Georgia Minimum Wage 2026: $7.25 Federal Rate Applies, State Law Is $5.15

The Georgia minimum wage that almost every employer must pay is $7.25 per hour, the federal rate. Georgia's own statute sets a state minimum of $5.15, one of only two states with a rate below the federal figure, but that number only applies in the rare case of an employer not covered by the Fair Labor Standards Act. The Georgia Department of Labor puts it this way: "Georgia's minimum wage is $5.15 per hour, however, with some limited exceptions, the federal minimum wage rate applies." Tipped employees follow the federal rules: $2.13 in cash plus a tip credit of up to $5.12.

Current Georgia Minimum Wage

Georgia's Minimum Wage Law, O.C.G.A. 34-4-3, sets a state rate of $5.15 per hour. That figure has not changed since 2001, and because it is lower than the federal $7.25, the state rate has been irrelevant for most workers since the federal minimum passed it in 2007.

The federal Fair Labor Standards Act covers any enterprise with $500,000 or more in annual sales, plus any employee who individually engages in interstate commerce, which includes handling goods shipped from other states, processing credit card payments, or making interstate phone calls. That reach is broad enough that nearly every Georgia business is covered, and every covered employee is owed at least $7.25.

The state rate could matter for a very small, purely local business with fewer than six employees or annual sales of $40,000 or less, which the Georgia statute exempts from its own law, and which might also fall outside the FLSA. Even then, the employer would owe the state $5.15 only if the business meets the statute's coverage test. In practice, employers should treat $7.25 as the floor and confirm with counsel before paying anything less.

Georgia Minimum Wage vs Federal Minimum Wage

	Georgia state law	Federal (FLSA)
Standard hourly minimum	$5.15	$7.25
Who it covers	Employers with 6 or more employees and more than $40,000 in annual sales, not covered by the FLSA	Enterprises with $500,000 or more in sales, plus individual interstate commerce coverage
Tipped cash wage	Not separately set; federal rules apply	$2.13
Maximum tip credit	Federal rules apply	$5.12
Annual adjustment	No	No
Local rates allowed	No, preempted	Not applicable

Where both laws apply, the employee gets the higher rate, which is always the federal $7.25 today. Georgia is one of five states (with Alabama, Louisiana, Mississippi, South Carolina, and Tennessee) where the federal rate effectively is the state rate, and one of two (with Wyoming) whose statute names a figure below $7.25.

Tipped Minimum Wage in Georgia

Georgia's statute does not set a separate tipped rate, so the federal tip credit rules apply to FLSA-covered employers. Employers may pay a cash wage of $2.13 per hour and take a tip credit of up to $5.12, as long as the employee's tips bring them to $7.25 for every hour worked in the workweek. If tips fall short, the employer pays the difference.

Federal conditions apply in Georgia:

• The employee must be told about the tip credit before it is taken.
• Employees keep their tips, apart from a valid tip pool among tipped workers.
• The 2021 federal rule on side work limits the tip credit when a tipped employee spends substantial time on non-tipped tasks.
• Overtime for tipped employees is calculated on $7.25, not $2.13, so the overtime rate is $10.88.

Georgia Minimum Wage Increase Schedule

Effective date	Effective rate in Georgia	Event
2001	$5.15	Georgia statute set at the then-federal rate
July 24, 2007	$5.85	Federal step 1 overtakes the state rate
July 24, 2008	$6.55	Federal step 2
July 24, 2009	$7.25	Federal step 3, still in force
2010 to 2026	$7.25	No change

Bills to raise Georgia's state minimum are introduced in most sessions of the General Assembly and have not advanced. No increase is scheduled for 2027.

Local Minimum Wages in Georgia

None. Georgia law prohibits local governments from requiring private employers to pay a minimum wage above the state rate. Atlanta, Savannah, Augusta, and Columbus all use $7.25. Local governments may set higher pay for their own employees, and Atlanta has done so, but private employers are not affected.

