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Georgia and Wyoming share the dubious honor of having the lowest state-mandated minimum wages in the U.S., at $5.15 an hour.
However, that applies only to employers and workers who are not covered by the federal Fair Labor Standards Act (FLSA). Otherwise, workers must receive at least the current federal minimum wage of $7.25 per hour, which hasn’t changed since 2009.
Key Takeaways
- States can set their own minimum wages, but most jobs fall under federal wage laws that guarantee at least $7.25 an hour.
- Georgia and Wyoming have the lowest minimum wage for workers who don’t qualify for the federal minimum, at $5.51.
- Many states set their minimum wage considerably higher than the federal one, which hasn’t increased since 2009, to reflect cost of living increases and inflation.
- A $5.15-per-hour salary falls far below the federal poverty line and is well below the living wage in either state.
When the Federal Minimum Wage Applies
The Fair Labor Standards Act was established as part of the New Deal in 1938. Its purpose includes setting minimum wage and overtime pay rules for both full- and part-time workers “in the private sector and in federal, state, and local governments.”
Most jobs are covered by the FLSA rules, but some are exempt, including:
- Executive, administrative, and professional employees
- Certain employees in computer-related occupations
- Some domestic service employees working in private homes
Additionally, some states have subminimum wages or exemptions for minors, students, or new hires in training periods, the U.S. Department of Labor notes.
The federal minimum wage of $7.25 has not changed since 2009, and many states have adopted higher minimum wages on their own.
What Earning $5.15 an Hour Looks Like
A worker who earns $5.15 an hour and puts in 40 hours a week for all 52 weeks of the year would collect $10,712 a year before taxes. That is substantially less than the federal poverty line of $15,650 for a one-person household. If a worker has, say, two children, their before-tax pay would be less than half of the $26,650 poverty line for a family of three.
The poverty line is based on “the minimum level of resources that are adequate to meet basic needs.” Among other purposes, it is used to determine eligibility for a variety of federal benefits.
The Living Wage Gap
The disparity becomes even clearer when compared with estimates from the MIT Living Wage Calculator, which estimates the hourly income a full-time worker needs to meet basic needs in different locations.
- In Georgia, a single adult with no children needs $23.94 per hour to meet basic expenses.
- In Wyoming, the living wage for a single adult is $21.14 per hour.
That’s more than three to four times higher than the $5.15-per-hour state minimum in both states and still significantly above the federal $7.25 minimum.
The Bottom Line
While Georgia and Wyoming have the lowest state minimum wages in the U.S. at $5.15 per hour, most workers are still protected by the federal minimum of $7.25, thanks to the FLSA. Still, even that wage falls far short of what’s needed to meet basic living costs in most parts of the country.
States can also establish their own minimum wage. Some set it considerably higher than the federal rate, while several, including Georgia and Wyoming, set it lower.
As debates around wage laws and inflation continue, workers and policymakers alike are increasingly looking at living wage benchmarks to reflect what it really takes to stay afloat.
