Human Resource Blog

Minimum Wage in Idaho

Do we need to use the federal minimum wage or the state minimum wage for our employees in Idaho?

Good question. You obviously are aware that there are two minimum wage rates. One minimum wage rate is the federal minimum wage, which is currently $5.85 per hour and is established by the Fair Labor and Standards Act. This minimum wage rate is the rate that many states choose to base their own minimum wages on. While there is a federal minimum wage, states have the right to established and enforce their own minimum wages.

While many states choose to make their minimum wage rates greater than or equal to the federal minimum wage, this is not a requirement. In fact, there are some states that have a minimum wage rate that is lower than the federal minimum wage rate. In the state of Idaho, the state minimum wage is currently equal to the federal minimum wage rate ($5.85).

The federal minimum wage rate saw an increase on July 24, 2007 to the current rate of $5.85 and will see another few increases over the next couple of years. Beginning on July 24, 2008, the federal minimum wage rate will increase to $6.55 and again on July 24, 2009, the federal minimum wage rate will increase to $7.25 per hour.

Not all employees are entitled to receive the statewide minimum wage. In Idaho, employees that have disabilities may be able to receive a lesser minimum wage rate. Students may receive a lower hourly rate. Also, if you have employees that are under the age of 20, those employees may be able to receive a lower rate for the first 90 days of employment. Student learners may also receive a lower rate while they learn the ins and outs of the job. Additionally, tipped employees may receive a lower rate as long as the tips add up to give the employee at least the minimum hourly wage rate. CB