Who Is Covered and Who Is Exempt

Because the federal rate governs, the FLSA's coverage and exemption rules are what matter in Georgia. Employees typically exempt from the federal minimum wage or overtime include:

• Bona fide executive, administrative, professional, computer, and outside sales employees who meet the duties tests and, where required, the $684 per week salary threshold
• Certain farm workers on small farms
• Casual babysitters and companions for the elderly
• Employees of certain seasonal amusement or recreational establishments

Georgia's own statute additionally exempts employers with five or fewer employees, employers with $40,000 or less in annual sales, domestic employees, farm owners and their employees, tipped employees, students, and a few other categories, but those exemptions only affect the $5.15 state rate, not the federal $7.25. See exempt vs non-exempt employees for the classification tests.

Overtime and the Minimum Wage

Georgia has no state overtime law. The FLSA rule applies: 1.5 times the regular rate after 40 hours in a workweek, with no daily overtime.

For a minimum wage employee working 45 hours:

• 40 hours at $7.25 = $290.00
• 5 overtime hours at $10.88 = $54.38
• Weekly gross pay = $344.38

Run other rates through the overtime calculator, and see overtime pay laws by state.

What a Minimum Wage Worker Earns in Georgia

Schedule	At $7.25
40-hour week	$290.00
Month (173.33 hours)	$1,256.64
Year (2,080 hours)	$15,080

Gross pay before taxes. Convert any rate with the salary to hourly calculator, and see what gross pay includes.

Common Minimum Wage Mistakes in Georgia

Because the state figure is lower than the federal one, Georgia produces a particular set of errors:

• Paying $5.15 on the strength of the state statute. Unless the business is genuinely outside FLSA coverage, which requires no interstate commerce at all, the federal $7.25 applies. Card payments alone usually establish coverage.
• Skipping the tip credit notice. Federal law requires employers to tell tipped employees about the credit before taking it. Without the notice, the employer owes the full $7.25 in cash for every hour.
• Ignoring the dual-jobs rule. Servers who spend long stretches rolling silverware, cleaning, or prepping cannot be paid $2.13 for that time under the 2021 federal rule.
• Using the youth wage past 90 days. The $4.25 youth rate ends after 90 consecutive calendar days from the first day of work, or on the employee's 20th birthday, whichever comes first, and it cannot be used to displace other workers.
• Rounding time in the employer's favor. Rounding punches to the quarter hour is allowed only if it is neutral over time; systematic rounding down is a wage violation at any rate of pay.

Employer Compliance Checklist

1. Pay at least $7.25 per hour unless you have confirmed with counsel that your business is outside FLSA coverage.
2. For tipped employees, pay at least $2.13 in cash, give the required tip credit notice, and verify weekly that tips bring each employee to $7.25.
3. Calculate overtime on the full $7.25 for tipped employees.
4. Post the federal FLSA minimum wage poster; Georgia does not issue a separate state poster for the $5.15 rate.
5. Record hours worked accurately with a time card calculator or time tracking software, and keep payroll records for three years.
6. Review the Georgia labor law guide for the state's rules on final pay, child labor, and breaks.

Frequently Asked Questions

What is the minimum wage in Georgia in 2026?

$7.25 per hour for nearly all employees, because the federal rate overrides Georgia's $5.15 state minimum.

Why is Georgia minimum wage $5.15?

The state statute was set at $5.15 in 2001 and never updated. Federal law requires the higher rate where both apply, so $7.25 governs.

Is Georgia raising the minimum wage in 2027?

No increase is scheduled at the state or federal level.

What is the tipped minimum wage in Georgia?

$2.13 per hour in cash, with a tip credit of up to $5.12, under federal rules.

Can Atlanta set its own minimum wage?

Not for private employers. Georgia law preempts local minimum wage ordinances.

Who can legally be paid $5.15 in Georgia?

Only employees of employers that are covered by the Georgia statute but not by the FLSA, which is rare. Most small businesses are FLSA-covered through interstate commerce.

How much is Georgia minimum wage per year?

$15,080 for a full-time employee working 2,080 hours at $7.25, before taxes.

Does Georgia have a training wage?

Georgia has no state training wage. The federal youth wage of $4.25 applies to employees under 20 in their first 90 consecutive days with an FLSA-covered employer.

For a comparison with every other state, see minimum wage by state.

Sources

• Georgia Department of Labor, Minimum Wage
• US Department of Labor, State Minimum Wage Laws
• US Department of Labor, Minimum Wages for Tipped Employees