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Lowest State Minimum Wage

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I’m just wondering. Which state has the lowest minimum wage? My husband says it’s our home state of

Texas, with a state minimum wage of $5.15. I say it’s lower somewhere.

There are 6 states with minimum wages lower than $5.15 per hour.

Technically, Kansas has the lowest state minimum wage at just $2.65 per hour. The Kansas state minimum wage law was passed many years ago,  and hasn’t been increased. Each year, state politicians debate a higher

Kansas minimum wage, but so far, they haven’t increased that rate.

However, there are 5 U.S. states with absolutely no state minimum wage. These are Mississippi, Alabama, Louisiana, Tennessee and South Carolina. In those states, as long as your business isn’t covered by the federal minimum wage, you could legally hire someone for 15 cents per hour… if you could find anyone foolish enough to work for that rate.

Bear in mind that most businesses in the U.S. are covered by the federal minimum wage law, the Fair Labor Standards Act (FLSA). The FLSA currently requires a covered employer to pay at least $5.15 per hour. As you may already know, on July 25, 2007 that rate will increase to $5.85 per hour.

Businesses and non-profit agencies with 2 or more employees are covered by the FLSA if their revenue is more than $500,000 per year. In addition, hospitals, schools and government agencies – among others – are covered regardless of volume. Businesses are also covered by the federal law if they do business across state lines. That would include buying from out-of-state suppliers or regularly making sales calls – or sending catalogs – out of the state.

Even if the company doesn’t do businesses across state lines, an employee who regularly makes out-of-state phone calls or sorts mail from other states may be covered under the FLSA. Employees who produce goods for interstate commerce are also covered under the federal law.

By the way, more than 10 other states share the Texas rate of $5.15 – at least, until the federal minimum wage goes up. A number of states, including Texas, specify that the state minimum wage is the same as the federal minimum wage.

Keep in mind that about 25 states have minimum wages that are higher than $5.15 per hour. When an employee is covered under both a state and a federal law, they are entitled to the greater benefit. In this case, that means the employee is entitled to whichever minimum wage is higher.