What is the minimum wage rate in Kansas in 2025? This is something important for business owners like you. Kansas minimum wage rates have been the elephant in the room for many years and business owners have always been conscious about it over time.

To make sure you are updated about it, we have created this guide to help you with the minimum wage rate in Kansas in 2025 and beyond.

What is the Kansas Minimum Wage Rate in 2025?

The minimum wage rate in Kansas is the same as the federal minimum wage rate, $7.25 since 2010. It has not changed till now. The Kansas minimum wage rate is applicable to all employees except a few of them.

Employers have the option to take a “tip credit” of up to $5.12 per hour for tipped employees. However, these employees must still receive a minimum hourly wage of $2.13. In Kansas, a tipped employee is defined as someone who receives more than $20 in tips per month, ensuring that workers are compensated fairly for their service.

For student workers and interns, certain employers—like universities and colleges offering work-study programs—can pay 85% of the standard minimum wage, which equates to $6.16 per hour. This rate applies to students working up to 20 hours per week, providing them with valuable experience while still earning a fair wage. 

Additionally, new employees under the age of 20 are eligible for a training wage of just $4.25 per hour during their first 90 days on the job. This wage offers employers an opportunity to train new talent while maintaining a lower initial cost. 

Under the Fair Labor Standards Act (FLSA), certain employees are classified as “exempt” from minimum wage and overtime rules. This means they may not be entitled to the same pay protections as other workers, depending on their job duties and salary. These include jobs like farm workers, seasonal workers, newspaper deliverers, babysitters, and many other jobs exempt from both the state and federal law minimum wage rate law.

Federal contractor employees saw a wage adjustment in 2024, raising the minimum pay to $17.20 per hour. As we move into 2025, this rate is expected to remain or be adjusted based on economic conditions, continuing the focus on fair compensation for federal contract workers.

How should Small Business Owners Prepare for Changes to the Kansas Minimum Wage Rate?

Small businesses always look for budget-friendly options and a sudden increase in wages can disrupt their financial plan. Therefore, if you own a small business in Kansas you should be prepared for changes in wages, and here is what you can do to manage the change:

1. Audit Your Current Payroll Practices

You need to conduct a comprehensive review of your current payroll to identify positions impacted by minimum wage changes. Evaluate how these adjustments may affect your overall labor costs, including overtime rates, tipped employees, and part-time workers.

Pro Tip: Use payroll software like Gusto, QuickBooks Payroll, and Paychex Flex for wage tracking to automatically update changes to comply with laws.

2. Reevaluate Pricing and Profit Margins

Rising labor costs often mean smaller profit margins. In that case, review your pricing strategy and product/service costs. Now, identify areas where slight price adjustments can maintain profitability without driving away customers.

Pro Tip: Focus on providing high-value offers to justify price changes, emphasizing quality and service.

3. Improve Employee Efficiency

With higher labor costs, employee productivity becomes crucial. When you are paying a higher price, you should invest a bit in training, streamline operations, and implement performance incentives to get the best return on your labor investment.

Pro Tip: You can use task management tools like Basecamp, Trello, ClickUp, and more to track employee efficiency and eliminate redundancies. 

4. Give Automation and Technology a Chance

In this modern time, automation is the key. You shouldn’t ignore it. I highly suggest you explore cost-effective automation options to reduce dependency on manual labor. From customer service chatbots to automated scheduling tools, technology can offset rising costs while maintaining service levels.

Pro Tip: Start small by automating repetitive tasks to gauge savings and employee adaptability.

5. Plan for Tipped Employee Adjustments

For businesses relying on tipped employees, ensure their combined wages and tips meet the new minimum standards. Track tip pooling practices to ensure compliance while maintaining employee satisfaction.

Pro Tip: Offer training on upselling techniques to help tipped employees increase earnings.

6. Budget for Employee Retention

A higher minimum wage may lead to more competition for workers. Prioritize employee retention through benefits like flexible scheduling, professional development, or performance bonuses to reduce turnover costs.

Pro Tip: Build a clear growth path for employees, making your business an attractive long-term workplace.

7. Seek Tax Credits and Local Resources

Many states, including Kansas, offer tax credits or programs to offset increased labor costs for small businesses. Research grants or training funds provided by local or federal initiatives.

Pro Tip: Work with a financial advisor to identify opportunities for tax relief and incentives.

8. Communicate with Stakeholders

Inform employees about the changes, explaining how it will affect them and your business. Proactively communicate adjustments to your customers if pricing changes are necessary.

Pro Tip: Frame price increases as a commitment to fair pay and community support to build goodwill.

By taking these proactive steps, small business owners can mitigate the financial impact of wage increases while fostering a sustainable and productive work environment.

FAQs

• What is the lowest salary in Kansas?

Kansas has the lowest salary same as the Federal minimum wage rate, 7.25$. However, there are exemptions to the minimum wage rate like tipped employees, farmers, and seasonal workers.

• What is a livable salary in Kansas?

Kansas has a living wage of $20.35, a poverty wage of $7.24, and a minimum wage of $7.25.

• What state has the cheapest minimum wage?

Georgia and Wyoming have an hourly minimum wage rate of $5.15. This is the lowest minimum wage rate in the USA.

• What country pays the most per hour?

Luxembourg leads the world with the highest minimum wage. Skilled workers aged 18 and older earn at least EUR 17.83 per hour.