Key Takeaways
• Mississippi’s minimum wage in 2025 remains $7.25 per hour, matching the federal rate since 2008.
• Youth workers under 20 can earn $4.25/hour for the first 90 days of employment.
• Tipped employees have a base wage of $2.13/hour, with tips ensuring $7.25 total minimum pay.
Understanding and Complying with The minimum wage in Mississippi for 2025: A Step-by-Step Guide for Workers and Employers
The minimum wage is a critical part of employment law in every state, including Mississippi. Knowing the rules helps both workers and employers avoid legal trouble and ensures fair pay. In 2025, the minimum wage in Mississippi remains at $7.25 per hour, which is the same as the federal minimum wage. This guide will walk you through everything you need to know about the minimum wage in Mississippi, including who it applies to, exceptions, and what steps you should take to make sure you’re following the law.
Step 1: Understand the Purpose and Scope of the Minimum Wage in Mississippi
Before you look at the details, it’s important to know why the minimum wage exists and how it works in Mississippi.
- Purpose: The minimum wage is the lowest hourly pay that most employers can legally pay their workers. It’s meant to protect workers from being paid too little for their labor.
- Scope in Mississippi: Mississippi does not have its own state minimum wage law. This means the federal minimum wage applies to almost all workers in the state.
- Current Rate: As of July 6, 2025, the minimum wage in Mississippi is $7.25 per hour. This has not changed since 2008.
Time Estimate: 5 minutes to read and understand this section.
Step 2: Identify Who Must Be Paid the Minimum Wage
Not every worker in Mississippi is covered by the minimum wage law in the same way. Here’s how to figure out if you or your employees are covered:
2.1. General Rule
- Most workers in Mississippi must be paid at least $7.25 per hour.
- This includes full-time, part-time, and temporary workers.
2.2. Exemptions and Special Cases
Some workers are not covered by the standard minimum wage. Here are the main exceptions:
- Youth Workers: Workers under 20 years old can be paid $4.25 per hour for their first 90 consecutive days of employment.
- Full-Time Students: Students working in retail, service, agriculture, or higher education jobs can be paid 85% of the minimum wage ($6.16 per hour) if the employer has a special certificate from the U.S. Department of Labor.
- Tipped Employees: Workers who earn tips (like restaurant servers) can be paid a base wage of $2.13 per hour. However, their total pay (wages plus tips) must add up to at least $7.25 per hour. If not, the employer must make up the difference.
- Other Exemptions: Some seasonal workers, outside salespeople, and certain nonprofit employees may also be exempt.
Time Estimate: 10 minutes to review and determine coverage.
Common Pitfall: Employers sometimes forget to check if a worker qualifies for a lower wage under these exemptions. Always double-check the rules and get the right certificates if needed.
Step 3: Calculate Wages for Different Types of Employees
Knowing how to calculate the correct wage is key to staying compliant.
3.1. Standard Employees
- Hourly Wage: Pay at least $7.25 per hour for every hour worked.
- Overtime: For hours worked over 40 in a week, pay 1.5 times the regular rate (at least $10.88 per hour). This follows the federal Fair Labor Standards Act (FLSA).
3.2. Tipped Employees
- Base Wage: Pay at least $2.13 per hour.
- Tip Credit: If tips do not bring the total to $7.25 per hour, the employer must pay the difference.
- Recordkeeping: Keep accurate records of hours worked and tips received.
3.3. Youth and Student Workers
- Youth Wage: For workers under 20, pay at least $4.25 per hour for the first 90 days.
- Student Wage: With a Department of Labor certificate, pay full-time students at least $6.16 per hour.
Time Estimate: 15 minutes to set up payroll calculations for each employee type.
Troubleshooting Tip: If you’re unsure about which wage applies, check with the U.S. Department of Labor Wage and Hour Division for guidance.
Step 4: Follow Legal Requirements for Overtime Pay
Mississippi follows federal rules for overtime pay.
- Who Qualifies: Most hourly workers who work more than 40 hours in a week.
- Rate: Overtime must be paid at 1.5 times the regular hourly rate.
- Exemptions: Some salaried workers, managers, and certain professionals may be exempt from overtime.
Time Estimate: 10 minutes to review overtime eligibility and set up payroll.
Common Pitfall: Not paying overtime correctly is a common mistake that can lead to fines and lawsuits.
Step 5: Stay Informed About Legislative Changes
Even though the minimum wage in Mississippi has not changed since 2008, it’s important to keep up with possible new laws.
- Recent Attempts: In 2023, the Mississippi Minimum Wage Act (Senate Bill 2288) tried to raise the minimum wage to $10.50 by 2026. However, it did not pass.
- Current Status: No new minimum wage increases are expected in 2025.
- Local Laws: Mississippi law does not allow cities or counties to set their own minimum wage rates for private employers.
Time Estimate: 5 minutes per month to check for updates.
Troubleshooting Tip: Sign up for updates from the Mississippi Department of Labor or check the state legislature’s website regularly.
Step 6: Understand the Economic and Social Impact
Knowing the bigger picture helps both workers and employers make informed decisions.
- Purchasing Power: The $7.25 minimum wage has lost about 10% of its value since 2009 due to inflation.
- Living Wage: Many advocates say the current minimum wage is not enough to support a family, especially with rising costs for housing, food, and healthcare.
- Business Concerns: Some business groups worry that raising the minimum wage could lead to job losses or higher prices.
