/>iAs 2024 comes to a close, employers should be aware of the hourly minimum wage rate increases set to take effect in various jurisdictions on January 1, 2025. 21 states and 48 local jurisdictions will “ring in” the New Year with new minimum wage rates. Of these jurisdictions, 8 states will have minimum wage rates reaching or exceeding $15/hour.
Non-exempt employees earning minimum wage in the following states will be impacted by the upcoming increases:
- Alaska
- Arizona
- California
- Colorado
- Connecticut
- Delaware
- Illinois
- Maine
- Michigan
- Minnesota
- Missouri*
- Montana
- Nebraska
- New Jersey
- New York
- Ohio
- Rhode Island
- South Dakota
- Vermont
- Virginia
- Washington
Those states identified in italics also have local jurisdictions with minimum wage increases effective January 1, 2025, that are higher than the applicable state minimum wage.
Missouri’s current wage increases are under legal challenge. See our recent blog post here for more details.
Employers should be on the lookout for any employees who may be affected by the minimum wage increases in the above states and localities to ensure they are ready to comply with these adjustments. In addition, employers with tip credit employees should review their tip credit notices to ensure full compliance with applicable laws (including cash wage being paid to the tipped employee and the amount of tip credit claimed by the employer). Finally, most jurisdictions require employers to post an updated minimum wage notice in the workplace, so make sure you find those notices before the holiday season takes over.
