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Previous Updates
Since 2009, the federal minimum wage has held steady at $7.25 per hour. However, many states and municipalities enforce higher minimum wages for non-exempt employees. For 2026, in addition to D.C., thirty states have higher minimum wages than federal law. With the new year on the horizon, several locations have scheduled increases in minimum wage due to factors like inflation, new legislation, and voter-approved initiatives.
Click below for details on the upcoming January 1, 2026, minimum wage adjustments:
Employers should also be mindful of varying state requirements for exempt employee minimum salaries. At the federal level, employees may be exempt from earning overtime, with some exceptions, if they:
- Earn at least $684 per week; and
- Are paid on a salary basis; and
- Perform exempt job duties.
If a state’s minimum salary threshold exceeds the federal requirement, employers must comply with the higher state standard. See below for a summary of upcoming minimum-salary changes effective January 1, 2026.
California
- State law ties the exempt salary threshold to twice the state minimum wage for a 40-hour workweek.
- On January 1, 2026, the state minimum wage will increase to $16.90 per hour and accordingly the salary threshold for most executive/administrative/professional exemptions will rise to $1,352 per week ($70,304 per year).
- Effective January 1, 2026, the minimum pay for overtime exempt computer professionals as well as physicians and surgeons will increase per an annual inflation adjustment required by state statute (click on the links to view more).
Colorado
- Employees qualified for the executive, administrative, and professional exemptions must be paid at least $1,111.23 per week beginning on January 1, 2026.
Maine
- Maine’s exempt salary threshold is scheduled to increase to $871.16 per week ($45,300 per year) effective January 1, 2026.
New York
- For NYC and Nassau, Suffolk, Westchester counties: weekly threshold increases to $1,275 per week ($66,300 per year) on January 1, 2026.
- For the remainder of the state: weekly threshold increases to $1,199.10 per week ($62,353.20 per year) on January 1, 2026.
Washington
- Effective January 1, 2026 the weekly salary minimum for exempt employees will increase to $1,541.70 per week ($80,168.40 per year) per state rule (2.25 × the new minimum wage).
- Note: This threshold applies regardless of employer size (although earlier versions differentiated by size) and must be met for exempt classification under state law.
Summary
- As noted, the federal salary-level test for exemption under the FLSA remains at $684 per week for standard EAP exemptions in 2026.
- Because many states set higher thresholds, employers must check both federal and state regulations and apply whichever is more protective of the employee.
- Employers in multistate operations should consider aligning with the highest applicable threshold to simplify compliance.
Minimum Wage Changes for July 1, 2025
Many states and municipalities have minimum wage requirements. The federal minimum wage is $7.25 per hour. Some industries may have higher minimum wages. Federal contractors have their own employee minimum wage. When there is a difference between rates that could apply, an employer must pay the minimum wage that benefits their non-exempt employee more (the higher rate).
To help ensure that the minimum wage keeps pace with the rising cost of living, many states and municipalities adjust (or will adjust) their minimum wage rates annually. Others adjust their minimum wage rates periodically through legislation or ballot initiatives.
Click below for a view of state and local changes to the hourly minimum wage:
Minimum Wage Updates
Since 2009, the federal minimum wage has held steady at $7.25 per hour. However, many states and municipalities enforce higher minimum wages for nonexempt employees. With the new year on the horizon, several of these locations have scheduled increases in minimum wage due to factors like inflation, new legislation, and voter-approved initiatives.
Click below for details on the upcoming January 1, 2025 minimum wage adjustments:
Employers should also be mindful of varying state requirements for exempt employee minimum salaries. At the federal level, employees may be exempt from earning overtime, with some exceptions, if they:
- Earn at least $684 per week;
- Are paid on a salary basis; and
- Perform exempt job duties.
If a state’s minimum salary threshold exceeds the federal requirement, employers must comply with the higher state standard. See below for a summary of upcoming minimum salary changes.
Alaska
Alaska’s minimum salary is scheduled to increase on January 1, 2025 based on inflation. The current minimum salary is $938.40 per week and the new amount for January 1st will be $952.80.
California
Exempt employees must be paid at least twice the state minimum hourly wage based on a 40-hour workweek. With the hourly wage increasing to $16.50 on January 1, 2025, the new exempt minimum salary will be $1,320 per week.
Certain covered health care facilities must pay covered exempt health care employees no less than 150 percent of the health care worker minimum wage or the standard 200 percent of the minimum wage (as described here), whichever is greater. Facilities scheduled to increase their minimum wage on January 1, 2025 include health care facilities run by small, medium, and large counties; the new minimum salary ranges from $1,320-$1,380 per week.
