The Wyoming minimum wage stands as one of the lowest in the United States, creating a unique situation for both workers and employers in the state. While state law sets a lower wage standard, most workers are actually entitled to a higher pay rate under the federal Fair Labor Standards Act (FLSA). This dual system makes it critical for employers to understand the differences between state and federal wage laws, including applicable rates and exemptions.
With this in mind, today’s post will cover everything you need to know about the Wyoming minimum wage, including its history, current rates, and exemptions. We will also explore other important state wage laws you should be aware of and share best practices to help you ensure compliance and fair compensation in your business.
- U.S. Minimum Wage Framework
- What Is the Federal Minimum Wage?
- Wyoming Minimum Wage: Current Rates
- Wyoming Minimum Wage: Exemptions
- Additional Wyoming Wage Laws
- Who Enforces Wyoming’s Wage Laws?
- Best Practices for Wage Law Compliance
- Simplify and automate payroll management with Factorial🚀
U.S. Minimum Wage Framework
Let’s start with the basics: how minimum wage works in the U.S.
The minimum wage in the United States is a complex system with multiple tiers, each set by a different level of government: federal, state, and municipal. This progressive approach aims to ensure that workers across the country receive a fair wage in line with local economic conditions.
Here’s everything you need to know.
Federal Minimum Wage
As the baseline, the federal minimum wage is the lowest hourly rate that employers can legally pay their employees. It is set by the Fair Labor Standards Act (FLSA) and was last raised in 2009 to $7.25 per hour. This rate ensures that employers comply with a basic level of compensation regardless of their location or industry.
State Minimum Wages
Recognizing regional variations in state economies and the cost of living, there are now many state minimum wage laws that set the threshold higher than the federal rate. These state-level mandates ensure that workers in higher-cost areas receive a wage that reflects their cost of living. For example, the minimum wage is $12.30 per hour in Missouri, $12.00 per hour in Hawaii, and $16.28 per hour in Washington State (the highest rate in the country).
Municipal Minimum Wages
To further address regional economic realities, some cities and counties have implemented local minimum wage mandates that are higher than both federal and state rates. This approach ensures that workers in urban centers, where the cost of living is often higher, receive a wage that reflects their specific economic environment.
Industry Minimum Wages
Finally, in addition to regional differences, the minimum wage can also vary based on industry. For example, the minimum wage for tipped workers is typically lower than the minimum wage for non-tipped employees. This is because many states expect tipped workers to receive a significant portion of their income from tips. However, in some states, employers are required to make up the difference if the employee’s hourly wage plus tips does not equal at least the minimum wage.
What Is the Federal Minimum Wage?
Before we explore the Wyoming minimum wage, let’s take a look at the federal minimum wage to help us understand the broader legal framework that impacts the state.
The federal minimum wage is set by the Fair Labor Standards Act (FLSA), a law that establishes the minimum hourly wage that employers must pay most workers across the United States. The Act, which also governs overtime pay, recordkeeping, and child labor standards, applies to all eligible (non-exempt) employees working in the private sector and Federal, state, and local governments.
FLSA Eligibility
So how do you know if an employee is classified as exempt or non-exempt from the FLSA?
Essentially, you need to consider the following:
- Salary level. Are you paying the employee more than $43,888 per year?
- Salary basis. Do you offer them a guaranteed minimum compensation amount, regardless of the hours they work? (salary vs. hourly wage)
- Duties. Have you contracted them to perform an exempt job duty? (Professional duties that require specialized education; executive duties such as supervising a team; or administrative duties that require the use of discretion and judgment)
If an employee meets any of the above criteria, then they are considered exempt from the FLSA, and you have no obligation to pay them the higher federal minimum wage or offer overtime. However, if your employees are non-exempt (they do not meet any of the above criteria) then you must pay them a rate of $7.25 per hour (higher than the Wyoming minimum wage of $5.15 per hour).
This distinction is crucial for employers in Wyoming, as it determines whether you must follow federal or state wage guidelines.
Wyoming Minimum Wage: Current Rates
As we have just seen, the federal minimum wage establishes a baseline that supersedes Wyoming’s state minimum wage in most cases.
But what if an employee isn’t covered by the FLSA (i.e. they are not eligible under federal guidelines)? What state wage laws apply in this instance?
