Federal, state, and local minimum wages

This article is for admins who manage minimum wage compliance in Gusto.

Minimum wage laws set the lowest hourly rate you can pay your team. The federal government sets a baseline, but many states and cities set higher rates.

Federal, state, and local minimum wage rules

Knowing which minimum wage applies to your team helps you stay compliant.

• The federal minimum wage is $7.25/hr (unchanged since 2009).

• Many states and cities set higher rates. You must always pay the highest applicable rate.

If you set up Fair Labor Standards Act (FLSA) tip credits in Gusto, we alert you to state and local increases and update your settings automatically.

Find the current minimum wage

To find a minimum wage:

• Priority support customers: Use the Minimum Wage Map in the HR Resource Center.

• All customers:

  • Visit this Department of Labor resource, or

  • Check your state labor office or local government website. 

You can also check out our blog on minimum wages.