The twenty states still on $7.25
Twenty states have no statewide rate above the federal floor, so $7.25 applies. They are Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin and Wyoming.
Two of them, South Carolina and Tennessee, have no state minimum wage statute at all. The federal rate applies by default. Georgia's own statute is $5.15, which is why Georgia technically has the lowest state rate in the country; the federal $7.25 overrides it.
Why these states hold out
Four reasons recur. A low cost of living makes the floor feel less urgent than it does on the coasts. Small-business lobbies in low-density states carry more weight than the restaurant and retail chains that dominate elsewhere. Several of these states index nothing, so an increase requires new legislation rather than an automatic step. And in a few, pre-emption laws bar cities from setting their own rate at all.
Which cities have broken away anyway
| City | Rate | State floor |
|---|---|---|
| Denver, CO | $18.81 | State was higher anyway |
| Chicago, IL | $16.60 | Higher than state $15.00 |
| Seattle, WA | Above $20 | Already the highest state |
| Tucson, AZ | State rate applies | Indexed since 2017 |
The pattern matters more than the numbers. Federal-floor states with growing metros see the strongest push to go local, and where state law allows it, the city rate governs work performed inside the city limits. If you cross a municipal boundary to work, your commute also crosses the line where the number changes.
What to do
Search your state labour department for the current rate with its effective date, then the same for your city. Where the two disagree, the higher one for your work location is the one that binds.