In cases where an employee is not covered by the FLSA, the state’s minimum wage laws come into play. In other words, employees are subject to the Wyoming minimum wage rate, which is currently set at $5.15 per hour for untipped employees and $2.13 per hour for tipped workers.
These lower state rates only apply to workers whose employers do not engage in interstate commerce or do not meet the revenue threshold for FLSA coverage. However, these cases are relatively rare, as most businesses in Wyoming are covered by federal wage laws. For the vast majority of employees, the higher federal minimum wage standards apply.
Wyoming Minimum Wage: Exemptions
The state’s wage laws include several exemptions that allow specific categories of workers to be paid less than the federal and Wyoming minimum wage. These exemptions apply to certain industries, occupations, and employee classifications, in line with federal guidelines and state-specific rules.
Specific exemptions include the following:
- Small employers. Businesses that do not engage in interstate commerce or have annual gross revenues below $500,000 are not subject to the federal Fair Labor Standards Act (FLSA). This means they can pay the lower Wyoming minimum wage rate ($5.15 per hour).
- Tipped employees. Workers who earn a significant portion of their income from tips can be paid a cash wage of $2.13 per hour, as long as their tips bring their total earnings up to at least $7.25 per hour (or $5.15 under Wyoming state law for non-FLSA covered employees).
- Agricultural workers. Certain farm and ranch workers are exempt from minimum wage requirements under both federal and state law. This exemption applies to employees primarily engaged in farming activities (especially for smaller farms).
- Domestic workers. Individuals who provide services in private homes, such as caregivers and housekeepers, are usually exempt from Wyoming minimum wage, depending on the scope of their employment and hours worked.
- Non-profit organizations. Employees of charitable, educational, or religious non-profit organizations are exempt from Wyoming minimum wage requirements under specific conditions, particularly if the organization does not engage in commercial activities.
- Seasonal and recreational employees. Employees working in seasonal or recreational establishments (such as summer camps or amusement parks) are usually exempt from both state and federal minimum wage laws.
Additional Wyoming Wage Laws
Aside from the Wyoming minimum wage, the state has a number of additional wage laws that employers need to understand as these can have an impact on an employee’s wages.
Let’s explore these Wyoming wage laws in a bit more detail so you can make sure your employee handbook meets all requirements.
Overtime Pay
Wyoming does not have its own overtime laws, so the federal Fair Labor Standards Act (FLSA) governs overtime for most workers. Under the FLSA, non-exempt employees are entitled to overtime pay at 1.5 times their regular hourly rate (time and a half) for any hours worked beyond 40 in a workweek. Certain employees, such as those in executive, administrative, or professional roles who meet the criteria we saw above, are exempt from overtime. Employers must ensure they correctly classify employees as exempt or non-exempt to avoid legal issues.
Wage Payment Law
Wyoming law requires employers to pay employees their wages at least once a month (semi-monthly, monthly or biweekly pay). Additionally, employers must provide final paychecks to terminated employees within five business days after their final day of employment. Deductions from wages for reasons such as damaged property or shortages are prohibited unless there is a prior written agreement with the employee.
Ensuring timely and complete payment of wages helps protect workers’ financial security and prevents disputes over unpaid earnings. Employers must follow these regulations to avoid legal action and ensure a fair working environment.
Rest and Meal Breaks
Wyoming does not have state-specific laws requiring employers to provide rest or meal breaks for adult employees. However, under federal law, short rest breaks lasting 20 minutes or less are considered compensable work time and must be paid. Meal breaks, typically lasting 30 minutes or more, do not have to be paid, provided the employee is completely relieved from duty.
Although Wyoming law is silent on mandatory breaks, many employers offer meal and rest breaks as part of their company policy to promote employee well-being and productivity.
Pay Stubs
Wyoming law does not require employers to provide employees with pay stubs or itemized wage statements. However, federal recordkeeping laws under the FLSA require employers to keep detailed wage records, even if they are not required to issue them to employees.
Despite the lack of a legal mandate, many Wyoming employers voluntarily provide pay stubs to their workers, which can help maintain transparency and trust. Pay stubs typically include information such as hours worked, pay rates, deductions, and net earnings, helping employees track their wages and ensuring clarity in compensation.
