Once again, we rang in the new year with a great many state and local minimum wage increases.
This year, 23 states—and several counties and cities—will increase their minimum wages and, where applicable, tipped minimum wage. Most of these increases went into effect on January 1, 2025.
Employers with minimum wage (and tipped minimum wage) workers should discuss newly implemented increases with counsel to ensure their compensation practices comply across all relevant jurisdictions.
Minimum Wage Increases
Jurisdictions | 2024 Minimum Wage | 2025 Minimum Wage (effective January 1, 2025 unless otherwise noted) |
Alaska | $11.73 |
$11.91 $13.00 (effective July 1, 2025) |
Arizona | $14.35 | $14.70 |
Flagstaff, AZ | $17.40 | $17.85 |
Tucson, AZ | $14.25 | $15.00 |
California | $16.00 | $16.50 |
Belmont, CA | $17.35 | $18.30 |
Burlingame, CA | $16.98 | $17.43 |
Cupertino, CA | $17.75 | $18.20 |
Daly City, CA | $16.62 | $17.07 |
East Palo Alto, CA | $17.00 | $17.45 |
El Cerrito, CA | $17.92 | $18.34 |
Foster City, CA | $17.00 | $17.39 |
Half Moon Bay, CA | $17.01 | $17.47 |
Hayward, CA |
$16.90 (for large employers of 26 or more employees) $16.00 (for small employers of 25 or fewer employees) |
$17.36 (for large employers of 26 or more employees) $16.50 (for small employers of 25 or fewer employees) |
Los Altos, CA | $17.75 | $18.20 |
Menlo Park, CA | $16.70 | $17.10 |
Mountain View, CA | $18.75 | $19.20 |
Novato, CA |
$16.86 (for very large employers of 100 or more employees) $16.60 (for large employers of 26 to 99 employees) $16.04 (for small employers of 1 to 25 employees) |
$17.27(for very large employers of 100 or more employees) $17.00 (for large employers of 26 to 99 employees) $16.42 (for small employers of 1 to 25 employees) |
Oakland, CA | $16.50 | $16.89 |
Palo Alto, CA | $17.80 | $18.20 |
Petaluma, CA | $17.45 | $17.97 |
Redwood City, CA | $17.70 | $18.20 |
Richmond, CA | $17.20 | $17.77 |
San Carlos, CA | $16.87 | $17.32 |
San Diego, CA | $16.85 | $17.25 |
San Jose, CA | $17.55 | $17.95 |
San Mateo, CA | $17.06 | $17.95 |
Santa Clara, CA | $17.75 | $18.20 |
Santa Rosa, CA | $17.45 | $17.87 |
Sonoma, CA |
$17.60 (for large employers of 26 or more employees) $16.56 (for small employers of 25 or fewer employees) |
$18.02 (for large employers of 26 or more employees) $16.96 (for small employers of 25 or fewer employees) |
South San Francisco, CA | $17.25 | $17.70 |
Sunnyvale, CA | $18.55 | $19.00 |
Colorado | $14.42 | $14.81 |
Boulder County, CO | $15.69 | $16.57 |
Denver, CO | $18.29 | $18.81 |
Edgewater, CO | $15.02 | $16.52 |
Connecticut | $15.69 | $16.35 |
Delaware | $13.25 | $15.00 |
Florida | $13.00 | $14.00 (effective September 30, 2025) |
Illinois | $14.00 | $15.00 |
Cook County, IL* | $14.05 | $15.00 |
Maine | $14.15 | $14.65 |
Portland, ME | $15.00 | $15.50 |
Rockland, ME | $15.00 | $15.50 |
Howard County, MD |
$15.00 (for large employers of 15 or more employees) $15.00 (for small employers of 14 or fewer employees) |
$16.00 (for large employers of 15 or more employees) $15.00 (for small employers of 14 or fewer employees) |
Michigan | $10.33 | $10.56 |
Minnesota |
$10.85 (for large employers with annual gross sales of $500,000 or more) $8.85 (for small employers with annual gross sales of less than $500,000) |
$11.13 (for all employers) |
Minneapolis, MN |
$15.57 (for large employers of more than 100 employees) $15.57 (for small employers of 100 or fewer employees effective July 1, 2024) |
$15.97 (for all employers) |
St. Paul, MN |
$15.57 (for macro businesses of more than 10,000 employees) $15.57 (for large businesses of 101 to 10,000 employees effective July 1, 2024) $14.00 (for small businesses of 6 to 100 employees effective July 1, 2024) $12.25 (for micro businesses of 5 or fewer employees |
$15.97 (for macro businesses of more than 10,000 employees) $15.97 (for large businesses of 101 to 10,000 employees) $15.00 (for small businesses of 6 to 100 employees effective July 1, 2025) $13.25 (for micro businesses of 5 or fewer employees effective July 1, 2025) |
Missouri | $12.30 | $13.75 |
Montana | $10.30 | $10.55 |
Nebraska | $12.00 | $13.50 |
New Jersey |
$15.13 (for most employers) $13.73 (for small of fewer than 6 employees and seasonal employers) |
$15.49 (for most employers) $14.53 (for small of fewer than 6 employees and seasonal employers) |
Las Cruces, NM | $12.36 | $12.65 |
