As of December 2024, five states do not have their own state-mandently mandated minimum wage: Alabama, Louisiana, Mississippi, Tennessee, and South Carolina.
Understanding State Minimum Wage Laws
While the federal government sets a baseline minimum wage, individual states have the authority to establish their own, higher minimum wage rates. In states where a state minimum wage exists, employers must pay the higher of the state or federal rate. However, some states have chosen not to enact their own minimum wage laws, opting instead to adhere strictly to the federal standard or have no state-specific requirement.
The states currently without a state-mandated minimum wage are:
- Alabama
- Louisiana
- Mississippi
- Tennessee
- South Carolina
These states are unique in their approach, relying on the federal minimum wage as the default standard for most employers within their borders.
States Without a State Minimum Wage (As of December 2024)
| State | State Minimum Wage | Applicable Wage Standard |
|---|---|---|
| Alabama | None | Federal Minimum Wage (currently $7.25/hour) |
| Louisiana | None | Federal Minimum Wage (currently $7.25/hour) |
| Mississippi | None | Federal Minimum Wage (currently $7.25/hour) |
| Tennessee | None | Federal Minimum Wage (currently $7.25/hour) |
| South Carolina | None | Federal Minimum Wage (currently $7.25/hour) |
What Does "No Minimum Wage" Mean for Workers and Employers?
For workers in these states, this generally means that the federal minimum wage of $7.25 per hour applies to most non-exempt employees covered by the Fair Labor Standards Act (FLSA). Employers in these states are still obligated to comply with all federal labor laws, including overtime pay and child labor provisions.
Key implications include:
- Federal Minimum Wage: Unless a specific local ordinance or collective bargaining agreement dictates otherwise, the federal minimum wage is the base pay.
- No State-Specific Increases: Workers in these states do not benefit from state-level minimum wage increases that occur in other states.
- Local Ordinances: While no state minimum wage exists, some cities or counties within these states might have local minimum wage ordinances that set a higher rate. However, this is less common than in states with their own statewide minimum wage.
- Market Forces: Wages in these states can be more heavily influenced by market supply and demand, as well as industry standards, rather than a state-mandated floor.
For more detailed information on minimum wage laws across the United States, you can refer to resources from the U.S. Department of Labor.
