Idaho Minimum Wage for Employers: $7.25 Rate, Tipped Wage, Overtime and Final Pay

If you are hiring your first employee in Idaho, the wage rules can feel like a maze. The core answer is short: Idaho's state minimum wage is $7.25 an hour, and the state has few wage rules of its own beyond that. Tipped employees, training wages, overtime, and final paychecks each have their own requirements, and several of them depend on federal law or on specific sections of the Idaho Code. This guide covers the Idaho labor laws and employment laws you need to get payroll right, with the exact figures and the agency to call when a question is not settled.

This guide is informational only. It is not legal or tax advice. Wage and hour rules have exceptions and fact-specific tests, so consult a qualified employment attorney or CPA before you set pay practices for your business.

The Idaho minimum wage rate: $7.25 an hour

The Idaho minimum wage is $7.25 an hour. Idaho Code 44-1502(1) sets the state rate and requires it to conform to and track the federal minimum wage. In practice, that means the state rate has matched the federal floor, and any future change in federal law should be checked against Idaho's rate before you adjust payroll.

Idaho minimum wage 2026

For 2026, the Idaho minimum wage is $7.25 an hour. If your business pays hourly staff, set your lowest hourly rate at or above that figure. Paying below $7.25 is only permitted in the narrow cases described below, and each of those has its own conditions.

Idaho minimum wage 2027

The sources this guide is built on do not set a 2027 Idaho figure. Because the statute ties Idaho's rate to the federal minimum, any 2027 change depends on what federal law does. Treat $7.25 as the current rate, and confirm the 2027 figure with the Idaho Department of Labor before you finalize 2027 budgets and pay scales.

Local governments cannot set a higher minimum wage

Many employers ask whether a city can require more. Under Idaho Code 44-1502(4), cities and counties may not set a higher minimum wage. A business in Boise, Meridian, Idaho Falls, or Coeur d'Alene is subject to the same state rate as a business in a rural county. Local rules still matter for other licensing and permit questions, but they do not change the wage floor.

Tipped employees: the $3.35 cash wage and the shortfall rule

Idaho allows a lower cash wage for tipped employees, but the rules are strict. Under Idaho Code 44-1502(2), the employer must pay at least $3.35 an hour in cash wages. The tips are added to that cash wage, and if wages plus tips fall below the $7.25 minimum, the employer must make up the difference.

Three practical points follow from that rule:

• The shortfall is your responsibility. If a server's tips are low on a slow night, you owe the difference to bring their total hourly pay up to $7.25.
• You carry the burden of proof. The statute places on the employer the burden of proving what tips an employee received. Keep tip reports, point-of-sale tip records, and tip pool documentation for every pay period.
• Tip tracking is a payroll function. A spreadsheet that only records hours is not enough. Build a weekly check that compares cash wages plus reported tips against $7.25 for each tipped worker.

The training wage: $4.25 an hour for workers under 20

Idaho Code 44-1502(3) allows a training wage of $4.25 an hour for employees under age 20, but only during their first 90 consecutive calendar days of employment. Three conditions matter:

1. The employee must be under 20.
2. The lower rate applies only during the first 90 consecutive calendar days, counted from the start of employment.
3. An employer may not displace an existing worker to use the training wage. Replacing a current employee with a new hire at the lower rate is a violation, even if the new hire is a teen.

After the 90-day window closes, the employee must be paid the full $7.25 minimum or more. Put the start date and the day the 90 days end in each employee file so that the change is not missed.

Who is exempt from the Idaho minimum wage

Idaho Code 44-1504 lists exemptions from the state minimum wage. The categories named in the statute include:

• Bona fide executive, administrative, and professional employees
• Outside salespeople
• Domestic service workers
• Part-time workers under age 16, for up to 4 hours a day

An exemption depends on the specific job duties and pay structure, not just the job title. A "manager" who spends most of the shift stocking shelves may not qualify. Before you classify a role as exempt, check the duties against the statute and confirm the classification with an attorney, because a misclassification can leave you owing back wages.

