The official minimum wage in Georgia is an astoundingly low $5.15 per hour. Because federal law requires the higher federal rate of $7.25 must be paid when state and federal rates conflict, the overwhelming majority of employees receive a minimum wage in excess of the Georgia minimum wage. Companies should thus plan and budget based on the federally required rate of pay per hour. Employees who are tipped are required to receive a cash wage of at least $2.13 per hour, so long as their tips bring them to $7.25 in toto.
Is the Georgia Minimum Wage $7.25 or $5.15?
When one searches for the minimum wage in Georgia online, one would probably get to see flummoxing dual standards of $5.15 per hour and $7.25 per hour. Let us address this confusion.
It is commonly observed in the United States that a dual system is followed by certain states where local legislation hasn't kept pace with nationally applicable, federal changes.
Long story short, while the state of Georgia technically maintains a minimum wage of $5.15 per hour under the Georgia Minimum Wage Law (GMWL), almost all businesses operating in the state are required to comply with the federal Fair Labor Standards Act (FLSA), which currently sets the floor at $7.25 per hour.
The operative minimum wage rate for the vast majority of employees working in the Peach State as employers must always follow the higher of the state or federal rate.
Georgia businesses must understand that the $5.15 state rate doesn't simply disappear. A very small set of employees who are not covered by the federal FLSA come under the baseline that the minimum rate is applied to.
This leads to potential non-compliance, particularly for smaller, local businesses, as the above clear distinction is often misunderstood.
Who in Georgia Actually Gets Paid $5.15?
The federal law, FLSA, widely covers most businesses that participate in interstate commerce or have gross sales exceeding $500,000 per year. It is very broad and ensures that most businesses pay the $7.25 rate.
There are very limited instances where the $5.15 state rate or another specific rate may be applicable. These include:
Small Businesses That are Not Protected By FLSA: Smaller businesses that are not engaged in retail and service businesses and are not protected under FLSA might comply with the state law requiring a minimum wage of $5.15 per hour.
Businesses with Low Annual Sales: The FLSA normally exempts an employer operating a retail or service business with annual gross sales amounting to $500,000 or less. These employers would be obligated by the GMWL to pay no more than $5.15 per hour.
Full-time Students: Full-time students engaged in specific occupations, such as retailing, agriculture, and institutions of higher learning, receive an hourly rate that constitutes 85% of the federal minimum wage. This translates approximately to $6.16 per hour based on the federal minimum set at $7.25.
Learners and Apprentices: Those employees who are not covered under the FLSA minimum wage provisions are eligible for a highly complex computation involving state law. As a result, these employees are paid $0.90 less than the $5.15 state minimum wage.
Youth Minimum Wage: Young people below 20 years old can be paid a “training wage” of $4.25 an hour under federal regulations for the first 90 calendar days of employment. Afterward, they have to be paid the full federal minimum wage rate of $7.25 an hour.
Almost all full-time and non-exempt employees will still be required to have a base amount of $7.25 per hour as minimum wage.
The Tipped Minimum Wage in Georgia
The FLSA is a standard default for even tipped employees in the State of Georgia.
A cash wage of only $2.13 per hour is mandated to be paid by an employer in Georgia to their employees who regularly receive more than $30 in tips per month.
A crucial caveat known as the "tip credit" should be considered. The employer must ensure that for all the hours worked, the employee’s cash wage ($2.13) plus their earned tips is equal to or greater than the full federal minimum wage of $7.25 per hour, just like in the rest of the States that come under this law.
The employer is legally bound to make up the difference if the employee’s tips, combined with the $2.13 cash wage, do not reach the $7.25 hourly threshold.
History of Georgia's Minimum Wage
The minimum wage in Georgia has virtually remained static for decades, unlike in many states that have implemented ballot measures or legislative mandates to systematically increase their minimum wage towards an upper ceiling of $15 per hour.
The current state minimum wage of $5.15 has been in place since 2001, though some sources trace the rate back to 1997.
The real history of the operational wage in Georgia mirrors the federal adjustments:
- 2005 - July 2007: The operational minimum wage was $5.15 (both state and federal rates were $5.15 at that time).
- July 2007: The federal rate increased to $5.85 per hour, which immediately overrode the state's $5.15 rate.
- July 2008: The federal rate climbed again to $6.55 per hour, widening the gap.
- July 2009 - 2025: The federal rate reached its current level of $7.25 per hour, where it has remained ever since, making it the effective, mandatory minimum for most of Georgia's workforce, while the minimum wage in Georgia hasn’t caught up yet.
| Year | Minimum Wage ($/hour) |
|---|---|
| 2005 | $5.15 |
| 2006 | $5.15 |
| 2007 | $5.15 |
| 2008 | $5.15 |
| 2009 | $5.15 |
| 2010 | $5.15 |
| 2011 | $5.15 |
| 2012 | $5.15 |
| 2013 | $5.15 |
| 2014 | $5.15 |
| 2015 | $5.15 |
| 2016 | $5.15 |
| 2017 | $5.15 |
| 2018 | $5.15 |
| 2019 | $5.15 |
| 2020 | $5.15 |
| 2021 | $5.15 |
| 2022 | $5.15 |
| 2023 | $5.15 |
| 2024 | $5.15 |
| 2025 | $5.15 |
Compliance and Compensation in the Peach State
In Georgia, with federal standards dictating its effective minimum wage, running a business, as it relates to labor rate standards, particularly as it relates to overtime, classification, and computation, calls for minute compliance with FLSA regulations.
The transport, retail, and hospitality industries in Georgia are considered high-volume businesses. All employees, from entry level to management, are stringently ensured to be properly classified and paid for overtime work (time and a half after 40 hours). It can cost dearly due to disputed overtime pay.
Contemporary HR departments are increasingly incorporating technology as a means of systematizing processes that have a focus on addressing the complexities associated with wage laws, ranging from being tuned to tipped employees to federal minimums.
FAQs
1. Why is the minimum wage in Georgia actually $5.15?
It will be seen as somewhat surprising that the Georgia Minimum Wage Law sets a rate for Georgia as low as $5.15 an hour. It should be noted that it is considerably higher at $7.25 an hour and that this rate automatically prevails for almost all businesses within Georgia.
2. Did the minimum wage in Georgia increase for 2025?
There have been no changes either from the state legislature of Georgia or from voter referendums on the rate at which the minimum wage needs to be paid at $5.15 an hour. As there have been no changes made in t
he federal minimum wage at $7.25, there will be no increase in the minimum wage rate applicable for 2025 either.
3. Does any Georgia city pay a higher minimum wage?
The state of Georgia ensures that local governments are not permitted to set a higher minimum wage rate within their jurisdiction. It means that there will be no difference in the minimum wage rate, which will remain at $7.25 for all cities and counties within Georgia, including Atlanta and Savannah.
4. Can employers pay a training wage lower than $7.25?
Yes, under federal law, employees under 20 years old can receive a youth minimum wage rate of $4.25 per hour for the first 90 calendar days of employment. But after that, or if they turn 20, whichever occurs first, they are then entitled to be paid at the federal rate, that is, $7.25 per hour.
5. If I work for tips, is my employer obligated to pay me $7.25 per hour?
Your employer is mandated by law to fill any gap remaining after applying the necessary minimum rate for tip employees of $2.13 per hour, as well as tips garnered within an hour on your pay with their own money, so that you will be paid at least $7.25 per hour, should the tips not amount to that amount.