Wyoming is one of only two states, along with Georgia, with a minimum wage below the federal minimum of $7.25 per hour. This dual structure can be confusing. Employers in Wyoming may wonder which rate applies and how much they have to pay their employees.
What you’ll learn
What you’ll learn
Key takeaways
- Generally, the federal minimum wage rate of $7.25 per hour applies to most Wyoming workers
- When the FLSA does not apply, then the Wyoming minimum wage of $5.15 per hour comes into play
- The minimum wage for tipped employees is $2.13 per hour, as long as their earnings of tips combined with the cash wage equal at least $7.25 per hour, for employers with over $110,000 in gross annual sales.
The answer is straightforward. Most employees in Wyoming are covered by the federal minimum wage established by the Fair Labor Standards Act (FLSA). Wyoming employees who are not covered by the FLSA may be entitled to the state minimum rate of $5.15 per hour.
Understanding your obligations as an employer is key to avoiding penalties such as legal action and damage to your reputation. Learn how to determine whether you should apply the $7.25 per hour federal rate or the $5.15 per hour Wyoming minimum wage rate for your employees in the state.
What is the minimum wage in Wyoming in 2026?
Currently, the minimum wage in Wyoming is $5.15 per hour. It’s one of only two states with a minimum wage set below the federal rate. Wyoming has not changed its minimum wage since 2001.
Employers generally must pay the highest applicable minimum wage out of federal, state, and local minimums. Because Wyoming’s rate is below the federal minimum, employers in the state typically need to pay employees the higher federal rate of $7.25 per hour.
The Wyoming minimum rate only comes into play if the federal rate does not apply. Certain employers may be exempt from the FLSA, or just specific workers within an organization. Generally, enterprises that participate in interstate commerce are covered by the FLSA. There are some employee-specific exemptions to the FLSA, including:
- Some executive, administrative, and professional employees
- Outside sales employees
- Employees in certain computer-related jobs
- Employees of some seasonal organizations
- Some farmworkers
- Some babysitters and elderly companions
If your enterprise or a specific employee is exempt from the minimum wage as established by the FLSA, the Wyoming minimum wage may apply. Check the exemptions to the Wyoming wage regulations to see if the $5.15 per hour minimum applies in your circumstances.
For example, like the FLSA, Wyoming law also makes exemptions for domestic service employees in private homes. Some employees may be exempt from both the FLSA and Wyoming’s state minimum wage rules.
Given these overlapping federal and state exemptions, you might be wondering how Wyoming ended up with a base rate that falls below the national standard.
Why is Wyoming’s minimum wage lower than other states?
Wyoming’s minimum wage in 2026 is lower than all other states with a set minimum wage, except Georgia, which also has a minimum rate of $5.15 per hour. Compare rates and you can see each state’s minimum wage in our larger guide. Arizona, for example, has a minimum wage of $15.15 per hour, nearly three times Wyoming’s.
But why would Wyoming set such a low minimum wage, especially one below the federal minimum?
Wyoming implemented the $5.15 per hour minimum wage in 2001 and has not raised it since then. At the time, that rate was the same as the federal minimum wage. Many states update their minimum wage rates when the federal rate changes, but Wyoming has not for over 20 years.
Because the highest applicable minimum wage takes precedence, it may seem like Wyoming’s rate is pointless. However, Wyoming’s minimum wage still affects workers who are exempt from the FLSA or employed at exempt organizations.
What is considered a livable wage in Wyoming?
While the legal minimum wage in Wyoming sits at either $7.25 or $5.15 depending on FLSA coverage, the actual cost of living in the state is significantly higher.
According to MIT’s Living Wage Calculator, a single adult with no children needs to earn $21.45 per hour — or an annual income of $44,614 before taxes — just to cover basic living expenses like housing, food, medical care, and transportation in 2026.
This number increases for employees supporting a family. For example, a single adult with one child requires a living wage of $36.17 per hour (or roughly $75,227 annually) to make ends meet.
Because the mandated minimum wage falls below these estimates, many Wyoming employers choose to pay well above the $7.25 federal minimum wage. Offering a competitive, livable wage is one of the most effective ways for businesses to attract reliable talent, reduce turnover, and maintain a productive workforce.
Whether you choose to pay a livable wage or stick to the legal minimums, you must also account for specific payroll categories, including tipped staff and youth workers.
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Tipped employees, training wages, and exemptions
Tipped employees have a separate minimum wage under the FLSA. The federal minimum wage for tipped employees is $2.13 per hour as a cash base wage. That’s all employers have to pay tipped workers, as long as they earn enough in tips to bring their total pay to $7.25 per hour.
If the tipped employees earn less than $5.15 per hour in tips, it’s the employer’s opportunity to make up the difference. You can also see our employer’s guide to tipped wages to make sure you’re staying compliant.
There are a few other noteworthy rules included in the FLSA that may apply to workers or employers in Wyoming, such as:
- Youth minimum wage: Employers may pay workers under 20 years old no less than $4.25 per hour for their first 90 consecutive days on the job.
- Subminimum wage: Disabled employees, student learners, and full-time students employed in retail establishments, agriculture, or higher education organizations may be subject to subminimum wage provisions.
- Minimum wage exemptions: Outside sales employees, as well as executive, professional, and administrative employees, may be exempt from the FLSA minimum wage and overtime pay rules.
Understanding Wyoming’s minimum wage makes good business sense
If your business employs workers in Wyoming, you’ll want to be sure you’re complying with the applicable minimum wage laws. Start by checking the exemptions to the FLSA. You must pay employees at least the federal minimum wage of $7.25 per hour unless your organization or specific workers are exempt. Then, check whether any exemptions to Wyoming’s minimum wage laws apply to your business or workers. Stick to the highest minimum wage requirement that applies, whether that’s the federal $7.25 hourly or Wyoming’s $5.15 hourly wage.
The easiest way to stay compliant and simplify your payroll process is to use a payroll automation tool like OnPay. You’ll reduce wage calculation errors and have peace of mind that you’re staying compliant. Get started with OnPay today.
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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.