Effective January 1, 2025, the minimum pay for overtime exempt computer professionals as well as physicians and surgeons will increase per an annual inflation adjustment required by state statute (click on the links to view more).
Colorado
Employees qualified for the executive, administrative, and professional exemptions must be paid at least $1,086.25 per week beginning on January 1, 2025.
Maine
Maine’s minimum salary is scheduled to increase on January 1, 2025 based on inflation. The current minimum salary is $844 per week and the new amount for January 1st is $845.19.
New York
To be classified as exempt from New York's overtime requirements, executive and administrative employees must meet minimum salary requirements and satisfy certain duties tests. On January 1, 2025, the minimum salary required for the executive and administrative exemptions will increase as follows:
- NYC and Nassau, Suffolk, and Westchester Counties: $1,237.50 per week
- Remainder of the State: $1,161.65 per week
Washington
On January 1, 2025, the salary minimum for exempt executive, administrative, and professional employees will increase to $1,332.80 per week for small employers (50 or fewer employees) and $1,499.40 per week for large employers (more than 50 employees).
Minimum Wage Changes for July 1, 2024
Many states and municipalities have minimum wage requirements. The federal minimum wage is $7.25 per hour. Some industries may have higher minimum wages. Federal contractors have their own employee minimum wage. When there is a difference between rates that could apply, an employer must pay the minimum wage that benefits their non-exempt employee more (the higher rate).
To help ensure that the minimum wage keeps pace with the rising cost of living, many states and municipalities adjust (or will adjust) their minimum wage rates annually. Others adjust their minimum wage rates periodically through legislation or ballot initiatives.
Click below for a view of July 1, 2024 state and local changes to the hourly minimum wage:
In addition on July 1, 2024, on the federal level, with few exceptions, to be exempt from overtime an employee must (a) be paid at least $844 per week, and (b) be paid on a salary basis, and also (c) perform exempt job duties. A few states (such as CA, CO, NY, WA, and AK) have higher minimums than federal so remember to be aware of requirements in your jurisdiction. Reach out for guidance as needed.
Many states and municipalities have minimum wage requirements. The federal minimum wage is $7.25 per hour, and an employer must pay the higher (federal, state, municipal) minimum wage to their non-exempt employee.
To help ensure that the minimum wage keeps pace with the rising cost of living, many states and municipalities adjust (or will adjust) their minimum wage rates annually. Others adjust their minimum wage rates periodically through legislation or ballot initiatives.
To help ensure that the minimum wage keeps pace with the rising cost of living, many states and municipalities adjust (or will adjust) their minimum wage rates annually. Others adjust their minimum wage rates periodically through legislation or ballot initiatives.
Click below for a view of January 1, 2024 changes:
On the federal level, with few exceptions, to be exempt from overtime an employee must (a) be paid at least $684 per week, and (b) be paid on a salary basis, and also (c) perform exempt job duties. When there is a difference between federal and state employers must pay the higher rate.
Read further below to see a summary of upcoming known state minimum wage increases for exempt employees. NOTE: The U.S. DOL has proposed a new overtime rule, that would, if finalized on the federal level, impact the information below.
California
In California, exempt employees must meet certain salary and duties tests, and must be paid at least twice the state minimum hourly wage based on a 40-hour week. The state's minimum wage is scheduled to increase on January 1, 2024. For the administrative and professional, and executive exemptions under state law, the minimum weekly salary increases from $1,240.00 to $1,280.00.
Effective January 1, 2024, the minimum pay for overtime exempt computer professionals as well as physicians and surgeons will increase per an annual inflation adjustment required by state statute (click on the links to view more).
Colorado
On January 1, 2024, the minimum salary required to qualify for the executive/supervisor, administrative, and professional exemptions under state law increases to $1,057.69 per week. In Colorado, employees in highly technical computer-related occupations must receive at least the lesser of the applicable salary noted above, or hourly pay in 2024 that has not been published yet.
Maine
The minimum salary required for administrative, professional, and executive employee’s exemptions under state law will increase to $816.35 per week, or $42,450.20 per year on January 1, 2024.
New York
To be classified as exempt from New York's overtime requirements, executive and administrative employees must meet minimum salary requirements and satisfy certain duties tests. On January 1, 2024 minimum salary required for the executive and administrative exemptions will increase as follows:
- NYC and Nassau, Suffolk, and Westchester Counties: $1,200.00 per week
- Remainder of the State: $1,124.20 per week
Washington
Effective January 1, 2024, the minimum salary required for the executive, administrative, and professional exemptions under state law is $1,302.40 per week for all employers. For exempt computer professionals who are paid by the hour the minimum hourly rate is $56.98 per hour.