New York (Outside New York City and Nassau, Suffolk, and Westchester Counties) | $15.00 | $15.50 |
New York City and Nassau, Suffolk, and Westchester Counties | $16.00 | $16.50 |
Ohio |
$10.45 (for employers generally) $7.25 (for businesses grossing less than $385,000 annually) |
$10.70 (for employers generally) $7.25 (for businesses grossing less than $394,000 annually) |
Rhode Island |
$14.00 | $15.00 |
South Dakota |
$11.20 | $11.50 |
Vermont | $13.67 | $14.01 |
Virginia | $12.00 | $12.41 |
Washington | $16.28 | $16.66 |
Bellingham, WA | $17.28 | $17.66 through April 30, 2025. |
Burien, WA | The Washington State Minimum Wage |
$21.16 (for all employers or franchisees with more than 500 full-time equivalent employees) $20.16 (for all employers or franchisees with 21 to 499 full-time equivalent employees effective July 1, 2025) Employers with 20 or fewer employees are exempt |
Renton, WA |
$20.29 (for large employers with more than 500 employees) $18.29 (for employers with 15 to 500 employees) |
$20.90 (for large employers with more than 500 employees) $18.90 through June 30, 2025 (for mid-size employers with 15 to 500 employees). On July 1, 2025, the rate will increase to $19.90. |
SeaTac, WA | $19.71 | $20.17 |
Seattle, WA |
$19.97 (for employers of 501 or more employees) $17.25 (for employers of 500 or fewer employees that contribute at least $2.19 an hour to an individual employee’s medical benefits and/or the employee earns at least $2.19 an hour in tips) $19.97 (for non-qualifying small employers of 500 or fewer employees) |
$20.76 (for all employers) Small businesses are no longer able to make up minimum wages with tips or medical benefits. |
Tukwila, WA |
$20.29 (for large employers of more than 500 employees) $19.29 (for mid-size employers of 15-500 employees) |
$21.20 (for large employers of more than 500 employees worldwide and certain franchisees) $20.10 through June 30, 2025 (for mid-size employers of 15-500 employees worldwide or over $2 million of annual gross revenue in Tukwila). On July 1, 2025, the minimum wage will increase to $21.20. The ordinance does not apply to employers with fewer than 15 employees worldwide and $2 million or less in gross revenue who are not associated with a franchisor or a network of franchisees that employ more than 500 employees in aggregate. |
* Cook County’s Minimum Wage Ordinance (“MWO”) does not apply to municipalities opting out of the ordinance or adopting their own minimum wage. As such, employers should consult with counsel to ensure their compensation practices comply with applicable law.
Tipped Minimum Wage Increases
Similar to minimum wages, the start of a new year brings an increase to several state, county, and city tipped minimum wages. Employers may pay tipped employees a cash wage below the applicable minimum wage if the employee’s tips, in addition to the cash wage, equal the relevant minimum wage (often referred to as the tipped minimum wage).
The tipped minimum wage will increase in the following jurisdictions this year.
Jurisdictions | 2024 Tipped Minimum Wage | 2025 Tipped Minimum Wage |
Arizona | $11.35 | $11.70 |
Flagstaff, AZ | $15.90 | $17.85 |
Colorado | $11.40 | $11.79 |
Boulder, CO | N/A | $12.55 |
Boulder County, CO (excluding Boulder) | $12.67 | $13.55 |
Denver, CO | $15.27 | $15.79 |
Edgewater, CO | $12.00 | $13.50 |
Florida | $8.98 |
$9.98 through September 29, 2025 $10.98 (effective September 30, 2025) |
Illinois | $8.40 | $9.00 |
Maine | $7.08 | $7.33 |
Portland, ME | $7.50 | $7.75 |
Michigan | $3.93 | $4.01 |
Missouri | $6.15 | $6.88 |
New Jersey | $5.26 | $5.62 |
Las Cruces, NM | $4.95 | $5.06 |
New York (Outside New York City, and Long Island and Westchester Counties) |
$12.50 Cash Wage and $2.50 Tip Credit (for tipped service employees) $10.00 Cash Wage and $5.00 Tip Credit (for tipped food service workers) |
$12.90 Cash Wage and $2.60 Tip Credit (for tipped service employees) $10.35 Cash Wage and $5.15 Tip Credit (for tipped food service workers) |
New York City, and Long Island and Westchester Counties, NY |
$13.35 Cash Wage and $2.65 Tip Credit (for tipped service employees) $10.65 Cash Wage and $5.35 Tip Credit (for tipped food service workers) |
$13.75 Cash Wage and $2.75 Tip Credit (for tipped service employees) $11.00 Cash Wage and $5.50 Tip Credit (for tipped food service workers) |
Ohio | $5.25 | $5.35 |
South Dakota | $5.60 | $5.75 |
Vermont | $6.84 | $7.01 |