- Ongoing Debate: The discussion about raising the minimum wage in Mississippi continues, but no changes are expected soon.
Time Estimate: 10 minutes to read about the economic context.
Step 7: Prepare for Payroll and Recordkeeping
Accurate payroll and recordkeeping are essential for legal compliance.
7.1. For Employers
- Track Hours: Keep detailed records of all hours worked by each employee.
- Document Wages: Record the wage rate, tips (if any), and overtime for each pay period.
- Certificates: If you pay student workers a lower wage, keep a copy of the Department of Labor certificate on file.
- Review Regularly: Audit your payroll system at least once a year to make sure you’re following all rules.
7.2. For Workers
- Check Your Pay: Make sure you are being paid at least the minimum wage for every hour worked.
- Keep Records: Save your pay stubs and any written agreements with your employer.
- Ask Questions: If you think you’re not being paid correctly, talk to your employer or contact the Department of Labor.
Time Estimate: 30 minutes to set up or review payroll and recordkeeping systems.
Common Pitfall: Failing to keep proper records can make it hard to prove compliance if there’s a dispute or audit.
Step 8: Know Where to Get Help and More Information
If you have questions or need help, there are official resources available.
- Mississippi Department of Labor: For questions about state labor laws and certificates for student workers.
- U.S. Department of Labor Wage and Hour Division: For federal minimum wage, overtime rules, and complaint procedures. Visit the official minimum wage page for up-to-date information.
- Mississippi State Legislature: For updates on any new wage-related bills or laws.
Time Estimate: 5 minutes to find and bookmark these resources.
Step 9: Avoid Common Pitfalls
Mistakes with minimum wage compliance can be costly. Here are some common errors and how to avoid them:
- Paying Below Minimum Wage: Never pay less than $7.25 per hour unless the worker qualifies for a specific exemption.
- Ignoring Overtime Rules: Always pay overtime correctly for eligible workers.
- Misclassifying Employees: Don’t call someone an “independent contractor” or “exempt” unless they truly meet the legal definition.
- Missing Certificates: If you pay student workers less than the standard minimum wage, you must have the right certificate from the Department of Labor.
- Not Tracking Tips: For tipped employees, keep careful records to ensure total pay meets the minimum wage.
Troubleshooting Tip: If you’re unsure, consult with a labor law expert or contact the U.S. Department of Labor.
Step 10: Checklist Summary for Minimum Wage Compliance in Mississippi (2025)
Use this checklist to make sure you’re following all the rules:
For Employers:
– [ ] Pay at least $7.25 per hour to all covered employees.
– [ ] Pay youth workers under 20 at least $4.25 per hour for the first 90 days only.
– [ ] Pay full-time student workers at least $6.16 per hour with a valid certificate.
– [ ] Pay tipped employees at least $2.13 per hour and ensure total pay (with tips) is at least $7.25 per hour.
– [ ] Pay overtime at 1.5 times the regular rate for hours over 40 per week.
– [ ] Keep accurate records of hours, wages, tips, and certificates.
– [ ] Stay updated on any changes to minimum wage laws.
For Workers:
– [ ] Check that your hourly wage meets or exceeds the minimum wage.
– [ ] Track your hours and pay.
– [ ] Ask your employer about any pay you don’t understand.
– [ ] Contact the Department of Labor if you believe you’re not being paid correctly.
Additional Tips and Practical Guidance
- For Employers: Regularly review your payroll system and train managers on wage laws. This helps prevent mistakes and keeps your business in good standing.
- For Workers: Don’t be afraid to ask questions about your pay. If you’re unsure, reach out to the Department of Labor or a trusted community organization for help.
- For Both: Keep an eye on the news and official government websites for any updates to minimum wage laws. Even though no changes are expected in 2025, laws can change quickly.
Final Thoughts
The minimum wage in Mississippi for 2025 remains at $7.25 per hour, matching the federal minimum wage. There are specific rules for youth, students, and tipped workers, and it’s important to follow these closely. While there is ongoing debate about whether the minimum wage should be higher, no increases are expected this year. Both workers and employers should stay informed, keep good records, and use official resources to make sure they’re following the law.
As reported by VisaVerge.com, the lack of a state-specific minimum wage in Mississippi means that workers and employers must rely on federal rules, which have not changed in over a decade. This has real effects on families and businesses, especially as the cost of living rises. For more details and the latest updates, visit the U.S. Department of Labor’s minimum wage page.
By following the steps in this guide, you can make sure you’re meeting all legal requirements, avoiding common mistakes, and protecting your rights or your business.
Learn Today
Minimum Wage → The lowest legal hourly pay an employer can give most workers, protecting fair labor compensation.
Youth Workers → Employees under 20 years old allowed to be paid $4.25/hour during their first 90 days of work.
Tipped Employees → Workers earning tips who legally may receive $2.13/hour minimum base wage plus tips to reach $7.25.
Overtime Pay → Additional payment at 1.5 times regular hourly wage required for hours worked beyond 40 each week.
Department of Labor Certificate → Official authorization allowing employers to pay student workers less than the standard minimum wage.
This Article in a Nutshell
Mississippi’s minimum wage stays at $7.25 in 2025, matching federal law. Special wages apply to youth, students, and tipped workers, with strict payroll and overtime rules. Understanding and following these ensures fair pay and legal compliance for workers and employers across the state.
— By VisaVerge.com
