Minimum Wage Laws in the States – July 24, 2009
Note: Where Federal and state law have different minimum wage rates, the higher standard applies.
States with minimum wage rates higher than the Federal States with no minimum wage law States with minimum wage rates the same as the Federal States with minimum wage rates lower than the Federal American Samoa has special minimum wage rates
As I outlined recently, minimum wage laws create unemployment if the wage is fixed above the market wage.
Expect those states with minimum wages above the federal level (green) to experience problems with their minimum wage legislation sooner or later. That portion of unemployment which is to be imputed upon minimum wage laws will be significantly higher there. Thus overall unemployment is likely to be sustained at much higher levels there. We may see a noticeable exodus of workers from those green states to some of the red, blue, or yellow states over time.