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January 8, 2025
Before you issue your employees’ first paychecks in 2025, make sure you are compliant with minimum wage laws. The following states have increased their minimum wage, effective January 1 ,2025, or will do so later this year.
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 set minimum wage based on an employer’s size. 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.
|
State |
Current Hourly Wage | Hourly Wage on January 1, 2025 |
Separate Minimum Wage for Tipped Employees? |
|
Alaska |
$11.73 |
$11.91 (will increase again, to $13.00, on July 1, 2025)
|
No |
|
Arizona |
$14.35 | $14.70 | Yes |
| California | $16.00 |
$16.50 (different rates apply to healthcare workers)
|
No |
|
Colorado |
$14.42 | $14.81 | Yes |
| Connecticut | $15.69 | $16.35 |
Yes |
|
Delaware |
$13.25 | $15.00 | Yes |
| Florida | $13.00 |
No increase on January 1, 2025, but minimum wage will increase to $14.00 on September 30, 2025
|
Yes |
|
Illinois |
$14.00 | $15.00 |
Yes |
|
Maine |
$14.15 | $14.65 |
Yes |
|
Michigan |
$10.33 |
$10.56 (will increase again, to $12.48, on February 21, 2025)
|
Yes |
|
Minnesota |
$8.85 for small employers; $10.85 for large employers
|
$11.13 for all employers |
No |
|
Missouri |
$12.30 | $13.75 |
Yes |
|
Montana |
$10.30 | $10.55 |
No |
|
Nebraska |
$12.00 | $13.50 |
Yes |
|
New Jersey |
$15.13 |
$15.49 (different rates apply to small employers and seasonal, agricultural, and long-term care workers)
|
Yes |
|
New York (other than New York City and Westchester, Nassau, and Suffolk counties)
|
$15.00
($16.00 in New York City and Westchester, Nassau, and Suffolk counties)
|
$15.50
($16.50 in New York City and Westchester, Nassau, and Suffolk counties)
|
Yes |
|
Ohio |
$10.45 | $10.70 |
Yes |
|
Oregon |
$13.70 (rural)
$14.70 (standard) $15.95 (Portland) |
No increase on January 1, 2025, but minimum wage increase will be determined on July 1, 2025
|
No |
|
Rhode Island |
$14.00 | $15.00 | Yes |
| South Dakota | $11.20 | $11.50 |
Yes |
|
Vermont |
$13.67 | $14.01 |
Yes |
|
Virginia |
$12.00 | $12.41 | Yes |
| Washington | $16.28 | $16.66 |
No |
Employers: Educate yourself about the requisite minimums in the cities, counties, and states in which you do business to ensure that you are compensating employees appropriately.
The author of this article, Patricia Tsipras, is a member of the Bar of Pennsylvania. This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice in Pennsylvania or any other jurisdiction, 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.
