Minimum Wage U S. Department of Labor

The state prohibits cities and counties from setting local minimum wages higher than the state or federal requirement. A business in minimum wage around the us Atlanta is bound by the same wage rules as one in rural Georgia, regardless of differences in living costs. Employers cannot adopt region-specific pay rates unless mandated by federal law or internal policy. This uniformity simplifies compliance but eliminates the possibility of higher wages in urban areas through local ordinances. Georgia lawmakers have not introduced any significant wage legislation since the early 2000s. The state’s minimum wage has stayed the same despite national discussions around cost-of-living increases and inflation.

What countries require employers to pay a living wage?

Many workers in countries with developing economies are forced to survive on even lower minimum wages. This is because some businesses, often large multinational corporations, that benefit from the over production and over consumption of goods in high income countries, benefit from cheap labour, long hours and poor workers’ rights. Paying employees less than the required minimum wage in Georgia can result in serious legal and financial consequences for employers. Violations trigger specific actions, including federal or state investigations, lawsuits, and mandatory repayment of owed wages. Youth under 20 years old can earn $4.25 per hour during the first 90 consecutive days of employment. This lower training wage is designed for short-term use and cannot extend beyond the initial period.

• There is a minimum wage of $14.53 per hour for employers who employ fewer than 6 people and employees engaged in seasonal employment.
• A business in Atlanta is bound by the same wage rules as one in rural Georgia, regardless of differences in living costs.
• The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act.
• Therefore, the minimum wage, although better than nothing, is much less effective compared to the living wage – and often traps people in a cycle of poverty.
• The state of Connecticut has a minimum wage of $16.35 for non-tipped workers as of Jan. 1, 2025 and Montana has a minimum wage rate of $10.55 as of that date.
• Find out if your state has a higher minimum wage for tipped workers.

What happens if state law requires payment of a higher minimum wage than federal law?

You will also need to provide the name of the company that you are filing the complaint against. The location of the company as well as their contact information are also required. You will be expected to additionally provide the manager’s or owner’s names, the type of work that you did, and the method and frequency of payment that you received. Copies of pay stubs, person record Accounting Periods and Methods of hours and other information related to your employment are helpful.

Who sets the minimum wage?

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. The federal minimum wage is the lowest hourly wage an employer can legally pay, with some exceptions. Nearly 1.6 million Americans, 1.9% of hourly workers, make the federal minimum wage of $7.25 an hour. If an employee’s tips combined with the employer’s direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference.

During the same legislative session, the State Legislature passed 2023 SB 525 (Durazo) which increases minimum wages for healthcare workers https://www.bookstime.com/ to $25.00 per hour by June 1, 2028. After 90 consecutive days of employment or the employee reaches 20 years of age, whichever comes first, the employee must receive a minimum wage of $7.25 per hour. Until 1956, the federal minimum wage was still below a dollar, only rising to $1.15 by 1961. The minimum wage did not reach the current hourly rate of $7.25 until 2009. Stay up-to-date with your state’s minimum wage requirements by periodically checking your state’s website. Use the map below to see which states follow the federal minimum wage rate and which set their own minimum.

• The government periodically assesses the federal minimum wage level but the rate has not increased since July 2009.
• Department of Labor (DOL) or Georgia’s Department of Labor may audit payroll records if a complaint is filed.
• Employers are not obligated to provide rest or meal breaks unless specified by company policy or a union agreement.
• Efficiency wages are the level of wages paid to workers above the minimum wage to retain a skilled and efficient workforce.
• In restaurants and hotel restaurants, for the 7th consecutive day of work, premium pay is required at time and one half the minimum rate.
• While your employer may pay you different rates for different kinds of work, the pay rates cannot be averaged to meet your employer’s minimum wage obligations.

Every year, our global community comes together to fight injustice and support people whose human rights are under threat. Together, we can demand their right to organize and fight for fair treatment. States have a legal obligation to respect, protect and fulfil human rights, which means they are duty bound to ensure workers are able to enjoy a dignified life for themselves and their families.

• Commissioned salespeople, mechanics, people working at seasonal and recreational establishments, and computer professionals are commonly exempt.
• You can pay employees under age 20 a wage of $4.25 for the first 90 days of employment.
• The Minister of Employment and Labor in Korea asks the Minimum Wage Commission to review the minimum wage by March 31 every year.
• Employers must repay any back wages identified during an investigation.
• It details who the Fair Labor Standards Act covers, as well as what wage applies for probationary periods, minors, and training.
• You may wish to consult with an attorney prior to filing your claim, if possible.
• The amount of tips plus the $2.13 must reach at least $7.25 per hour.

Unlike states that adjust wages annually based on inflation or cost-of-living metrics, Georgia’s rate has stayed static. Employers must rely on federal increases to guide changes in pay rates. This lack of adjustments means payroll budgets in Georgia are less likely to fluctuate, but it can also lead to wage stagnation for employees. The B-READY team analyzed minimum wage levels from a private sector development perspective.

• The reason a minimum wage struggles to deliver efficiency gains is that with realistic firm productivity dispersion, a minimum wage that eliminates monopsony power at one firm causes severe rationing at another.
• Five states – Alabama, Louisiana, Mississippi, South Carolina, and Tennessee – do not have a state-mandated minimum wage at all.
• The government periodically assesses the federal minimum wage level with changes in inflation or the cost of living.
• Working poverty is rampant in industries with large, complex and global supply chains such as the garment industry, where workers earn lower wages than what is required to provide a decent standard of living.
• If neither of these special circumstances applies to you, then you are subject to the FLSA and employers must pay you the minimum wage.

The employer is expected to compensate the employee for the shortfall if the employee’s total tips and hourly rate fall below the minimum wage. Seven states have no state minimum and two, Georgia and Wyoming, have a minimum wage that is less than the federal minimum. The federal minimum wage in the United States is $7.25 per hour as of 2025 unless the worker falls into a category that’s specifically exempted from the Fair Labor Standards Act (FLSA). The Department of Labor (DOL), Wage and Hour Division (WHD), is responsible for enforcing Federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the FLSA.