The minimum salary for administrative, professional, and executive exemptions in Alaska will increase to $938.40 per week January 1, 2024. Oregon exempt minimum wage will be adjusted for inflation on July 1, 2024.
In some states, executive, administrative, or professional employees are exempt from state overtime requirements, but not exempt from state minimum wage requirements, so they must earn at least the applicable minimum wage for each hour worked in a workweek, and on January 1, 2024 the minimum wage in some of these states will increase: Arizona, Colorado, Illinois, New Jersey, and South Dakota. Outside sales employees are not exempt from state minimum wage requirements in a few states, including Arizona where minimum wage will increase on January 1, 2024.
To qualify under the FLSA’s 7(i) overtime exemption, the regular rate of pay for an employee of a retail or service establishment must exceed one-and-a-half times the federal minimum wage, and more than half the employee’s compensation for a period (not less than one month) must be commissions on goods or services. In the following states with January 1, 2024 rate changes, the 7(i) type exemption requires – in part – an employee’s pay to equal or exceed one-and-a-half times the state minimum wage: California, Colorado, Minnesota, New York and Washington.
New York home healthcare workers will receive an increase in minimum wage January 1, 2024. Click here to learn more. California healthcare workers will have minimum wage increases starting next summer. And beginning in April next year, California minimum wage for fast-food workers will increase to $20.00 per hour.
Federal Contractor employee minimum wage will increase to $17.20 per hour on January 1, 2024. This applies to both non-tipped AND tipped workers, removing the lower wage for tipped workers. This applies to federal contracts renewed, extended, or entered into on or after January 30, 2022. **Please note a recent district court decision struck down this executive order and it will not be enforced for contractors and sub-contractors in Texas, Louisiana, or Mississippi at this time.
Many states and municipalities have minimum wage requirements. The federal minimum wage is $7.25 per hour, and an employer must pay the higher (federal, state, municipal) minimum wage to their non-exempt employee.
To help ensure that the minimum wage keeps pace with the rising cost of living, many states and municipalities adjust (or will adjust) their minimum wage rates annually. Others adjust their minimum wage rates periodically through legislation or ballot initiatives.
Click here for a view of the July 1, 2023 changes.
Many states and municipalities have minimum wage requirements. The federal minimum wage is $7.25 per hour and an employer must pay the higher (federal, state, municipal) minimum wage to their non-exempt employee.
To help ensure that the minimum wage keeps pace with the rising cost of living, many states and municipalities adjust (or will adjust) their minimum wage rates annually. Others adjust their minimum wage rates periodically through legislation or ballot initiatives.
Click here for a minimum wage chart.
On the federal level, with few exceptions, to be exempt from overtime an employee must (a) be paid at least $684 per week, (b) be paid on a salary basis, and also (c) perform exempt job duties. The federal Fair Labor Standards Act (FLSA) and certain state laws set minimum salary levels for overtime-exempt executive, administrative, and professional employees. Employers covered by the FLSA must pay whichever salary level - whether federal or that of the state in which their employees are working - is higher to remain eligible for an exemption.
Because the FLSA and many state laws use the workweek as the standard for determining whether an employee is entitled to overtime, the minimum salary level for overtime-exempt employees is listed as a dollar amount that must be paid each week.
Read further below to see the states that have minimum wage requirements higher than the federal $684 salary per week.
Many states and municipalities have minimum wage requirements. An employer must pay the highest rate that applies. For example, if an employer is subject to a local ordinance that sets a minimum wage rate higher than the state and/or federal minimum wage rate, it must pay nonexempt employees the higher local wage. Conversely, if an employer operates in a state that does not have a minimum wage law or that has a minimum wage lower than the federal minimum wage, it must pay nonexempt employees the federal minimum wage of $7.25 if it is covered by the federal Fair Labor Standards Act (FLSA).
To help ensure that the minimum wage keeps pace with the rising cost of living, many states and municipalities adjust (or will adjust) their minimum wage rates annually. Others adjust their minimum wage rates periodically through legislation or ballot initiatives.
This chart sets forth the state minimum wage rates for all 50 states plus the District of Columbia. It also covers selected local minimum wage ordinances that apply to most or all employees who work within a particular jurisdiction, in contrast to ordinances that apply only to specific types of employers (such as those in Long Beach, California and SeaTac, Washington) and to prevailing wage or living wage ordinances that apply only to employees of local governments and the contractors they hire.
In states and localities that permit employers to claim a tip credit, minimum cash wage and maximum tip credit are also listed.