Idaho overtime laws: federal FLSA rules apply

Idaho has no separate state overtime statute. That means the federal Fair Labor Standards Act (FLSA) governs overtime for Idaho employers. For non-exempt employees, the FLSA requires time and a half, which is 1.5 times the regular rate, for every hour worked over 40 hours in a workweek.

Several points trip up small employers:

• The test is the workweek, not the pay period. Overtime is measured over a fixed seven-day workweek that you define in advance. Hours from one workweek cannot be averaged against another.
• Exempt status is a federal test. Because Idaho has no separate overtime statute, the federal duties and salary tests decide whether an executive, administrative, or professional employee is exempt from overtime. Confirm those tests before you assume a salaried worker is exempt.
• Tipped overtime needs careful math. A tipped employee who works over 40 hours is still owed overtime, and the regular rate used to calculate it must reflect the rules for tipped wages. Confirm the method with your payroll provider or CPA.

Idaho final paycheck law: when final wages are due

The Idaho final paycheck law is found in Idaho Code 45-606. When an employee leaves, the wages owed are due by whichever of these comes first:

• The next regular payday, or
• 10 days after termination, with weekends and holidays excluded from the count.

The statute also sets a separate 48-hour deadline that runs from a written request for final wages. If a former employee asks for their final pay in writing, you have 48 hours to deliver it. Missing either deadline can expose you to a claim for the unpaid wages, so build a termination checklist that starts the final pay calculation on the day of separation.

A few practical habits prevent most final pay problems:

• Calculate final hours, unused paid time off that your policy pays out, and any tips owed on the day of departure.
• Note the date you received any written request, because the 48-hour clock starts then.
• Count weekends and holidays carefully when you apply the 10-day rule.

Idaho employment laws: where to get answers

Idaho's wage rules are short, but they interact with federal law, local rules, and your own pay policies. When a question is not settled by the statute, get an answer from the right source before you act.

Question	Rule or source
State minimum wage	$7.25 an hour (Idaho Code 44-1502(1))
Tipped cash wage	$3.35 an hour, with shortfall make-up (44-1502(2))
Training wage, under 20	$4.25 an hour for the first 90 consecutive calendar days (44-1502(3))
Overtime	Federal FLSA: time and a half over 40 hours a week for non-exempt employees
Final paycheck	Earlier of the next regular payday or 10 days after termination (weekends and holidays excluded), or 48 hours after a written request (45-606)
Wage questions	Idaho Department of Labor, 208-332-3579

For wage questions that the statute does not answer, call the Idaho Department of Labor at 208-332-3579. Ask for the answer in writing if the issue affects a pay decision, and keep a copy in your payroll file. The Department of Labor answers questions about how the rules apply, but the final decision on a specific situation is yours, and a licensed attorney is the right person to advise on a dispute.

A simple compliance checklist for Idaho employers

Before you run your first Idaho payroll, confirm each of these items:

1. Your lowest hourly rate is at least $7.25.
2. Every tipped employee's cash wage is at least $3.35, and a weekly check confirms that wages plus tips reach $7.25.
3. Any training wage at $4.25 is limited to workers under 20, lasts no longer than the first 90 consecutive calendar days, and does not replace an existing worker.
4. Each non-exempt employee is tracked by workweek, and overtime at time and a half is paid for hours over 40.
5. Exempt classifications are checked against the duties tests, not job titles.
6. A termination checklist meets the final paycheck deadlines and logs the date of any written request.
7. You have the Idaho Department of Labor number, 208-332-3579, saved for wage questions.

When to bring in a professional

Most small employers can handle a standard hourly payroll with the rules above. Bring in help when you face any of the following: a dispute over tip credits, a classification question for a salaried manager, a termination with unpaid commissions or bonuses, or a multi-state workforce where another state's wage law may also apply. An employment attorney can review your policies, and a CPA can confirm payroll tax treatment and the tipped overtime calculation.

Reminder: this guide is informational content, not legal or tax advice. Idaho Code sections cited here are summarized, so read the statute itself, and confirm current figures with the Idaho Department of Labor and a qualified professional before you rely on them.