December 5, 2023

2024 Minimum Wage Increases by State

Stepping into 2024 means navigating a variety of state minimum wage increases for many businesses, a task that requires attention to detail and an understanding of regional regulations. It’s not a one-size-fits-all situation—while some states align with the federal minimum wage, others adjust their rates based on the Consumer Price Index, which reflects inflation. Then there are those who chart their own course with unique legislation. HR professionals and business leaders must keep their finger on the pulse of these changes to ensure they’re following the rules and staying ahead in the competitive job market.

These wage increases are more than just numbers; they have real-world implications. For employees, a bump in pay can mean a more comfortable lifestyle and an opportunity for economic growth. On the flip side, businesses must adapt, potentially altering hiring practices, adjusting budgets, and seeking ways to maintain efficiency with increased labor costs.

 State Minimum Wage Adjustments

Outlined in the table below are the adjustments to the minimum wage, set to take effect on January 1, 2024, for states where applicable. While several states routinely modify their wage floors to reflect inflationary trends, their specific rates for 2024 remain pending announcement. This table incorporates all disclosed state minimum wage modifications for the year 2024 and notes those states expected to make customary annual revisions whose rates are yet to be publicized.

If a state is absent from the list, this indicates that there has been no alteration to its minimum wage from the previous year, 2023, or it simply adheres to the federal minimum wage standard without deviation.

State Minimum hourly wage effective January 1, 2024
Arizona $14.35
Alaska $11.73
California $16.00
Colorado $14.42 (Projected)
Connecticut $15.69
Delaware $13.25
Hawaii $14.00
Illinois $14.00
Maine $14.15
Maryland $15.00
Michigan $10.33
Minnesota $10.85 for employers with at least $500,000 in gross sales
$8.85 for employers with less than $500,000 in gross sales
Missouri $12.30
Montana $10.30
Nebraska $12.00
New Jersey $15.13 for employers with six or more employees
$13.73 for seasonal businesses and employers with fewer than six employees
New York  $16.00 per hour (New York City, Long Island and Westchester County)
$15.00 per hour (rest of the state)
Ohio $10.45
Rhode Island $14.00
South Dakota $11.20
Vermont $13.67
Washington $16.28

(Please be aware that the table serves as a visual guide and is subject to revision with precise figures once the official rates are released)

 

2024 Tipped Minimum Wage

The tipped minimum wage is a lower base wage that employers can legally pay workers who regularly receive tips, such as restaurant servers, bartenders, and others in the service industry. This is based on the expectation that the tips earned will supplement the base wage to meet or exceed the standard minimum wage. The specific amount varies by state, with federal regulations setting the base rate for tipped employees. Employers are required to ensure that the combination of tips and the tipped minimum wage equals or surpasses the regular minimum wage. If a worker’s tips plus the tipped minimum wage do not reach the standard minimum wage, the employer must make up the difference, ensuring that no employee earns below the minimum wage threshold for the hours worked. Below is a table with the Tipped Minimum Wage rates for federal and each state.

State Minimum Wage Maximum Tip Credit Tipped Minimum Wage (Total)
Federal $2.13 $5.12 $7.25
Alabama $7.23
Alaska $11.73
Arizona $14.35 $3.00 $11.35
Arkansas $11.00 $8.37 $2.63
California $16.00
Colorado $14.42 $3.02 $11.40
Connecticut $15.69 $9.31 (bartenders $7.46) $6.38 (bartenders $8.23)
Delaware $13.25 $11.02 $2.23
Florida $13.00 (eff. 9/30/24) $3.02 $9.98 (eff. 9/30/24)
Georgia $7.25
Hawaii $14.00 $1.25 $12.75
Idaho $7.25 $3.90 $3.35
Illinois $14.00 $5.60 $8.40
Indiana $7.25 $5.12 $2.13
Iowa $7.25 $2.90 $4.35
Kansas $7.25 $5.12 $2.13
Kentucky $7.25 $5.12 $2.13
Louisiana $7.25
Maine $14.15 $7.07 $7.08
Maryland $15.00 $11.37 $3.63
Massachusetts $15.00 $8.25 $6.75
Michigan $10.33 $6.40 $3.93
Minnesota $10.85 (AGR >$500K)
$8.85 (AGR <$500K)
Mississippi $7.25
Missouri $12.30 $6.15 $6.15
Montana $10.30
Nebraska $12.00 $9.87 $2.13
Nevada $12.00
New Hampshire $7.25 $3.99 $3.26
New Jersey $15.13 (6 or more EEs)
$13.73 (<6 EEs)
$9.87
$8.47
$5.26
New Mexico $12.00 $9.00 $3.00
New York City1 $16.00 $5.35 $10.65
New York (downstate) $16.00 $5.35 $10.65
New York (remainder of state) $15.00 $5.00 $10.00
North Carolina $7.25 $5.12 $2.13
North Dakota $7.25 $2.39 $4.86
Ohio $10.45 $5.20 $5.25
Oklahoma $7.25 $5.12 $2.13
Oregon $14.20
Pennsylvania $7.25 $4.42 $2.83
Rhode Island $14.00 $10.11 $3.89
South Carolina $7.25
South Dakota $11.20 $5.60 $5.60
Tennessee $7.25
Texas $7.25 $5.12 $2.13
Utah $7.25 $5.12 $2.13
Vermont $13.67 $6.83 $6.84
Virginia $12.00 $9.87 $12.00
Washington $16.28
West Virginia $8.75 $6.13 $8.75
Wisconsin $7.25 $4.92 $2.33
Wyoming $7.25 $5.12 $2.13

1 Different rates apply for tipped service employees.

 

Behind these numbers lie a complex narrative tied to living costs, competitive labor markets, and regulatory environments that vary dramatically across state lines. Human resources managers must consider these rates not only in terms of compliance but also as a facet of talent attraction and retention.

This tableau of numbers also speaks volumes about the philosophy underlying economic decisions—whether from policymakers who see minimum wage increases as stimulants for personal purchasing power and economic vitality or from business owners who may view them as challenging overheads that necessitate strategic adjustments.

Choosing Tesseon to handle your payroll needs brings you the expertise of specialists who are well-versed in the current rules and regulations. We’re dedicated to ensuring your business operates within legal boundaries while also identifying potential savings for you. Regardless of the complexities of your payroll requirements, you can count on Tesseon for dependable and understandable support.

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