Why does minimum wage differ from state to state

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It conducts public opinion polling, demographic research, media content analysis and other empirical social science research. Pew Research Center does not take policy positions. It is a subsidiary of The Pew Charitable Trusts. Newsletters Donate My Account. Research Topics. Share this link:. Louis Federal Reserve. But the level at which a minimum wage is set versus how that wage actually stacks up against living costs is a serious factor that varies not only between states, but between municipalities within states.

A broad, state-wide minimum wage might get you a lot more of the basic necessities in some areas, but often leaves those living in pricier, urban locales—which often offer the best job opportunities —struggling to make ends meet. For some states, a more locally-based minimum wage might be an option for coping with the vast differences in purchasing power that can occur in one state, Gascon says. That made them the largest city in the U. The idea of municipalities determining their own minimum wages isn't new, Santa Fe and San Francisco enacted theirs in But the trend has certainly picked up steam, with five local minimum-wage ordinances passed in That number more than doubled in Critics cite increased costs for businesses that might drive them out of cities and towns that require higher wages, or lead them to hire fewer workers.

In , Oklahoma passed a law explicitly prohibiting localities from raising their minimum wages on their own after Oklahoma City proposed an increase that would surpass the state and federal minimums. According to the National Employment Law Project, some of the economic fears that surround minimum wage increases—like the possibility of reduced job growth— have yet to appear in cities that have enacted local pay raises.

Premium pay is required after 45 hours a week in seasonal amusements or recreational establishments. Under the new hospitality regulations, residential workers "live-in workers" are now entitled to overtime for hours worked over 40 in a payroll week, instead of the prior 44 hour requirement.

Therefore, overtime hours for all non-exempt workers are now any hours worked over 40 in a payroll week. Domestic workers are entitled to 24 hours of consecutive rest each week, and receive premium pay if they work during such period.

Employees receive 1 hour of pay at minimum wage rate in addition to owed wages when spread of hours exceeds 10 hours, there is a split shift, or both. From through , the minimum wage will increase annually on a set schedule and will be adjusted annually thereafter based on set formula. The Oklahoma state minimum wage law does not contain current dollar minimums. Instead the state adopts the federal minimum wage rate by reference.

Premium pay required after 10 hours a day in nonfarm canneries, driers, or packing plants and in mills, factories or manufacturing establishments excluding sawmills, planning mills, shingle mills, and logging camps. Time and one-half premium pay for work on Sundays and holidays in retail and certain other businesses is required under two laws that are separate from the minimum wage law.

The Texas State minimum wage law does not contain current dollar minimums. Instead the State adopts the federal minimum wage rate by reference. The Utah state minimum wage law does not contain current dollar minimums. Instead the state law authorizes the adoption of the federal minimum wage rate via administrative action.

The Virginia state minimum wage law does not contain current dollar minimums. The Vermont minimum wage is automatically replaced with the federal minimum wage rate if it is higher than the State minimum. Premium pay not applicable to employees who request compensating time off in lieu of premium pay.

The Commonwealth of the Northern Mariana Islands has special minimum wage rates. Employers not covered by the FLSA will be subject to a minimum wage that is at least 70 percent of the federal minimum wage or the applicable mandatory decree rate, whichever is higher. The Secretary of Labor and Human Resources may authorize a rate based on a lower percentage for any employer who can show that implementation of the 70 percent rate would substantially curtail employment in that business.