Last year continued the trend of rising inflation, interest rates and borrowing costs, as well as cost-of-living increases. With these concerns top of mind, many states continued to increase their required minimum wage rates. Employers should be aware of the following minimum wage increases that took effect at the end of 2023 or the beginning of 2024.
Because these increases do not apply to tipped workers and other special classes of employees, and may be superseded by local mandates, employers should review their compensation practices and consult with appropriate counsel to ensure compliance with applicable laws and regulations.
Alaska
The Alaska minimum wage increased from $10.85 per hour to $11.73 per hour, effective Jan. 1.
Arizona
The Arizona minimum wage increased from $13.85 per hour to $14.35 per hour, effective Jan. 1.
California
The California minimum wage increased from $15.50 per hour to $16 per hour, effective Jan. 1.
Colorado
The Colorado minimum wage increased from $13.65 per hour to $14.42 per hour, effective Jan. 1.
Connecticut
The Connecticut minimum wage increased from $15 per hour to $15.69 per hour, effective Jan. 1.
Delaware
The Delaware minimum wage increased from $11.75 per hour to $13.25 per hour, effective Jan. 1.
District of Columbia
The District of Columbia minimum wage will increase from $17 per hour to $17.50 per hour, effective July 1. (The current $17 minimum wage went into effect July 1, 2023.)
Florida
The Florida minimum wage will increase from $12 per hour to $13 per hour, effective Sept. 30. The current minimum wage rate went into effect Sept. 30, 2023.
Hawaii
The Hawaii minimum wage increased from $12 per hour to $14 per hour, effective Jan. 1.
Illinois
The Illinois minimum wage increased from $13 per hour to $14 per hour, effective Jan. 1.
Maine
The Maine minimum wage increased from $13.80 per hour to $14.15 per hour, effective Jan. 1.
Maryland
The Maryland minimum wage increased from $13.25 per hour to $15 per hour, effective Jan. 1.
Michigan
The Michigan minimum wage increased from $10.10 per hour to $10.33 per hour, effective Jan. 1.
Minnesota
Minnesota uses a tiered system for establishing minimum wage rates. Effective Jan. 1, the minimum wage increased from $8.63 per hour to $8.85 per hour for small employers (those with annual gross revenues of less than $500,000) and from $10.59 per hour to $10.85 per hour for large employers (those with annual gross revenues of $500,000 or more).
Missouri
The Missouri minimum wage increased from $12 per hour to $12.30 per hour, effective Jan. 1.
Montana
The Montana minimum wage increased from $9.95 per hour to $10.30 per hour, effective Jan. 1.
Nebraska
The Nebraska minimum wage increased from $10.50 per hour to $12 per hour, effective Jan. 1.
Nevada
Nevada will eliminate its tiered minimum wage system July 1. The statewide minimum wage then will increase to $12 for all employers.
New Jersey
The New Jersey minimum wage increased from $14.13 per hour to $15.13 per hour for most employers, effective Jan. 1. Seasonal employers and employers with fewer than six employees will see the minimum wage increase from $12.70 per hour to $13.73 per hour.
New York
New York sets minimum wage rates by location. The minimum wage is $15 per hour for large and small employers in New York City, as well as for employers of all sizes on Long Island and in West Chester. The minimum wage increased to $16 per hour in these areas, effective Jan. 1. The minimum wage for the rest of the state increased from $14.20 per hour to $15 per hour, effective Jan. 1.
Ohio
The Ohio minimum wage increased from $10.10 per hour to $10.45, effective Jan. 1.
Oregon
Oregon sets minimum wage rates by location. The current minimum wage rates (which went into effect July 1, 2023) are $14.20 per hour for the “standard” geographic area, $15.45 per hour for the Portland metro area, and $13.20 per hour for non-urban counties. Effective July 1, 2024, the “standard” minimum wage will be adjusted based on the Consumer Price Index for all urban consumers, the Portland metro rate will increase to $1.25 over the new “standard” rate and the non-urban counties rate is expected increase to $1 below the new “standard” rate.
Rhode Island
The Rhode Island minimum wage increased from $13 per hour to $14 per hour, effective Jan. 1.
South Dakota
The South Dakota minimum wage increased from $10.80 per hour to $11.20 per hour, effective Jan. 1.
Vermont
The Vermont minimum wage increased from $13.18 per hour to $13.67 per hour, effective Jan. 1.
Washington
The Washington minimum wage increased from $15.74 per hour to $16.28 per hour, effective Jan. 1.
Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. The author has provided the links referenced above for information purposes only and by doing so, does not adopt or incorporate the contents. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.
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