Every December, churches everywhere are preparing for the busiest time of the year – Christmas. It’s a month-long celebration of Advent (which means arrival), often including children’s choirs, cantatas, cheerful decorations, and Christmas Eve services. Church attendance overflows as guests and visitors are much more receptive to attending a church service during this festive time of the year. Christmas is a time when churches go all out to pursue their mission. With all the activities and joyful, generous hearts, it’s no wonder December is the top-giving month of the year for most churches. While the ministry teams are busy working to pull off these Christmas miracles, the payroll team is busy determining if a new minimum wage law will impact their payroll and budget come January 1, leaving many churches asking what the minimum wage is and how it will impact the church.
Federal Minimum Wage
To answer those questions, we need to start with a little history on minimum wage. President Franklin D. Roosevelt enacted the National Industrial Recovery Act (NIRA) in 1933 in response to the ravages of the Great Depression on so many U.S. workers. However, the Supreme Court deemed that the executive branch did not have the power to implement these codes. Roosevelt was determined to pass a bill to set a minimum wage, establish a cap on the total hours worked per week, and define restrictions on child labor. On June 25, 1938, the FLSA (Fair Labor Standards Act) became law, establishing a 25-cent per hour minimum wage for employees.
Since its inception, the federal minimum wage has increased 22 times; the last change, in 2009, set the federal minimum wage at $7.25 per hour.
State Minimum Wage
While the federal minimum wage has not increased since 2009, many states set a minimum wage that exceeds the federal minimum requirement. Churches unsure of the minimum wage in their state can use the chart below (states not listed use the federal minimum wage):
| State | 2024 | 2025 | Effective Date |
| Alaska | $11.73 – | $11.91 $13.00** | 01/01/2025 07/01/2025** |
| Arizona | $14.35* | $14.70 | 01/01/2025 |
| Arkansas | $11.00* | $11.00* | N/A |
| California | $16.00* | $16.50* | 01/01/2025 |
| Colorado | $14.42* | $16.50 | 01/01/2025 |
| Connecticut | $15.69 | $16.35 | 01/01/2025 |
| Delaware | $13.25 | $15.00 | 01/01/2025 |
| Washington D.C. | $17.00* | $17.50 | 07/01/2024** |
| Florida | $12.00 | $14.00 | 09/30/2025** |
| Hawaii | $14.00 | $14.00 | N/A |
| Illinois | $14.00* | $15.00* | 01/01/2025 |
| Maine | $14.15* | $14.65* | 01/01/2025 |
| Maryland | $15.00* | $15.00* | N/A |
| Massachusetts | $15.00 | $15.00 | N/A |
| Michigan | $10.33 – | $10.56 $12.48 | 01/01/2025 02/21/2025 |
| Minnesota | $10.85* | $11.13* | 01/01/2025 |
| Missouri | $12.30 | $13.75 | 01/01/2025 |
| Montana | $10.30 | $10.55 | 01/01/2025 |
| Nebraska | $12.00* | $13.50* | 01/01/2025 |
| Nevada | $10.25* | $12.00* | 07/01/2024** |
| New Jersey | $15.13* | $15.49* | 01/01/2025 |
| New Mexico | $12.00 | $12.00 | N/A |
| New York | $15.00* | $15.50* | 01/01/2025 |
| Ohio | $10.45* | $10.70* | 01/01/2025 |
| Oregon | $14.20* | $14.70* | 07/01/2025** |
| Rhode Island | $14.00 | $15.00* | 01/01/2025 |
| South Carolina | $7.25 | $7.25 | N/A |
| South Dakota | $11.20 | $11.50 | 01/01/2025 |
| Vermont | $13.67 | $14.01 | 01/01/2025 |
| Virgina | $12.00 | $12.41 | 01/01/2025 |
| Washington | $16.25* | $16.66* | 01/01/2025 |
| West Virginia | $8.75* | $8.75* | N/A |
*Some counties and cities within the state have different minimum wages; check your city or county if your state has an asterisk.
**Mid-year adjustments
What About Churches?
The aftermath of the pandemic has negatively impacted the attendance and offerings of many churches. Since compensation typically consumes at least half of a church’s operating budget (45%-55%), churches looking to trim their costs often consider salaries. Before making cuts to compensation, here are a couple of considerations:
- Licensed or ordained ministers who meet the requirements are exempt from federal, state, and local wage laws. (Pro Tip: the role description for most operations positions, like the facilities, administrative assistants, bookkeepers, etc., do not meet the requirements and are entitled to make at least minimum wage.)
- Inflation and wage stagnation are real; pay the staff competitive wages. Listen to the Apostle Paul’s advice, “You shall not muzzle the ox while it is threshing,” and “The laborer is worthy of his wages.” -1 Timothy 15:18.
As the excitement of December comes to a close, churches need to ensure that they remain above reproach, especially when paying their staff. Take the time to check your church’s state, county, and city for upcoming wage changes.
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