Minimum Wage History: 1938–2026
Last updated: · Source: US Department of Labor and Bureau of Labor Statistics CPI-U
Federal Minimum Wage · Since 2009
Worth only ~$4.64/hr in 2009 dollars today
Federal Minimum Wage History: 1938–2026
Congress has raised the federal minimum wage 22 times since the Fair Labor Standards Act (FLSA) established it at $0.25/hr in 1938. The most recent increase, to $7.25/hr, took effect July 24, 2009, the last step of a three-part raise passed in 2007. The table below shows every rate change in the law's history.
The Fair Labor Standards Act of 1938 established the first federal minimum wage at $0.25/hr, and Congress has amended it 22 times since to raise the rate.
| Effective Date | Minimum Wage |
|---|---|
| 2009-07-24 | $7.25/hr |
| 2008-07-24 | $6.55/hr |
| 2007-07-24 | $5.85/hr |
| 1997-09-01 | $5.15/hr |
| 1996-10-01 | $4.75/hr |
| 1991-04-01 | $4.25/hr |
| 1990-04-01 | $3.80/hr |
| 1981-01-01 | $3.35/hr |
| 1980-01-01 | $3.10/hr |
| 1979-01-01 | $2.90/hr |
| 1978-01-01 | $2.65/hr |
| 1976-01-01 | $2.30/hr |
| 1975-01-01 | $2.10/hr |
| 1974-05-01 | $2.00/hr |
| 1968-02-01 | $1.60/hr |
| 1967-02-01 | $1.40/hr |
| 1963-09-03 | $1.25/hr |
| 1961-09-03 | $1.15/hr |
| 1956-03-01 | $1.00/hr |
| 1950-01-25 | $0.75/hr |
| 1945-10-24 | $0.40/hr |
| 1939-10-24 | $0.30/hr |
| 1938-10-24 | $0.25/hr |
How the Federal Minimum Wage Lost Purchasing Power
The federal minimum wage has stayed at $7.25/hr in nominal terms since 2009, but inflation has steadily eroded what that $7.25 can actually buy. Measured in 2009 dollars using the Bureau of Labor Statistics' CPI-U index, today's $7.25/hr is only worth about $4.64/hr in real purchasing power, a loss of roughly 36% over 17 years. Put another way, a full-time minimum-wage worker in 2026 can buy noticeably less with a week's pay than a minimum-wage worker could in 2009, even though the hourly rate printed on their paycheck hasn't changed.
| Year | Nominal Rate | Real Value (2009 dollars) | Purchasing Power Lost |
|---|---|---|---|
| 2009 | $7.25/hr | $7.25/hr | — |
| 2010 | $7.25/hr | $7.13/hr | -2% |
| 2011 | $7.25/hr | $6.92/hr | -5% |
| 2012 | $7.25/hr | $6.77/hr | -7% |
| 2013 | $7.25/hr | $6.68/hr | -8% |
| 2014 | $7.25/hr | $6.57/hr | -9% |
| 2015 | $7.25/hr | $6.56/hr | -9% |
| 2016 | $7.25/hr | $6.48/hr | -11% |
| 2017 | $7.25/hr | $6.35/hr | -12% |
| 2018 | $7.25/hr | $6.19/hr | -15% |
| 2019 | $7.25/hr | $6.08/hr | -16% |
| 2020 | $7.25/hr | $6.01/hr | -17% |
| 2021 | $7.25/hr | $5.74/hr | -21% |
| 2022 | $7.25/hr | $5.31/hr | -27% |
| 2023 | $7.25/hr | $5.10/hr | -30% |
| 2024 | $7.25/hr | $4.96/hr | -32% |
| 2025 | $7.25/hr | $4.83/hr | -33% |
| 2026 | $7.25/hr | $4.64/hr | -36% |
Real-value figures are approximate, derived from published CPI-U year-over-year equivalents and rounded to the cent.
State-by-State Minimum Wage History: 2020–2026
Unlike the federal rate, most states have raised their minimum wage at least once since 2020: several through annual CPI-indexed adjustments, others through multi-year phase-ins passed by ballot initiative or legislation. Florida raised its rate the most over this period, up $6.35/hr since 2020.
| State | 2020 Rate | 2026 Rate | Change |
|---|---|---|---|
| Florida | $8.65/hr | $15.00/hr | +$6.35/hr |
| Nebraska | $9.00/hr | $15.00/hr | +$6.00/hr |
| Delaware | $9.25/hr | $15.00/hr | +$5.75/hr |
| Missouri | $9.45/hr | $15.00/hr | +$5.55/hr |
| Illinois | $10.00/hr | $15.00/hr | +$5.00/hr |
| Connecticut | $12.00/hr | $16.94/hr | +$4.94/hr |
| Rhode Island | $11.50/hr | $16.00/hr | +$4.50/hr |
| Maryland | $11.00/hr | $15.00/hr | +$4.00/hr |
| Vermont | $10.96/hr | $14.42/hr | +$3.46/hr |
| Nevada | $9.00/hr | $12.00/hr | +$3.00/hr |
| New Mexico | $9.00/hr | $12.00/hr | +$3.00/hr |
| South Dakota | $9.30/hr | $11.85/hr | +$2.55/hr |
| Massachusetts | $12.75/hr | $15.00/hr | +$2.25/hr |
| Montana | $8.65/hr | $10.85/hr | +$2.20/hr |
| Arkansas | $10.00/hr | $11.00/hr | +$1.00/hr |
| Louisiana | $7.25/hr | $7.25/hr | $0.00/hr |
| Mississippi | $7.25/hr | $7.25/hr | $0.00/hr |
| New Hampshire | $7.25/hr | $7.25/hr | $0.00/hr |
| North Dakota | $7.25/hr | $7.25/hr | $0.00/hr |
Frequently Asked Questions
The federal minimum wage was last raised on July 24, 2009, when it increased to $7.25 per hour, the third and final step of the Fair Labor Standards Act (FLSA) amendments signed in 2007. As of 2026, that is over 16 years without a federal increase, the longest gap in the minimum wage's history.
Florida raised its minimum wage the most of any state since 2020, from $8.65/hr in 2020 to $15.00/hr in 2026, an increase of $6.35/hr.
The federal minimum wage has been fixed at $7.25/hr in nominal terms since 2009, but inflation has eroded its real value. Adjusted for CPI, that $7.25 now buys what only about $4.64 could buy in 2009, a loss of roughly 36% of its purchasing power.
Congress has raised the federal minimum wage 22 times since the Fair Labor Standards Act created it at $0.25/hr in 1938, most recently in three steps between 2007 and 2009 that brought it to $7.25/hr.
States are free to set a minimum wage above the federal floor, and many with a higher cost of living (including California, Washington, New York, and Connecticut) have done so through state legislation or ballot initiatives. States with a lower cost of living often default to the $7.25/hr federal rate.