EMPLOYMENT LAW NEWS
2024 State Minimum Wage Rates by State
Employers that operate across the U.S. know minimum wage rate management is a major challenge. The 2024 state minimum wage rates are no exception, with several updates on July 1, 2024.
Which states updated their minimum wage rates in Summer 2024?
While most states update their wage rates at the beginning of the year, two states (Oregon and Nevada) and Washington D.C. increased their minimum wage rates on July 1, 2024.
July 2024 Minimum Wage Updates
Oregon
The Beaver State has a unique, three-tiered system of minimum wage rates that updates on July 1 of each year. The applicable minimum wage tier depends on the employee’s workplace location within the state. Please note that Oregon prohibits taking a tip credit, so the state has no tipped employee wage.
Effective July 1, 2024, the wage rates in Oregon are as follows:
- Portland Metro Area – $15.95
- Standard Counties – $14.70
- Non-Urban Counties – $13.70
Portland Metro’s minimum wage applies to workers within the “urban growth boundary” in the state, which includes parts of Clackamas, Multnomah, and Washington counties.
Further, the standard minimum wage applies to workers in Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, and Yamhill counties as well as parts of Clackamas, Multnomah, and Washington that are outside the urban growth boundary described above.
Finally, the non-urban minimum wage applies to workers in Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler Counties.
Nevada
In Nevada, the state’s two-tiered minimum wage requirements are being eliminated on July 1, 2024. Nevada employers can no longer apply a lower minimum wage rate if they offer qualifying health benefits to their employees.
Accordingly, effective July 1, 2024, the following minimum wage rate applies to all covered employees:
- $12.00
Like Oregon, there is no separate tipped employee wage in Nevada.
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Washington D.C.
The nation’s capital will also see a minimum wage update on July 1, 2024, as follows:
- $17.50
- $10.00 (tipped employees)
As a reminder, Washington D.C. voters approved a ballot measure, known as Initiative 82, back in 2022, which gradually increases the tipped employee wage until it’s equal to the standard wage on July 1, 2027.
Existing State Minimum Wage Updates for 2024
Below are the state minimum wage rate updates for 2024.
Employers should remember, however, that other factors — such as industry type — may require them to pay a different wage rate.
Before getting to the 2024 state minimum wage rates, HR teams should be aware that there may also be associated updated labor law posters to display in conjunction with the new rates.
Alaska Minimum Wage 2024
Alaska has moved from scheduled rate increases to those based on the applicable Consumer Price Index (CPI). (This is also known as indexing.)
Alaska in mid-November 2023 announced its new rate for Jan. 1, 2024:
- $11.73
Also, Alaska does not have a separate minimum wage rate for tipped employees.
Arizona Minimum Wage 2024
Arizona has also moved to indexed rate increases.
Effective Jan. 1, 2024, the state’s rates are:
- $14.35
- $11.35 (tipped employees)
Employers should also note that there are new Jan. 1, 2024, rates in Flagstaff and Tucson to monitor.
Related: California $20 Fast Food Minimum Wage
California Minimum Wage 2024
In 2022, California became the first state to reach a $15 standard minimum wage (for large employers) and its cities continue to pass new wage laws.
Also, in 2023 California did away with its separate rates for large employers.
Now, effective Jan. 1, 2024, the California minimum wage for all employers is:
- $16
Employers should also note that there are several cities in California with their own rates, though some update July 1 each year.
Colorado Minimum Wage 2024
Colorado is somewhat unique in that it allows for a comment period after setting a preliminary minimum wage.
The rates for Jan. 1, 2024 are:
- $14.42
- $11.40 (tipped employees)
Note, too, that Colorado a few years ago gave cities the power to set their own minimum wage rates. Thus far, however, only two have — Denver and a nearby suburb, Edgewater, as well as the County of Boulder.
Connecticut Minimum Wage 2024
Minimum wage increases have bounced around the calendar in recent years.
But in 2024, they go up on Jan. 1, with the standard rate at:
- $15.69
However, tipped wages remain the same in Connecticut. As a reminder, Connecticut separates tipped employee wage into two categories — bartenders remain at $8.23 and waitstaff at $6.38.
Delaware Minimum Wage 2024
Delaware’s minimum wage is still on an increase schedule, and the state will reach the $15 benchmark in 2025.
For 2024, the standard minimum wage in Delaware is:
- $13.25
However, the state’s tipped minimum wage will remain the same, at $2.23.
Hawaii Minimum Wage 2024
When Hawaii initially passed its minimum wage law, its first increase went into effect in October 2022.
The state has since moved to increases at the start of the year. Effective Jan. 1, 2024, the standard minimum wage in Hawaii is:
- $14
But the state has complex rules regarding the minimum wage for tipped employees. See our previous blog on Hawaii minimum wage for more information.
Illinois Minimum Wage 2024
Illinois is also under scheduled minimum wage increases.
Effective Jan. 1, 2024, the minimum wage rates in Illinois are:
- $14
- $8.40 (tipped employees)
In Illinois, Chicago and Cook County also have their own minimum wage rates. (Though Cook County allows cities to opt out of the rate.)
Massachusetts Minimum Wage 2024
Massachusetts in 2023 joined the handful of states with a $15 minimum wage. However, it does not have an updated rate for 2024. It is included here because it has been updating on Jan. 1 regularly for several years.
Read: How Many States Have a $15 Minimum Wage?
Maryland Minimum Wage 2024
Maryland minimum wage is poised to hit the $15 mark a bit sooner than expected.
