Quick Answer: How Many States Have Higher Minimum Wage Than Federal?

Do states with higher minimum wage have higher unemployment?

Although the studies had a wide range of results, they concluded that the “preponderance of the evidence” indicated that a higher minimum wage does increase unemployment..

What state has lowest minimum wage?

State2020 Minimum Wage2021 Minimum WageAlabama$7.25 (Federal, no state minimum)$7.25 (Federal, no state minimum)Alaska$10.19$10.34Arizona$12.00$12.15Arkansas$10.00$11.0047 more rows•Dec 24, 2020

Who sets federal minimum wage?

The federal minimum wage is regulated by the Fair Labor Standards Act (FLSA) and enforced by the U.S. Department of Labor. Although the federal minimum wage rate is subject to change, it has not increased since 2009. The current federal minimum wage is $7.25 per hour.

Why is there a federal minimum wage?

The purpose of the minimum wage was to stabilize the post-depression economy and protect the workers in the labor force. The minimum wage was designed to create a minimum standard of living to protect the health and well-being of employees.

Is $15 an hour a livable wage?

One recent study shows $15 an hour isn’t enough to secure affordable housing in most U.S. states. Nationally, someone would need to make $17.90 an hour to rent a one-bedroom apartment or $22.10 an hour to cover a two-bedroom home, according to analysis from the National Low Income Housing Coalition.

What states have higher minimum wage than federal?

As of January 2018, there were 29 states with a minimum wage higher than the federal minimum. Washington D.C. and New York City have the highest minimum wage at $15.00 per hour while California and Washington have the highest state minimum wage at $13.00 per hour, while Massachusetts follows at $12.75 per hour.

Is minimum wage based on where you live or work?

A: Minimum wages are typically based on where the employee performs work. Therefore, if the applicable minimum wage where the employees work is $11.00 per hour, you must generally pay them at least that rate.

Is there a difference between federal and state minimum wage?

The federal minimum wage for covered nonexempt employees is $7.25 per hour. Many states also have minimum wage laws. In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages.

Who does federal minimum wage apply to?

The federal minimum wage applies to workers who have positions with enterprises that qualify for coverage under the Fair Labor Standards Act. These organizations and businesses must employ at least two people and meet one of two additional qualifying standards, according to the U.S. Department of Labor.

Do states have to pay federal minimum wage?

Most employers must pay their workers at least the federal minimum wage. … Each state is also free to impose its own minimum wage (and many do). In addition, several cities and counties have passed “living wage” laws, which may set an even higher minimum wage.

Why is raising minimum wage a bad idea?

The potential downside is that a higher minimum wage may discourage firms from employing the low-wage, low-skill workers that minimum wages are intended to help. … Research findings are not unanimous, but especially for the US, evidence suggests that minimum wages reduce the jobs available to low-skill workers.

What are the disadvantages of raising minimum wage?

Cons of Raising the Minimum WageLayoffs. If an employer has a tight compensation budget and the minimum wage is raised, it means they can no longer compensate the same number of employees at a higher rate and must make layoffs to remain within budget. … Price increase. … Fewer Hirings. … Competition Will Intensify. … Applied Inconsistently.

Can states have lower minimum wage than federal?

States can pass their own minimum wage laws. These laws can be lower than, equal to or higher than the federal minimum wage, or states can have no minimum wage laws at all. … If a state’s minimum wage is higher than the federal one, workers are entitled to the state-specific wage.

What states have $15 an hour minimum wage?

In addition to Florida, the following states have approved $15 an hour minimum wage increases:California.Connecticut.Illinois.Maryland.Massachusetts.New Jersey.New York.Virginia.More items…•

What is a living wage in the US 2020?

The living wage in the United States is $16.54 per hour, or $68,808 per year, in 2019, before taxes for a family of four (two working adults, two children), compared to $16.14 in 2018. The minimum wage does not provide a living wage for most American families.

Does everyone get a raise when minimum wage goes up?

Not everyone will get a raise, but people near the bottom will. There will be a diminishing effect of the minimum wage standard as you move up the ladder. Many people don’t get paid on an hourly basis, they get a salary that likely won’t change due to a minimum wage standard.

Does a higher minimum wage hurt the economy?

Raising the minimum wage does not kill jobs. Leading economists have found that increases in the minimum wage have no discernible effect on employment, including employment in high-impact sectors like restaurants and retail. … Raising the minimum wage increases consumer spending and boosts the economy.