Navigating payroll laws can be a daunting task for Shopify sellers who are expanding their businesses and hiring employees. Each state in the U.S. has its own unique payroll regulations, and understanding these laws is crucial for staying compliant and avoiding costly penalties. This guide provides an overview of payroll laws in all 50 states to help you manage your business with confidence.
Federal Payroll Basics
Before diving into state-specific laws, it’s essential to understand federal payroll requirements. Employers must comply with federal laws like:
Fair Labor Standards Act (FLSA):Â Governs minimum wage, overtime pay, and record-keeping requirements.
Federal Insurance Contributions Act (FICA):Â Requires employers to withhold Social Security and Medicare taxes from employees' wages.
Federal Unemployment Tax Act (FUTA):Â Requires employers to pay unemployment taxes on behalf of their employees.
Now, let’s break down the key payroll laws by state.
Payroll Laws by State
Washington, D.C.
Minimum wage: $17.00/hour (adjusted annually).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: At least twice a month.
Final paychecks: Due by the next business day after termination.
1. Alabama
Minimum wage: Follows federal minimum wage ($7.25/hour).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: No specific requirement; must adhere to agreed-upon terms.
Final paychecks: Must be issued by the next payday.
2. Alaska
Minimum wage: $10.85/hour (adjusted annually for inflation).
Overtime: Required for hours worked over 8 per day or 40 per week at 1.5x the regular rate.
Pay frequency: At least semi-monthly.
Final paychecks: Due within three working days of termination.
3. Arizona
Minimum wage: $13.85/hour (subject to annual adjustments).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: At least twice a month.
Final paychecks: Due within seven days or by the next payday, whichever comes first.
4. Arkansas
Minimum wage: $11.00/hour.
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Semi-monthly or biweekly.
Final paychecks: Due within seven days of termination.
5. California
Minimum wage: $15.50/hour for employers with 26+ employees; $15.00/hour for smaller employers.
Overtime: Required for hours worked over 8 per day, 40 per week, or the first 8 hours on the 7th consecutive workday at 1.5x the regular rate.
Pay frequency: At least twice a month.
Final paychecks: Due immediately upon termination; within 72 hours if the employee resigns without notice.
6. Colorado
Minimum wage: $13.65/hour (adjusted annually).
Overtime: Required for hours worked over 12 per day or 40 per week at 1.5x the regular rate.
Pay frequency: At least monthly.
Final paychecks: Due immediately upon termination or resignation.
7. Connecticut
Minimum wage: $15.00/hour.
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Weekly, unless otherwise agreed upon.
Final paychecks: Due the next business day after termination.
8. Delaware
Minimum wage: $11.75/hour.
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Biweekly or semi-monthly.
Final paychecks: Due by the next payday.
9. Florida
Minimum wage: $12.00/hour (increases annually until reaching $15.00/hour by 2026).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: No specific requirement; must adhere to agreed-upon terms.
Final paychecks: Due by the next scheduled payday.
10. Georgia
Minimum wage: $5.15/hour (federal minimum wage applies).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Semi-monthly or biweekly.
Final paychecks: Due by the next payday.
11. Hawaii
Minimum wage: $12.00/hour.
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Semi-monthly.
Final paychecks: Due immediately upon termination; next payday if the employee resigns.
12. Idaho
Minimum wage: $7.25/hour (matches federal minimum).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: No specific requirement; must adhere to agreed-upon terms.
Final paychecks: Due by the next payday.
13. Illinois
Minimum wage: $13.00/hour (increases annually).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Biweekly or semi-monthly.
Final paychecks: Due by the next payday.
14. Indiana
Minimum wage: $7.25/hour (matches federal minimum).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Semi-monthly or biweekly.
Final paychecks: Due by the next payday.
15. Iowa
Minimum wage: $7.25/hour (matches federal minimum).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Monthly, semi-monthly, or biweekly.
Final paychecks: Due by the next payday.
16. Kansas
Minimum wage: $7.25/hour (matches federal minimum).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: No specific requirement; must adhere to agreed-upon terms.
Final paychecks: Due by the next payday.
17. Kentucky
Minimum wage: $7.25/hour (matches federal minimum).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Semi-monthly or biweekly.
Final paychecks: Due by the next payday.
18. Louisiana
Minimum wage: No state minimum wage (federal minimum wage applies).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: No specific requirement.
Final paychecks: Due by the next payday.
19. Maine
Minimum wage: $13.80/hour (adjusted annually).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: At least biweekly.
Final paychecks: Due by the next payday.
20. Maryland
Minimum wage: $13.25/hour for employers with 15+ employees; $12.80/hour for smaller employers.
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Biweekly or semi-monthly.
Final paychecks: Due by the next payday.
21. Massachusetts
Minimum wage: $15.00/hour.
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Weekly or biweekly.
Final paychecks: Due immediately upon termination.
22. Michigan
Minimum wage: $10.10/hour.
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Biweekly or semi-monthly.
Final paychecks: Due by the next payday.
23. Minnesota
Minimum wage: $10.33/hour for large employers; $8.42/hour for small employers.
Overtime: Required for hours worked over 48 in a workweek at 1.5x the regular rate.
