Minimum-Wage Violations Hit 5.8 Million U.S. Workers

Minimum-wage violations reached a record high in 2025, with about 5.8 million US workers estimated to have been underpaid, according to research from the Federal Reserve Bank of Cleveland.

Millions of US workers were estimated to have experienced minimum-wage violations in 2025, according to Cleveland Fed research.

The findings suggest that weak enforcement may be contributing to the problem.

The researchers estimated that about 6.5 million workers nationwide were paid below the applicable minimum wage in 2025. Of those, approximately 5.8 million experienced what the researchers classified as minimum-wage violations.

The estimate is based on an analysis of workers in the 10 most populous US states and assumes those states are broadly representative of national patterns. 

Among workers experiencing minimum-wage violations, average underpayment was about $95 per week in 2025.

The figure was below the more than $110 weekly peak recorded in 2023 but remained well above historical levels. 

The federal minimum wage has remained at $7.25 an hour since July 2009, marking the longest period in US history without a federal increase. The Cleveland Fed noted that many states have since adopted minimum wages substantially above the federal rate.