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December 21, 2023
A number of states are increasing their minimum wage as of January 1, 2024. Employers should take note of the following increases:
|
State |
Current Hourly Wage | Hourly Wage on January 1, 2024 |
Separate Minimum Wage for Tipped Employees?
|
|
Alaska |
$10.85 | $11.73 | No |
|
Arizona |
$13.85 | $14.35 | Yes |
| California | $15.50 | $16.00 |
No |
|
Colorado |
$13.65 | $14.42 (proposed) | Yes |
|
Connecticut |
$15.00 | $15.69 |
Yes |
|
Delaware |
$11.75 | $13.25 |
Yes |
| Hawaii | $12.00 | $14.00 |
Yes |
|
Illinois |
$13.00 | $14.00 |
Yes |
|
Maine |
$13.80 | $14.15 | Yes |
|
Maryland |
$12.80 for small employers; $13.25 for large employers | $15.00 |
Yes |
|
Michigan |
$10.10 | $10.33 |
Yes |
|
Minnesota |
$8.63 for small employers; $10.59 for large employers | $8.85 for small employers; $10.85 for large employers |
No |
|
Missouri |
$12.00 | $12.30 |
Yes |
|
Montana |
$9.95 | $10.30 |
No |
|
Nebraska |
$10.50 | $12.00 |
Yes |
|
Nevada |
$10.25 or $11.25, depending on health benefits | $12.00 |
Yes |
|
New Jersey |
$14.13 | $15.13 |
Yes |
|
New York |
$14.20 | $15.00 ($16.00 in New York City, Westchester, Nassau, and Suffolk counties) |
Yes |
|
Ohio |
$10.10 for large employers | $10.45 for large employers |
Yes |
|
Rhode Island |
$13.00 | $14.00 |
Yes |
|
South Dakota |
$10.80 | $11.20 |
Yes |
| Vermont | $13.18 | $13.67 |
Yes |
| Washington | $15.74 | $16.28 (highest minimum wage in the U.S.) |
No |
Employers also should be aware that other factors, such as the type of industry, may impact a state’s requisite minimum wage. For example, a number of states permit employers to pay tipped employees a lower minimum wage than non-tipped employees (see above). Other states differentiate between large and small employers when mandating a minimum wage, and the definition of “large” and “small” varies from state to state. For example, in Minnesota, “large” employers generate annual revenues of $500,000 or more; in Ohio, an employer is considered “large” if it generates annual gross receipts of $372,000 or more. Still other states mandate a higher minimum wage in certain cities or counties (e.g., New York) while in other states, specific cities have chosen to mandate a minimum wage that is higher than the state minimum (e.g., Arizona).
Five states have no state minimum wage: Alabama, Louisiana, Mississippi, South Carolina, and Tennessee. Georgia and Wyoming have a minimum wage of $5.15, which is below the federal minimum wage of $7.25 per hour. In all seven of these states, employers subject to the Fair Labor Standards Act must pay the federal minimum wage of $7.25 per hour.
Employers should educate themselves about the requisite minimums in the cities, counties, and states in which they do business to ensure they are compensating their employees appropriately.
*Special thanks to Ava Petrellese, our Paralegal, for her contributions to this article.
This newsletter is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice, nor does it establish an attorney-client relationship with any reader of the article where one does not exist. Always consult an attorney with specific legal issues.