Pay frequency: Biweekly or semi-monthly.
Final paychecks: Due by the next payday.
24. Mississippi
Minimum wage: No state minimum wage (federal minimum wage applies).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: No specific requirement.
Final paychecks: Due by the next payday.
25. Missouri
Minimum wage: $12.00/hour.
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Biweekly or semi-monthly.
Final paychecks: Due by the next payday.
26. Montana
Minimum wage: $9.95/hour (adjusted annually).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Biweekly or semi-monthly.
Final paychecks: Due immediately upon termination or by the next payday.
27. Nebraska
Minimum wage: $10.50/hour.
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Monthly, semi-monthly, or biweekly.
Final paychecks: Due by the next payday.
28. Nevada
Minimum wage: $11.25/hour for employees without qualifying health benefits; $10.25/hour with benefits.
Overtime: Required for hours worked over 40 in a workweek or 8 in a day at 1.5x the regular rate.
Pay frequency: Semi-monthly.
Final paychecks: Due immediately upon termination or within 7 days if the employee resigns.
29. New Hampshire
Minimum wage: No state minimum wage (federal minimum wage applies).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Weekly or biweekly.
Final paychecks: Due by the next payday.
30. New Jersey
Minimum wage: $14.13/hour (for most employers; subject to annual adjustments).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Semi-monthly.
Final paychecks: Due by the next payday.
31. New Mexico
Minimum wage: $12.00/hour.
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Biweekly or semi-monthly.
Final paychecks: Due within 5 days after termination.
32. New York
Minimum wage: $15.00/hour (varies by region).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Weekly or biweekly.
Final paychecks: Due by the next payday.
33. North Carolina
Minimum wage: $7.25/hour (matches federal minimum).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Semi-monthly or biweekly.
Final paychecks: Due by the next payday.
34. North Dakota
Minimum wage: $7.25/hour (matches federal minimum).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Monthly, semi-monthly, or biweekly.
Final paychecks: Due by the next payday.
35. Ohio
Minimum wage: $10.10/hour for employers grossing $372,000 or more; $7.25/hour otherwise.
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Biweekly or semi-monthly.
Final paychecks: Due by the next payday.
36. Oklahoma
Minimum wage: $7.25/hour (matches federal minimum).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Semi-monthly.
Final paychecks: Due by the next payday.
37. Oregon
Minimum wage: $14.20/hour in Portland metro area; $13.20/hour in standard counties; $12.20/hour in non-urban counties.
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: At least monthly.
Final paychecks: Due by the end of the next business day after termination.
38. Pennsylvania
Minimum wage: $7.25/hour (matches federal minimum).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Semi-monthly or biweekly.
Final paychecks: Due by the next payday.
39. Rhode Island
Minimum wage: $13.00/hour.
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Weekly.
Final paychecks: Due the next payday.
40. South Carolina
Minimum wage: No state minimum wage (federal minimum wage applies).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Biweekly or semi-monthly.
Final paychecks: Due by the next payday.
41. South Dakota
Minimum wage: $10.80/hour (adjusted annually).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Semi-monthly.
Final paychecks: Due by the next payday.
42. Tennessee
Minimum wage: No state minimum wage (federal minimum wage applies).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Semi-monthly or biweekly.
Final paychecks: Due by the next payday.
43. Texas
Minimum wage: $7.25/hour (matches federal minimum).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Semi-monthly or biweekly.
Final paychecks: Due by the next payday.
44. Utah
Minimum wage: $7.25/hour (matches federal minimum).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Semi-monthly.
Final paychecks: Due by the next payday.
45. Vermont
Minimum wage: $13.18/hour (adjusted annually).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Weekly or biweekly.
Final paychecks: Due by the next payday.
46. Virginia
Minimum wage: $12.00/hour.
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Semi-monthly or biweekly.
Final paychecks: Due by the next payday.
47. Washington
Minimum wage: $15.74/hour (adjusted annually).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Semi-monthly.
Final paychecks: Due by the next payday.
48. West Virginia
Minimum wage: $8.75/hour.
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: At least semi-monthly.
Final paychecks: Due within 4 business days after termination.
49. Wisconsin
Minimum wage: $7.25/hour (matches federal minimum).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: Monthly for salaried employees; more frequent pay schedules are allowed.
Final paychecks: Due by the next payday.
50. Wyoming
Minimum wage: $5.15/hour (lower than federal; federal minimum applies).
Overtime: Required for hours worked over 40 in a workweek at 1.5x the regular rate.
Pay frequency: No specific requirement.
Final paychecks: Due by the next payday.
Why Compliance Matters
Staying compliant with payroll laws is not just about avoiding fines; it’s about fostering trust with your employees and building a solid foundation for your Shopify store’s growth. Missteps in payroll can lead to audits, penalties, and reputational damage.
Conclusion
Managing payroll doesn’t have to be overwhelming. By understanding and adhering to state-specific payroll laws, you can focus on what you do best: growing your Shopify store.
If you have any questions or need personalized help, don’t hesitate to reach out. Schedule a call with Jacob by going to https://www.jacobcurtiscpa.com/7-shopify-mistakes-calendar. We're here to help you piece together financial freedom.
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