The Federal Minimum Wage: $7.25 Since 2009, the Longest Freeze in FLSA History
The federal minimum wage has not increased in over 15 years. Meanwhile 30 states have set their own higher floors, California fast food worket);font-size:1rem;max-width:640px;margin:0 0 8px;"> The federal minimum wage has not increased in over 15 years. Meanwhile 30 states have set their own higher floors, California fast food workers earn $20, and polling shows two-thirds of Americans support a $15 federal floor. Here is where things stand and why Congress has not acted.
- The federal minimum wage is $7.25/hour — unchanged since July 24, 2009, the longest freeze since the Fair Labor Standards Act was passed in 1938
- 30+ states plus DC have set their own higher minimums; Washington state leads at $16.28/hr and California fast food workers have a separate $20/hr floor
- Roughly 65% of Americans support raising the federal floor to $15, including majorities of Republicans in some polls — but Senate filibuster rules require 60 votes, blocking passage
- The Senate parliamentarian ruled in 2021 that a minimum wage increase cannot be passed through reconciliation, meaning a $15 federal floor needs 60 Senate votes — which it does not currently have
How the Minimum Wage System Works
| Level | Who Sets It | 2026 Examples |
|---|---|---|
| Federal floor | Congress via FLSA | $7.25/hr — applies where no higher state/local law |
| State minimum | State legislature or ballot measure | CA $16, WA $16.28, NY $16, FL $13, TX $7.25 (federal) |
| Local minimum | City or county ordinance | Seattle $19.97, NYC $16.50, DC $17.50 |
| Sector-specific | State sector board | CA fast food workers $20/hr under AB 1228 (2024) |
| Tipped workers | Federal sub-minimum for tipped workers | $2.13/hr federal tipped minimum — employer must make up difference to $7.25 |
FLSA History: Minimum Wage Since 1938
Congress enacted the Fair Labor Standards Act in 1938, setting an initial federal minimum of $0.25/hour. The minimum was raised 22 times between 1938 and 2009 — roughly once every three years on average. The current $7.25 rate has now held for more than 15 years, easily the longest freeze in the law's history.
In inflation-adjusted terms, the federal minimum wage peaked in 1968 at approximately $12.50 in 2026 dollars. The current $7.25 is worth roughly 40% less in real terms than the 1968 peak. Proponents of increase argue this erosion has shifted wealth from lower-wage workers to employers; opponents argue a higher minimum reduces employment for the lowest-skill workers and harms small businesses in lower-cost regions.
Why It Matters for 2026
Congress has been unable to pass a federal increase. Democrats have used state ballot initiatives to raise minimums even in red states — Florida voters approved a path to $15 in 2020 (70% yes). Minimum wage measures are popular at the ballot box and drive Democratic base turnout. In 2026, several states are likely to have wage measures on the ballot.
In 2021 the Senate parliamentarian ruled that a federal minimum wage increase could not pass via budget reconciliation (the procedure Democrats used to bypass the filibuster for the ARP). This meant a $15 federal minimum needed 60 Senate votes — a threshold it could not clear. Senate rules reform would be required for a federal minimum wage to advance legislatively in the current environment.
Trump proposed eliminating federal income taxes on tips during the 2024 campaign, a popular-sounding policy with workers who receive gratuities. But critics argued it does little for the 68% of tipped workers earning below the federal income tax threshold and creates tax arbitrage for high earners who reclassify income as tips. The policy was included in the 2025 reconciliation framework; its final form remained contested in 2026.
Frequently Asked Questions
What is the current federal minimum wage?
$7.25 per hour, unchanged since July 24, 2009. It applies to most private employers and all government employers with two or more employees. Employers subject to both a federal and state minimum must pay the higher of the two. About 20 states still use the federal floor as their minimum.
Do most Americans support raising the minimum wage to $15?
Yes — consistently about 60-65% in national polling, including pluralities in some Republican-leaning surveys. The Raise the Wage Act passed the House in 2021 but died in the Senate. A $15 minimum wage ballot measure won in Florida (a GOP-leaning state) with 61% of the vote in 2020, illustrating how the policy's popular support can exceed party lines.
Which states have the highest minimum wages?
Washington state led at $16.28/hour in 2026. California was at $16.00 statewide (fast food $20). DC led all US jurisdictions at $17.50. Many high-cost cities set their own floors above state levels: Seattle was $19.97 and San Francisco was over $18. Index-linked minimums in states like WA, CO, and MN automatically adjust with inflation each year.
