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The major factor influencing the wage applicable at a workplace is state law. State laws often set minimum wage requirements and regulations related to salary structures, which directly impact how much employers can pay their employees. These laws can vary significantly from one state to another, leading to differences in wage levels across regions. Additionally, state laws address wage-related issues such as overtime pay, wage theft protections, and other employment standards that shape compensation practices for employers within that jurisdiction.

While company reputation, market trends, and union agreements each have their roles in wage determination, they are generally influenced by or must comply with state laws. Company reputation can affect employee retention and attraction, but it does not formally dictate wage levels. Market trends reflect broader economic conditions and industry standards, which can lead to adjustments in pay but are not legally binding. Similarly, union agreements can influence wages for unionized workplaces, but they operate within the framework of existing state laws regarding labor practices.