Mississippi is one of the few states without its own state minimum wage law, therefore, employers must default to the federal minimum wage of $7.25 per hour.
What you’ll learn
What you’ll learn
Key takeaways
- There is no state minimum wage in Mississippi
- The federal minimum wage of $7.25 per hour applies
- Mississippi tipped employees are paid a lower state minimum wage of $2.13 per hour
Minimum wage laws, such as the Fair Labor Standards Act (FLSA), were established to protect workers from excessively low pay. While many states have enacted their own higher rates over the years, Mississippi continues to follow the federal standard.
Whether you are navigating tipped employee rules, tracking exemptions, or simply trying to understand your overall obligations as an employer, this guide covers everything you need to know to keep your Mississippi payroll perfectly compliant.
Current minimum wage in Mississippi
Currently, there’s no Mississippi state minimum wage and it is one of only five states without a law. In other locales, such as Colorado, Connecticut, and Florida, state minimum wages exceed the federal minimum wage. Employees in those states are legally entitled to the higher state minimum wage.
Because Mississippi doesn’t have a state minimum wage, the federal minimum wage of $7.25 per hour applies to all nonexempt employees. The federal minimum wage is established through the FLSA.
What this means
Under this law, employers can pay tipped employees a lower base wage of $2.13 per hour, as long as their total wages (including tips) equal or exceed the general minimum wage of $7.25 per hour.
In Mississippi, counties and cities cannot set higher minimum wages than the federal minimum wage. The state has preemption laws that prevent local governments from establishing minimum wage requirements. As a result, the 2026 minimum wage is $7.25 per hour for every nonexempt Mississippi employee.
Exceptions and special employees
There are certain exemptions to the FLSA’s minimum wage and overtime requirements. For example, outside sales employees may be exempt.
- Full-time students
- Student learners in vocational training programs
- New hires under 20 years old
Employees in these categories are entitled to an applicable subminimum wage. The current subminimum wage for new hires under the age of 20 is $4.25 per hour for the first 90 consecutive calendar days from their hire date.
There’s a misconception that small businesses are all exempt from the regulations established in the FLSA. That is not the case. Generally, the FLSA does not cover businesses with annual sales or business done of less than $500,000. However, employees of these companies may still be covered if they’re engaged in interstate commerce, such as traveling to other states for work.
It’s an employer’s responsibility to determine whether the FLSA covers their enterprise or individual employees. Keep up to date with applicable federal and state payroll regulations to make sure your business stays compliant.
Tipped employee rules
Tipped employees in Mississippi have a separate, lower base minimum cash wage rate of $2.13 per hour, as established by the FLSA. However, their total earnings, including tips, must still meet the standard Mississippi minimum wage of $7.25 per hour.
Employers can claim up to $5.12 an hour in tips per tipped employee as tip credits toward each employee’s wage. If the tipped employee earns less than $5.12 per hour in tips, the employer must pay the difference, so the worker earns at least $7.25 per hour.
For example, say a Mississippi waiter works eight hours and earns $80 in tips. That’s $10 per hour in tips alone. The employer still must pay the employee $2.13 per hour but doesn’t owe more for that shift because the employee’s earnings with tips are well over the $7.25 per hour minimum wage.
Legislative watch: A $25 federal minimum wage?
Because Mississippi defaults to the federal minimum wage, state employers should keep a close eye on Washington. In April 2026, lawmakers introduced the Living Wage for All Act in the U.S. House of Representatives. If passed, for employers with more than 500 workers, the bill would gradually increase the federal minimum wage to $25 an hour by 2031. While this is currently just a proposal, any future federal increases will automatically become the new legal baseline for Mississippi employers. For now, the rate remains $7.25.
Overtime requirements
The FLSA also establishes overtime pay requirements. For every hour they work over 40 hours per week, employers must pay nonexempt workers at least time-and-a-half. It’s the employer’s responsibility to calculate overtime and pay nonexempt employees appropriately for the hours they work.
For example, a non-exempt employee who earns $8 per hour works 50 hours in a week. The employee pays the first 40 hours at the typical $8 per hour rate, equaling $320. For the remaining 10 hours worked beyond 40 hours, the employer owes the employee time-and-a-half, or $12 per hour. That’s an additional $120 in overtime compensation, for a total compensation of $440 for the week.
Did you know?
In 2025, Mississippi lawmakers pushed a bill that would have finally allowed cities to set their own local minimum wages and raised the state rate to $15. The bill failed to pass, meaning local governments are still legally prohibited from raising the baseline above $7.25.
Compliance tips for employers
Staying compliant with applicable Mississippi hourly pay and state overtime laws protects your business from fines and other legal consequences. Regularly audit your payroll processes to catch any issues before they become larger concerns. If necessary, consult HR professionals for guidance on payroll tax rates or other payroll regulations that apply to your business.
Implementing high-quality payroll tools is one of the best ways for businesses to ensure payroll compliance. Utilizing these tools helps to achieve consistent, accurate reporting and prevent wage violations.
Keep in mind that the minimum wage rate is just that, a legal minimum. You may choose to pay employees a higher rate. The $7.25 per hour minimum wage has not increased since July 2009, but the cost of living has risen significantly.
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The estimated living wage — the amount a full-time worker needs to cover their basic needs like housing, food, and transportation — in Mississippi in 2026 is $20.69 per hour. That’s much higher than the state of Mississippi’s minimum wage. Some employers voluntarily pay above the minimum wage to attract skilled staff, keep employees working at the company, and improve their productivity.
Pay your team, protect your business
Meeting the federal minimum wage requirements in Mississippi is just the first step in building a compliant, trustworthy workplace. When you take steps to ensure your staff is paid accurately — accounting for tip credits, training wages, and overtime — you protect your bottom line from penalties and build real trust with your team.
You don’t have to manage it all by hand. OnPay takes the stress out of payday by automating your wage calculations, tracking exemptions, and managing your payroll records. Passing the heavy lifting to a reliable software platform frees you up to focus on the big picture, giving you more time to focus on expanding your business.
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Jon Davis is the Sr. Content Marketing Manager at OnPay. He has over 15 years of experience writing for small and growing businesses. Jon lives and works in Atlanta.