Hailey
The federal minimum wage remains at $7.25/hour in 2025. States and cities are continuing to implement higher local rates, meaning workers must be paid whichever applicable rate is higher.
Several major states and cities increased their minimum wages effective January 1, 2025, with some other areas updating later in the year.
Notable examples include: Washington ($16.66); California ($16.50); New York ($16.50 in New York City/Long Island/Westchester; $15.50 elsewhere); Colorado ($14.81); and Florida’s increase scheduled for September 30, 2025.
Some local jurisdictions — for example Denver ($18.81) — still require higher minimums beyond their state floors.
The key rule: If your city or state sets a higher wage than the federal rate, the employer must pay the higher local or state minimum wage.
2025 minimum wage highlights
- Washington: $16.66/hour statewide from Jan 1 2025; several cities within the state have even higher local minimums.
- California: $16.50/hour statewide from Jan 1 2025; in some industries and cities the rate is higher.
- New York: $16.50/hour in New York City, Long Island and Westchester; $15.50/hour elsewhere in the state, effective Jan 1 2025.
- Colorado: $14.81/hour statewide effective Jan 1 2025; in Denver the rate is $18.81/hour reflecting a local minimum that exceeds the state’s floor.
- Florida: $14.00/hour statewide starting Sept 30 2025; tipped cash wage is $10.98/hour.
- Arizona: $14.70/hour statewide from Jan 1 2025.
Quick reference (selected 2025 rates)
| Jurisdiction | 2025 Minimum Wage | Effective Date | Notes |
|---|---|---|---|
| Federal | $7.25/hour | Ongoing | If state/local rate is higher, that applies |
| Washington (statewide) | $16.66/hour | Jan 1 2025 | Some cities within Washington have higher |
| California (statewide) | $16.50/hour | Jan 1 2025 | Local/industry higher thresholds exist |
| New York (NYC/LI/West.) | $16.50/hour | Jan 1 2025 | Rest of NY State: $15.50/hour |
| Colorado (statewide) | $14.81/hour | Jan 1 2025 | Denver city rate: $18.81/hour |
| Florida (statewide) | $14.00/hour | Sept 30 2025 | Tipped cash wage: $10.98/hour |
| Arizona (statewide) | $14.70/hour | Jan 1 2025 |
What employers and workers should do now
- Check your exact location: Many cities or counties set minimum wages above the state floor. Ensure the rate you apply is the highest applicable one for your location.
- Verify tipped-wage rules: If you have tipped workers, confirm the cash wage and tip-credit rules in your state (for example, Florida’s tipped cash wage is $10.98/hour starting Sept 30).
- Watch for non-January updates: Some states schedule increases mid-year. For example, Florida’s rate rises in September rather than January.
In 2025 the most significant changes in minimum wage come from state and local increases, not a change in the federal rate.
If you work or hire employees in the U.S., the important task is to determine and apply the highest applicable minimum wage– federal, state or local.
Make sure your payroll is updated accordingly, understand tipped-wage rules if relevant, and monitor any non-January changes to stay compliant and ensure workers receive the correct 2025 wage.
FAQs
Is the federal minimum wage increasing in 2025?
No — the federal rate remains at $7.25/hour in 2025. Employers must still pay the higher state or city minimum where applicable.
Which state has the highest statewide minimum wage in 2025?
Washington leads with a statewide minimum of $16.66/hour in 2025. Certain cities within Washington and elsewhere exceed that figure.
When does Florida’s 2025 increase take effect?
Florida’s increase to $14.00/hour (and tipped cash wage to $10.98/hour) takes effect on September 30, 2025.