Minimum wage and other minimum pay requirements regularly increase at different points throughout any given year. Generally, these changes become effective on or around January 1 and on or around July 1. This page contains resources to guide you in determining the appropriate minimum compensation for your employees.
Resources on Minimum Pay Information
- Mineral*: State and Local Minimum Wage Updates
- Department of Labor: State Minimum Wage Laws
- Economic Policy Institute (EPI): Minimum Wage Tracker
- Littler Mendelson: Rates Up, Dude – Surfing the Wave of U.S. Minimum Wage, Tipped, and Exempt Employee Pay Increases that Will Occur on July 1, 2024
Things to Remember
- Locality matters. Many cities, counties, and/or towns within a state have higher minimum pay requirements than the state itself. EPI’s Minimum Wage Tracker allows you to select the locality in which your employee(s) work under “Areas with different minimum wages” after selecting the applicable state.
- Exempt employees may be impacted. In some states, the minimum salary thresholds for exempt employees may increase. Other minimum salary requirements for exempt employees may also apply to your employee(s).
- Different requirements exist for different types of employees. In many states, tipped employees and employees working in certain industries have separate minimum wage requirements, which may also vary depending on which region they work within the state.
- Double-check your work. Consult with legal counsel to ensure you’re compliant with minimum pay requirements as they apply to your employees.
Justworks Resources
Minimum Pay Requirement Updates
All updates below are effective July 1, 2024, unless otherwise noted. The below updates do not include tipped minimum wage updates or updates specific to certain industries.
Remember, the updates below only pertain to states or localities where the rates are changing mid-year, with most effective July 1. Other requirements already in effect at the state or local levels may also apply to your employees and they may be higher than the requirements below. Where relevant, we have called out existing requirements – for example, noting the existing state minimum wage when only local minimum wages are changing for that state mid-year.
- Current minimum hourly wage: $7.25 per hour (no change)
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New minimum exempt weekly salary requirement: $844 ($43,888 per year)
- Certain states might have higher salary thresholds for exempt employees, which may exceed these federal requirements.
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The following rates at the state level went into effect on January 1, 2024:
- Minimum hourly wage: $16.00
- Minimum exempt weekly salary requirement: $1,240 ($66,560 per year)
Local updates
- Alameda - new minimum hourly wage: $17.00
- Berkeley - new minimum hourly wage: $18.67
- Emeryville - new minimum hourly wage: $19.36
- Fremont - new minimum hourly wage: $17.30
- Los Angeles (city, all business sizes) - new minimum hourly wage: $17.28
- Los Angeles County (unincorporated areas, all business sizes) - new minimum hourly wage: $17.27
- Malibu - new minimum hourly wage: $17.27
- Milpitas - new minimum hourly wage: $17.70
- Pasadena (all business sizes) - new minimum hourly wage: $17.50
- San Francisco - new minimum hourly wage: $18.67
- Santa Monica (all business sizes) - new minimum hourly wage: $17.27
- New minimum hourly wage: $17.50
- New minimum hourly wage: $13.00 (effective September 30, 2024)
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The following rate at the state level went into effect on January 1, 2024:
- Minimum hourly wage: $14.00**
Local updates
- Chicago (4 or more employees) - new minimum hourly wage: $16.20
- Cook County - new minimum hourly wage: $14.05
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The following rate at the state level went into effect on January 1, 2024:
- Minimum hourly wage (all employers): $15.00
Local updates
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Montgomery County (up to 50 employees) - new minimum hourly wage: $15.00
- Montgomery County (51 or more employees) - new minimum hourly wage: $16.70
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The following rate at the state level went into effect on January 1, 2024:
- Minimum hourly wage: $10.85
Local updates
- Minneapolis - new minimum hourly wage: $15.57
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St. Paul (1-5 employees) - new minimum hourly wage: $12.25
- St. Paul (6-100 employees) - new minimum hourly wage: $14.00
- St. Paul (100 or more employees) - new minimum hourly wage: $15.57
Nevada††
- New minimum hourly wage: $12.00
- Nonurban counties - new hourly minimum wage: $13.70
- Standard - new hourly minimum wage: $14.70
- Portland metro area - new hourly minimum wage: $15.95
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The following rate at the state level went into effect on January 1, 2024:
- Minimum hourly wage: $16.28
Local updates
- Bellingham - new minimum hourly wage: $17.28 (effective May 1, 2024)
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Tukwila^^ (15-500 employees) - new minimum hourly wage: $19.29
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Tukwila (501 or more employees) - current minimum hourly wage: $20.29
- This minimum wage for larger employers went into effect January 1, 2024.
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Tukwila (501 or more employees) - current minimum hourly wage: $20.29
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Renton (1-500 employees) - new minimum hourly wage: $18.29
- Renton (501 or more employees) - new minimum hourly wage: $20.29
Notes
*Be sure you’re logged into your Justworks account with administrative permissions to access Mineral.
^These federal minimum salary requirements are applicable to employees who are considered exempt per the Fair Labor Standards Act (FLSA) under the executive, administrative, and professional exemptions.
**Illinois allows a lower minimum wage ($12.50) for new employees over the age of 18, only for the first 90 days of employment.
†Minnesota has a lower minimum wage ($8.85/hour) for employers with less than $500,000 annual gross revenue. Certain localities in Minnesota define minimum wage based on number of employees, so employers should consider annual gross revenues, number of employees, and locality (as well as any other applicable factors) in determining the applicable minimum wage.
†† Nevada’s minimum wage will remain at $12.00 per hour for all employees, regardless if qualifying health benefits are provided. This is a change from previous years, when employers could pay a lower minimum wage if offering health insurance benefits.
^^Tukwila, Washington minimum hourly wage applies to employers that either (1) employ at least 15 employees worldwide, or (2) has annual gross revenue over $2 million.
Changelog
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June 18, 2024:
- An article from Littler Mendelson has been added under “Resources on Minimum Pay Information”.
- Chicago's new minimum hourly wage has been updated and now applies to all employers with 4 or more employees. Previously, a separate higher rate applied to employers with 21 or more employees.
- Minneapolis, MN has updated its minimum wage to apply to all employers, regardless of size. Previously, a separate lower rate was applied to employers with 100 or fewer employees.
- Renton, WA has updated its minimum wage, now applying to all employers with fewer than 501 employees. Previously, the minimum wage only applied to employers with 5 to 500 employees. The minimum wage for employers with 501 or more employees remains unchanged.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.