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A Comprehensive Guide to State Payroll Laws for Shopify Sellers

Writer's picture: Jacob CurtisJacob Curtis

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): Governs minimum wage, overtime pay, and record-keeping requirements.

  • Federal Insurance Contributions Act (FICA): Requires employers to withhold Social Security and Medicare taxes from employees' wages.

  • Federal Unemployment Tax Act (FUTA): 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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