Guide
Which minimum wage applies: federal, state, or city?
When more than one minimum wage covers a job, the highest one governs. How the layers stack and the exceptions.
Three layers can cover the same job: the federal minimum wage under the Fair Labor Standards Act, a state minimum wage, and in some places a city or county ordinance. Where they differ, the employee is owed the highest rate that applies to them. A state cannot lower the federal floor, and a city cannot lower the state floor.
The federal rate reaches most employers through FLSA coverage (enterprises with $500,000 or more in annual sales, plus employees engaged in interstate commerce, hospitals, schools, and public agencies). State laws often reach smaller employers the FLSA misses, and several states set a lower rate for very small employers. Local ordinances usually cover anyone who works a minimum number of hours inside the city limits, regardless of where the employer is based.
About half the states bar cities and counties from setting their own minimum wage. Each state page on this site says whether local rates are allowed and lists the ones in effect.
Common questions
Does the higher or lower minimum wage apply?
The higher one. Federal, state, and local minimum wage laws set floors, and an employer must meet every floor that covers the job.
Can a city set a minimum wage above the state?
Only where state law allows it. Roughly half the states preempt local minimum wage ordinances; the state pages here say which.
What if my employer is based in another state?
Minimum wage generally follows where the work is performed, not where the employer is headquartered.