EMPLOYMENT LAW NEWS
Early 2025 Minimum Wage Updates
Employment Law and Compliance
This article provides a recap of minimum wage updates coming soon and the information provided in GovDocs’ recent webinar Get Ready for 2025: Minimum Wage Updates and Trends with Dana Holle, GovDocs Associate Counsel.
Last week, GovDocs Associate Counsel, Dana Holle, presented an information packed webinar about minimum wage details including updates coming soon, salary threshold levels for exempt employees, status of ballot measures impacting minimum wage, and recent court decisions affecting minimum wage. If you missed it, here is an overview.
Minimum Wages Updating Jan. 1, 2025, through May 1, 2025
Holle provided in-depth detail on the minimum wage updates coming soon in twenty-one states and fifty-five cities and counties across the country.
You can see the updates in Holle’s blog post 2025 Minimum Wage Rates by State and in GovDocs’ Guide Review 2025 City & County Wage Updates.
In addition to the updates, Holle informed the audience of two jurisdictions that have passed new minimum wage ordinances higher than federal minimum wage:
- Burien, Washington which will implement a minimum wage rate of $21.16 per hour for Level 1 employers effective Jan. 1, 2025, and a minimum wage rate of $20.16 per hour for Level 2 employers effective July 1, 2025; and
- King County, Washington which will implement a minimum wage rate effective Jan. 1, 2025, of $ 20.29 for large employers (500 or more employees) and $18.29 for mid-sized employers and $17.29 for small employers (15 or less employees and less than $2 million annual gross revenue) for locations in the unincorporated areas of King County.
Salary Threshold Levels for Exempt Employees Update
A recent decision in a court case in Texas has vacated the 2024 Final Rule increasing the exempt salary threshold levels nationwide. Holle provided the detail that under this ruling, both the July 1, 2024, and Jan. 1, 2025, increases are no longer in effect, nor will any future increases scheduled under the Final Rule take effect. The federal exempt salary threshold level reverts to the pre-2024 level of $35,568 annually ($684 per week).
This does not negate the requirements at the state level, however, for those states with salary threshold levels above the federal level. So, employers in the following states need to be aware of and comply with the following exempt salary levels effective Jan. 1, 2025:
| State | Annual Exampt Salary Level Threshold Effective Jan. 1, 2025 |
|---|---|
| Alaska | $49,545.60 |
| California | $68,640.00
Computer Software Employees: $118,657.43 |
| Colorado | Proposed: $56,485.00
Highly Technical Computer Employees: $56485.00 |
| Maine | $43,951.00 |
| New York | $60,405.80 |
| New York City, Long Island & Westchester Counties | 64,350.00 |
| Washington | Large Employers: $77,968.80
Small Employers: $69,305.60 Hourly Computer Professionals: $58.31 per hour |
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Minimum Wage Ballot Measure Results
Holle provided a detailed and informative explanation of how ballot measures work and gave an update on the ballot measure results from the November election impacting minimum wages. The ballot measures in Alaska, Missouri, and the city of Everett, Washington are projected to pass and increase the minimum wage in those jurisdictions. The ballot measure in Portland, Maine which would amend their minimum wage ordinance by limiting the application of the emergency wage provision to only when the city of Portland has declared a state of emergency is also projected to pass.
Holle went on to advise that the ballot measures in the following jurisdictions are projected to fail: Arizona, California, Massachusetts, and in the city of Glendale, Arizona. Could it be we are beginning to see some minimum wage fatigue?
Recent Court Decisions
And then, finally, Holle provided the audience with helpful details about court decisions impacting wage rates.
In Colorado, the Colorado Supreme Court ruled in Hamilton v. Amazon.com Services LLC that holiday incentive pay must be included when calculating an employee’s regular rate of pay.
In Oklahoma, the Oklahoma Supreme ruled in State Chamber of Oklahoma v. Cobbs that a minimum wage ballot gradually increasing the minimum wage to $15 does not violate the state constitution and therefore, will be included on the ballot in the June 2026 primary election.
The DOL’s 80/20/30 final tip credit rule from 2021 has been vacated by the Fifth Circuit Court of Appeals.
And then Holle explained the quagmire of Michigan’s ballot initiatives and clarified that the minimum wage increases under the Improved Workforce Opportunity Act have been reinstated effective February 21, 2025 with the first increase in minimum wage to $10.56 effective January 1, 2025, followed closely by another increase on February 21, 2025 to $12.48 and subsequent increases every year on February 21 until 2029 when the minimum wage rate will be increased based on inflation.
Conclusion
As always, Holle provided the quintessential webinar about minimum wage updates and minimum wage news. She regularly provides these webinars twice a year – before the July 1 minimum wage updates and before the Jan. 1 updates. If you missed this one – make sure to attend the next one in 2025.
This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.
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