Maryland in 2019 passed a law to gradually increase minimum wage rates. For large employers (those with 15 or more workers), it was previously set to reach $15 on Jan. 1, 2025.
However, Maryland minimum wage will be $15 for employers of all sizes on Jan. 1, 2024, under new legislation passed in April 2023.
For tipped employees, the rate will remain at $3.63 in 2024.
Maryland is another state with local rates to monitor: Montgomery and Howard counties.
Maine Minimum Wage 2024
Maine’s minimum wage is under indexing.
Effective Jan. 1, 2024, the state’s rates are:
- $14.15
- $7.08 (tipped rate)
Maine also has local rates in Portland and Rockland.
Michigan Minimum Wage 2024
Despite activity in the courts regarding Michigan minimum wage in several months ago, the state is moving ahead with new rates for 2024.
Effective Jan. 1, 2024, the state’s rates are:
- $10.33
- $3.93 (tipped rate)
Minnesota Minimum Wage 2024
Minnesota has two separate rates for large and small employers.
The state’s 2024 rates are:
- $10.85 (large employers)
- $8.85 (small employers)
Minnesota does not allow employers to take a tip credit.
Employers should note that St. Paul and Minneapolis both have minimum wage ordinances, as well.
View: Minimum Wage Compliance Resources
Missouri Minimum Wage 2024
In Missouri, its minimum wage will be indexed starting in 2024.
The state only recently announced the new rates, which are:
- $12.30
- $6.15 (tipped employees)
Montana Minimum Wage 2024
With a relatively modest increase in store for employers, Montana’s minimum wage, effective Jan. 1, 2024, is:
- $10.30
The state does not have a separate rate for tipped employees.
Nebraska Minimum Wage 2024
Following a successful 2022 minimum wage ballot measure, Nebraska is another state moving toward a $15 minimum wage (in 2026).
Effective Jan. 1, 2024, the standard rate in Nebraska is:
- $12
However, the state’s tipped rate will remain at $2.13, the federal level.
New Jersey Minimum Wage 2024
New Jersey is another state that will breach the $15 threshold.
Effective Jan. 1, 2024, the standard rate for large employers is:
- $15.13
The state has no 2024 change to its tipped rate, which will remain at $5.26.
Notably, there are no local jurisdictions in New Jersey with their own minimum wage rate, though the state does have a specific rate for employees at long-term care facilities.
New Mexico Minimum Wage 2024
While New Mexico updated its rates on Jan. 1, 2023, there are no increases at the state level for 2024.
Employers should note that there are smaller jurisdictions in New Mexico with their own rates.
New York State Minimum Wage 2024
As a refresher, New York State has three separate rates for New York City, Nassau, Suffolk, and Westchester counties, and the remainder of the state.
During the summer of 2023, lawmakers passed legislation that sets minimum wage through 2026. (And moved the state off of its odd Dec. 31 schedule to Jan. 1.)
Effective Jan. 1, 2024, the rates in New York State are:
- New York City – $16
- Nassau, Suffolk, and Westchester counties – $16
- Remainder of New York State – $15
Also, there are industry-specific tipped employee rates in New York for employers to note, effective Jan. 1, 2024:
Tipped Service Employees (Resort and General):
- New York City – $13.35 cash wage
- Nassau, Suffolk, and Westchester Counties – $13.35 cash wage
- Remainder of New York State – $12.50 cash wage
Tipped Food Service Workers:
- New York City – $10.65 cash wage
- Nassau, Suffolk, and Westchester Counties – $10.65 cash wage
- Remainder of New York State – $10.00 cash wage
Learn more about New York minimum wage.
Ohio Minimum Wage 2024
Ohio also has indexed rates in effect.
The state’s 2024 minimum wage rates are:
- $10.45
- $5.25 (tipped employees)
Rhode Island Minimum Wage 2024
Rhode Island is on scheduled increases, with minimum wage set to reach $15 in 2025.
Effective Jan. 1, 2024, the standard rate is:
- $14
However, the tipped minimum wage rate will remain at $3.89.
South Dakota Minimum Wage 2024
Effective Jan. 1, 2024, the minimum wage rates in South Dakota are:
- $11.20
- $5.60
South Dakota is also under indexed increases each year.
Virginia Minimum Wage 2024
Though Virginia’s minimum wage increased on Jan. 1, 2023, it will not go up in 2024.
However, employers should note that the state’s rates will go up again on Jan. 1 in 2025 and 2026.
Vermont Minimum Wage 2024
Under indexing, the Vermont minimum wage rates effective Jan. 1, 2024, are:
- $13.67
- $6.84 (tipped employees)
Washington State Minimum Wage 2024
Home to the highest state minimum wage in the U.S., Washington is under indexing and does not have a separate rate for tipped employees.
Effective Jan. 1, 2024, the Washington State minimum wage is:
- $16.28
Washington is also home to the highest city minimum wage rates: SeaTac, Seattle and Tukwila.
Bellingham, WA also recently adopted a new minimum wage ordinance via a ballot measure that will go into effect later this year.
Conclusion – State Minimum Wage Rates 2024
Employers that operate across the U.S. know minimum wage rate management is a major challenge.
And the 2024 state minimum wage rates are no exception.
Multi-jurisdiction employers should also continue to monitor the activity at local levels of government for any new or updated minimum wage ordinances.
Lastly, GovDocs followers should keep an eye out for the upcoming Minimum Wage Rate Guide, which will have rates for large employers in counties and cities.
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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