 per hour. However, federal minimum wage law overrides state minimum wage laws if the federal amount is greater than the state's. (The opposite is true if the state amount is higher than the federal.) So those living in Georgia and Wyoming receive the $7.25 hourly rate.

States with no minimum wage

Five states have not adopted a state minimum wage: Alabama, Louisiana, Mississippi, South Carolina, and Tennessee. Similar to Georgia and Wyoming, residents of these five states are subject to the federal minimum wage of $7.25.

States with minimum wage equal to federal minimum wage

13 states have a minimum wage that is equal to the federal minimum wage of $7.25:

  1. Idaho
  2. Indiana
  3. Iowa
  4. Kansas
  5. Kentucky
  6. New Hampshire
  7. North Carolina
  8. North Dakota
  9. Oklahoma
  10. Pennsylvania
  11. Texas
  12. Utah
  13. Wisconsin

High inflation makes it difficult for people to live on current minimum wage earnings. However, there are 17 states (Alaska, Arizona, California, Colorado, Florida, Maine, Minnesota, Missouri, Montana, Nevada, New Jersey, Nevada, New York, Ohio, Oregon, South Dakota, and Washington) and Washington D.C. that have tied their minimum wage increases based on the consumer price index and other formulas. Your state labor office will have the latest information on how much any increases will be.

Minimum wage laws are designed to help workers make ends meet. However, in states with low minimum wages, workers may still struggle with bills and other everyday costs. If you live in one of these states, you may want to consider finding a job that pays more than the minimum wage or even moving to a state with a higher minimum wage. Looking for side hustles, living on a budget, and going back to school may be difficult but are other options that will be worth it in the long run.

If you live in one of the states tied to the federal minimum wage and are working a minimum wage job, you can expect to earn less than workers in other parts of the country. However, the states with lowest minimum wage typically have a lower cost of living compared to states like Washington, Massachusetts, and California, which are states with the highest minimum wage.

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