Despite inflation, rising living costs, and ongoing discussions about wage fairness, 20 states in the U.S. continue to hold their minimum wage at or below the federal level of $7.25 per hour. This rate has remained unchanged since 2009, making it a key point of contention in the national conversation about economic justice.
The 13 States with a $7.25 Minimum Wage:
- Indiana
- Georgia
- Iowa
- Idaho
- Kansas
- Kentucky
- North Carolina
- North Dakota
- Oklahoma
- Pennsylvania
- Texas
- Utah
- Wisconsin
- Wyoming
5 States with No State Minimum Wage:
- Alabama
- Louisiana
- Mississippi
- South Carolina
- Tennessee
In these states, the federal minimum wage automatically applies.
Interestingly, Georgia and Wyoming technically have state minimum wages set at $5.15 per hour, but the federal rate of $7.25 supersedes this for most workers.
Why Does This Matter?
Minimum wage stagnation impacts millions of workers, particularly those in service industries, rural areas, and sectors with high labor demands but low wages. While 30 states and the District of Columbia have raised their minimum wages above the federal threshold—with some surpassing $15 per hour—these 20 states highlight a stark divide in labor policies across the country.
With inflation reaching record highs and the cost of essentials increasing, the $7.25 minimum wage represents a diminishing return on labor, often forcing workers to rely on multiple jobs or government assistance to make ends meet.
What’s Next?
Many advocates are pushing for a federal minimum wage increase, but progress remains slow. Until then, millions of Americans continue to earn wages that haven’t kept pace with the economic realities of 2025.
