Fast facts
- The federal minimum wage has been $7.25 since 2009, but many states and cities have higher minimum wages.
- In any given place, the highest applicable minimum wage (between federal, state, and city) is the legally enforceable one. Typically, this means that state trumps federal, and city trumps state.
- Tukwila, WA, has the highest municipal minimum wage at $20.29 for companies with over 500 employees, while Washington D.C. has the highest state/territory minimum wage at $17.
- Fast-food workers in the state of California must be paid at least $20 per hour as of April 2024.
For many Americans, the prices of goods and services feel like they go up much more quickly than the wages we use to pay for them.
And while this isn’t actually the case when we look at the economy at large — wage growth has actually outpaced inflation in general since March 2023 — it sure feels like it for much of the workforce, especially hourly workers whose jobs fall into the categories of unskilled labor (an inaccurate but unfortunately still-common moniker) and entry-level work.
City, state & federal minimum wages & how they work
The federal minimum wage — a disastrously low $7.25 per hour — hasn’t changed since 2009, but luckily, higher state and city minimum wages take legal precedence over the federal minimum (in places where they exist, that is). Of course, not all states and cities have their own minimum wage laws, but many do, and hourly workers can often bring home significantly higher paychecks if they work in one of these places.
It’s important to note, of course, that cities with higher minimum wages often also have higher costs of living (e.g., higher rent prices, more expensive groceries, etc.).
That being said, those who are resourceful and budget-conscious may be able to leverage the higher wages offered in a particular location to meet their financial goals sooner by getting creative with their living situation, seeking out the best deals on their most crucial expenses, commuting from a cheaper community, or eliminating extraneous spending.
Here are the cities and states with the highest minimum wages in the United States.
The 20 cities with the highest minimum wages in the U.S. (ranked)
- Tukwila, Washington: $20.29 (for companies with 501+ employees), $18.29/$19.29 (for companies with 15–499 employees or revenue over $2 million); $16.28 (for non-franchise companies with fewer than 15 employees)
- Seattle, Washington: $19.97 (for companies with 501+ employees), $17.25 plus at least $2.72 in additional compensation via tips and benefits (for companies with 500 or fewer employees)
- SeaTac, Washington: $19.71
- Burien, Washington: $19.28 for companies with/ 500+ employees ($18.28 for those with 21–499; $17.28 for those with 20 or fewer)
- West Hollywood, California: $19.08 ($19.61 beginning July 1, 2024)
- Mountain View, California: $18.75
- Emeryville, California: $18.67 ($19.36 beginning July 1, 2024)
- Sunnyvale, California: $18.55
- Denver, Colorado: $18.29 (set to increase each year based on regional CPI)
- San Francisco, California: $18.07 ($18.67 beginning July 1, 2024)
- Berkeley, California: $18.07 (set to increase based on CPI beginning July 1, 2024)
- El Cerrito, California: $17.92 (higher minimums for healthcare workers)
- Palo Alto, California: $17.80
- Los Altos, California: $17.75
- Cupertino, California: $17.75
- Santa Clara, California: $17.75
- Redwood City, California: $17.70
- Sonoma City, California: $17.60 for companies with 26+ employees ($16.56 for those with 25 or fewer)
- San Jose, California: $17.55
- Santa Rosa, California: $17.45
Related: How to get a remote customer service job: Virtual call center careers & what they pay
The 15 U.S. states with the highest minimum wages (ranked)
- Washington, D.C.: $17
- Washington State: $16.28
- California: $16.00 ($20 for fast-food employees)
- Connecticut: $15.69
- New Jersey: $15.13
- Maryland: $15.00
- Massachusetts: $15.00
- New York State: $15.00
- Colorado: $14.42
- Arizona: $14.35
- Maine: $14.15
- Hawaii: $14.00
- Illinois: $14.00
- Rhode Island: $14.00
- Vermont: $13.67
Related: How much does Home Depot pay? Hourly wages for new employees
What is California’s minimum wage law for fast food workers?
All employees of all major fast-food restaurants (those with 60+ locations nationwide) in the state of California must receive a minimum wage of $20 per hour per AB 1228, a law that took effect on April 1, 2024.
Who is eligible for minimum wage?
According to the FLSA (Fair Labor Standards Act), all covered non-exempt workers must be paid the highest applicable minimum wage (local, state, or federal) in the place where they work.
Non-exempt means hourly, so minimum wage laws do not directly apply to salaried workers, who often receive more overall compensation than non-exempt (hourly) workers.
Related: How much does Walgreens pay? Entry-level positions, benefits & more
