Georgia Minimum Wage: What Most People Get Wrong About the $5.15 Rate

Georgia Minimum Wage: What Most People Get Wrong About the $5.15 Rate

You’re standing in a breakroom in Savannah or maybe a bustling kitchen in Atlanta, and you see that old, dusty labor law poster on the wall. You glance at the numbers. It says the Georgia state minimum wage is $5.15. You blink. You check your phone. It’s 2026. How on earth can a wage from the early 2000s still be on the books?

Honestly, it’s one of the weirdest quirks of employment law in the Deep South.

If you’re looking for a straight answer on what is minimum wage in the state of georgia, you won't find it in a single number. It’s a bit of a "choose your own adventure" situation, but the adventure usually ends at the federal rate.

The $7.25 Reality vs. the $5.15 Ghost

Here’s the deal. Georgia technically has one of the lowest state-level minimum wages in the entire country. At $5.15 per hour, it sits well below the federal requirement. However, for about 99% of workers in the Peach State, that $5.15 number is basically a ghost. It exists in the statutes, but it rarely touches a paycheck.

Why? Because of the Fair Labor Standards Act (FLSA).

This federal law says that if a state wage is lower than the federal wage, the federal wage wins. Since the federal minimum wage is $7.25 per hour, that is what almost every employer in Georgia has to pay. If your boss is involved in "interstate commerce"—which is a fancy legal term that covers almost everyone who uses a phone, the internet, or handles mail—they have to pay the $7.25.

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Basically, if your company makes more than $500,000 a year in sales, you’re getting the federal rate.

Who actually gets paid $5.15?

It’s a tiny group. We're talking about very small, local businesses that don't do business across state lines and have fewer than six employees. Think of a tiny, independent roadside produce stand or a very small family-run shop that only buys and sells locally. Even then, most of these owners pay more just to keep staff.

It’s kind of wild that the Georgia legislature hasn't touched this number since 2001. While other states like Florida are marching toward $15, Georgia remains anchored to a rate that wouldn't even cover a gallon of milk and a loaf of bread in today's economy.

Tipped Employees and the "Tip Credit" Shuffle

If you work in the hospitality industry, the math gets even more annoying. For servers, bartenders, and anyone else who "customarily and regularly" receives more than $30 a month in tips, the base pay is much lower.

In Georgia, the minimum cash wage for tipped employees is $2.13 per hour.

Wait, don’t panic yet.

The law doesn’t just let an employer walk away after paying you two bucks and some change. They are using something called a "tip credit." This allows them to count your tips toward their obligation to pay you the full $7.25 federal minimum.

  • Cash Wage: $2.13
  • Maximum Tip Credit: $5.12
  • Total Requirement: $7.25

If you have a slow Tuesday night and your tips don't bring your average hourly pay up to $7.25, your employer is legally required to make up the difference. You should never, under any circumstances, walk home with less than $7.25 for every hour you worked. If you do, that’s a wage violation. Period.

Common Exemptions You Should Know About

Not everyone fits into the $7.25 or $2.13 buckets. Labor law is full of "except for that" clauses.

  1. The Student-Learner Program: High school students or vocational students can sometimes be paid 75% of the minimum wage if they are part of a bona fide vocational training program.
  2. The "Youth Minimum Wage": Employers can pay workers under the age of 20 a lower rate of $4.25 per hour for the first 90 consecutive calendar days of employment. It’s a "training" rate. Once those 90 days are up, or the person turns 20, the pay has to jump to the full rate.
  3. Agriculture and Seasonal Work: Farmworkers and employees at certain seasonal camps or amusement parks often fall into different categories where the standard minimum wage doesn't apply.
  4. Executive and Professional Roles: If you’re on a salary and you manage people, you’re likely "exempt." This means you don't get hourly minimum wage or overtime, provided you earn at least the federal salary threshold (which is currently $684 per week, though this is a frequent topic of legal debate and potential increases).

Why Georgia Hasn't Raised the Rate

You’ll hear a lot of talk at the State Capitol in Atlanta about "business-friendly" environments. The logic used by many lawmakers is that keeping the state minimum low—or non-existent—allows the market to dictate wages. They argue that a forced increase would hurt small businesses in rural areas where the cost of living is lower than in Midtown Atlanta.

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On the flip side, advocacy groups points out that $7.25 (the de facto rate) hasn't moved since 2009. That is over 15 years without a raise. When you account for the inflation we've seen recently, $7.25 in 2026 buys significantly less than it did back then.

Interestingly, even without a law change, many "entry-level" jobs in Georgia now start at $12 to $15 an hour. Competition for workers has done what the law hasn't. If you walk into a Buc-ee's or a QuikTrip, you’re going to see starting wages that dwarf the state and federal minimums.

What to do if you’re being underpaid

If you realize your boss is only paying you the $5.15 state rate but the company is clearly large enough to fall under federal law, you have options. You don't just have to take it.

First, talk to them. Sometimes it’s a genuine mistake by a small payroll department. If that doesn't work, you can file a complaint with the U.S. Department of Labor's Wage and Hour Division. They handle these claims because, as we discussed, it's usually the federal law that's being broken. Georgia’s own Department of Labor actually doesn't handle most individual wage disputes; they mostly deal with unemployment insurance.

Actionable Steps for Georgia Workers and Employers:

  • Check Your Status: Determine if you are an FLSA-covered employee. If your company does more than $500k in annual business, you are.
  • Audit Your Paystubs: Tipped workers should ensure their "total pay" (cash + tips) divided by "total hours" never dips below $7.25.
  • Watch the 90-Day Mark: If you were hired at the $4.25 youth rate, set a calendar reminder for your 91st day to ensure your raise kicks in.
  • Keep Records: Always keep your own log of hours worked. Don't rely solely on the company's digital punch clock.

Knowing what is minimum wage in the state of georgia is really about knowing which law applies to your specific chair. While the $5.15 rate is a weird historical artifact, the $7.25 federal floor is the real safety net for most.