How Much is Minimum Wage Today?
The federal minimum wage is $7.25 an hour and hasn't changed since July 2009. But that's only the floor. 30 states plus Washington, DC, set a higher rate, and many cities and counties have already set a higher wage. So the number you actually owe to your employee depends on where your restaurant is.
In many states, for tipped staff, the federal minimum wage is $2.13 an hour. Apart from this, tips are added to make the full minimum wage. Otherwise, the gap needs to be filled by the restaurant owner.
Some states allow a smaller tip credit, so your servers' base pay is higher. Seven states don't allow a tip credit at all. These 7 states are Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington. In those states, servers earn a higher minimum wage than in other states; also, tips are excluded.
Rates also keep moving. Florida goes up to $15.00 on September 30, 2026, and other states have increases already scheduled for 2027 and 2028.
As a restaurant operator, don't just check the state number. Look at your city and county too, and set a reminder each year to check for new rates, since most changes start January 1. Your state's Department of Labor website is the safest place to check the latest rates.