2024 Changes to State Minimum Wages

Know if your state’s minimum wage is changing.

Many states are embracing the movement to offer workers a “living wage.” Twenty-four have announced increases to their minimum wages for 2024.

Read on to find out whether your business will be affected.

Which state minimum wages are changing in 2024?

Check the list below to see if your state is increasing its minimum wage requirements in 2024. Note that some states automatically adjust their minimum wage for inflation each year. Unless otherwise noted, the new wage requirements take effect Jan. 1, 2024.

• Alaska: The state’s minimum wage increases annually using an inflation-based cost-of-living adjustment. It is expected to rise from $10.85 to $11.73, based on Bloomberg Tax calculations.
• Arizona: The state’s minimum wage will increase from $13.85 to $14.25 per hour. (Flagstaff, Arizona has a higher minimum wage for employees in its city. Flagstaff’s minimum wage is $17.40.)
• California: The state’s minimum wage will increase from $15.50 to $16 per hour.
• Colorado: Colorado’s minimum wage will rise from $13.65 to $14.42. The hourly tipped minimum will rise from $10.63 to $11.40.
• Connecticut: In accordance with a state law passed in 2019, Connecticut will increase its hourly wage five times. Future yearly increases will be tied to the U.S. Department of Labor’s Employment Cost Index. In 2024, Connecticut’s minimum wage will increase 4.6%, to $15.69.
• Delaware: The state’s hourly minimum wage increases incrementally over a period of years. In 2024, it will rise to $13.25.
• Florida: The state’s minimum wage will rise to $13 on Sept. 30, 2024.
• Hawaii: The state’s minimum wage will increase to $14. It will continue to rise $2 every two years.
• Illinois: The state’s minimum wage will rise from $13 per hour to $14 per hour, and will increase again by $1 in 2025.
• Maine: The state’s minimum wage will increase to $14.15 per hour.
• Maryland: The state’s minimum wage will increase to $15 per hour for employers of all sizes. The state will depart from its previous wage-by-employer-size structure.
• Michigan: The state’s minimum wage is set to increase from $10.10 to $10.33 per hour.
• Minnesota: “Large” Minnesota employers must raise their minimum wage from $10.59 per hour to$10.85 to account for inflation. “Small” employers must raise their minimum wage from $8.63 to$8.85 per hour. Large employers are those with annual gross revenues of $500,00 or more. Small employers are those with less than $500,000 in annual gross revenue. Both increases represent a2.5% jump from 2023’s rates. (Note that Minneapolis and St. Paul have higher minimum wages.)
• Montana: The state’s minimum wage will increase from $9.95 to $10.30, representative of a cost-of-living adjustment.
• Nebraska: The state’s minimum wage will increase from $10.50 to $12 an hour. It will continue to rise $1.50 annually until it reaches $15.00 an hour in 2026.
• Nevada: The state’s minimum wage will rise from $11.25 to $12 an hour.
• New Jersey: The state’s minimum wage will rise from $14 to $15.13 an hour.
• New York: The state’s minimum wage will rise to $15. It will continue to rise by $.50 a year until 2026. (In New York City, Long Island and Westchester, the minimum wage will rise to $16 an hour in2024.)
• Ohio: The minimum wage will rise from $10.10 to $10.45. The tipped worker minimum wage will rise from $5.05 to $5.25.
• Oregon: The rate for 2024 has not yet been announced, but any new rate will apply beginning July 1, 2024. In recent years, Oregon employers have seen an annual rate increase of $.75 per hour. With the 2023 minimum wage set at $14.20, employers should be prepared for a minimum wage of $14.95 for standard areas. (Oregon has announced that employers can expect to pay employees in the Portland metro area “$1.25 over the standard minimum wage” in 2024.)
• Rhode Island: The state’s minimum wage will increase from $13 to $14 an hour.
• South Dakota: The state’s minimum wage will increase from $10.80 to $11.20 an hour.
• Vermont: The state’s minimum wage will rise from $13.18 to $13.67 per hour.
• Washington: The state’s minimum wage will rise from $15.74 to $16.28 per hour.

States that are keeping their minimum wages in 2024

All other states are maintaining their current minimum wages:

Is the federal minimum wage changing in 2024?

As of now, it appears the federal minimum wage will remain $7.25 per hour. The federal rate has not changed since 2009.

If you have tipped workers, their minimum wage is $2.13 per hour. However, if the amount of tips a worker receives does not bring their total hourly wage to $7.25, you must pay them the difference.

Stay on top of your compliance obligations

With the rise of remote and hybrid work, it’s more important than ever to stay on top of the minimum wage rules in the states where you operate and hire employees. If you have questions about your compliance, reach out to our Human Resources Consulting team to learn more.

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