Equal Pay Law
The Wyoming Equal Pay Act mandates that men and women performing the same work under similar conditions must receive equal pay. This law prohibits wage discrimination based on gender for jobs requiring equal skill, effort, and responsibility. Employers are not allowed to reduce wages to comply with equal pay requirements but must adjust salaries appropriately. Exceptions to this rule include pay differences based on seniority, merit, or production levels, which must be demonstrable. This aligns with the provisions of the federal Equal Pay Act.
Child Labor Laws
Wyoming follows federal child labor laws under the FLSA, restricting the types of work and hours that minors can perform. Generally, the minimum age for employment is 14 years old, and minors under 16 are limited in the hours they can work—particularly during the school year. For example, minors aged 14 and 15 cannot work more than 3 hours on school days or more than 18 hours in a school week. Additionally, minors are prohibited from working in hazardous occupations, such as mining, manufacturing, or operating heavy machinery. Wyoming’s child labor laws aim to protect young workers’ education and safety while allowing age-appropriate work experiences.
Recordkeeping Requirements
Wyoming defers to federal law under the FLSA when it comes to recordkeeping requirements. Employers must keep accurate records of employee information, including hours worked, wages paid, and any deductions made from pay. These records must be maintained for a minimum of three years. This includes data such as employee names, addresses, job classifications, hourly rates, and weekly hours worked.
Proper recordkeeping ensures transparency and helps employers comply with wage laws, providing essential documentation in the event of an audit or wage dispute. Failure to maintain accurate records can lead to penalties and legal issues for employers.
Who Enforces Wyoming’s Wage Laws?
Wyoming’s wage laws are enforced by both state and federal agencies, depending on the specific law in question.
At the state level, the Wyoming Department of Workforce Services (DWS), specifically its Labor Standards Division, is responsible for enforcing state wage laws. This includes the enforcement of the Wyoming minimum wage, wage payment regulations, and child labor laws. The DWS handles wage disputes, monitors employer compliance, and provides guidance on Wyoming-specific labor laws.
At the federal level, the U.S. Department of Labor’s Wage and Hour Division (WHD) oversees the enforcement of federal wage laws, including the Fair Labor Standards Act (FLSA). The WHD ensures compliance with the federal minimum wage, overtime pay, and child labor provisions, which often apply to businesses in Wyoming due to interstate commerce requirements.
Both agencies work to protect workers’ rights and ensure employers comply with the relevant wage laws.
Best Practices for Wage Law Compliance
Maintaining compliance with wage laws is critical for businesses to avoid legal issues and protect employee rights. Employers must understand and follow both state and federal regulations regarding minimum wage, overtime, and other pay-related rules. Factorial’s payroll software makes it easy to manage these requirements by automating the process.
Here are some best practices for wage law compliance and how Factorial can help.
How Factorial Can Help
- Keep up to date with wage law changes. Minimum wage rates and overtime laws can change. It’s important to stay updated. Factorial’s software automatically updates with the latest wage laws, ensuring your payroll is always correct and compliant.
- Classify employees correctly. Make sure employees are correctly classified as either exempt or non-exempt. This affects whether they qualify for overtime and whether you need to pay them the federal or state minimum wage. Factorial helps you categorize employees properly based on their roles and salaries. This way, your business stays compliant with both state and federal regulations.
- Accurate time tracking. Make sure you accurately track employee hours worked, especially for overtime. Factorial’s software tracks time worked, making it easy to calculate overtime and avoid errors.
- Ensure timely and accurate wage payments. Paying employees late or inaccurately can result in fines and damage employee trust. Factorial’s automated payroll processing ensures wages are calculated accurately and paid on time, reducing the risk of errors or delays.
- Maintain accurate payroll records. Keeping detailed and accurate payroll records is essential for complying with wage laws. Factorial’s payroll software automatically stores all necessary payroll data in a secure, organized manner. This ensures you can easily access records for audits, employee requests, or wage disputes.
By following these best practices and using tools like Factorial’s payroll software, your business can ensure compliance with wage laws, including federal guidelines and the Wyoming minimum wage, while maintaining accurate payroll processes and protecting employee rights.
