Minimum Pay Requirement Updates: 2025

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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

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 

• Updating an Employee’s Compensation
• Changing Employment Statuses

Minimum Pay Requirement Updates

All updates below are effective January 1, 2025, 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 January 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.  For example, we’ve called out existing requirements in Los Angeles, San Francisco, and Chicago that are not changing on January 1 but are higher than state requirements. This may be the case in other localities as well.

Note: For states and localities marked as 'TBD,'  updates are forthcoming. Changes will be made as information becomes available, and changes after the original publication date will be reflected in the Changelog at the end of this article.

Notes

*Be sure you’re logged into your Justworks account with administrative permissions to access Mineral.

^*Federal Exempt Salary Requirement Increase Canceled: On November 15, 2024, a federal judge struck down the Department of Labor's proposed minimum salary threshold increases for employees who are considered exempt under the executive, administrative, and professional  (EAP) exemptions, rolling it back to the previous threshold. Certain states may exceed federal salary thresholds for exempt employees.

**Increases again to $12.48/hour on February 21, 2025 in accordance with the recent Michigan Supreme Court ruling regarding the Improved Workforce Opportunity Wage Act.

^!The minimum hourly wage in St. Paul varies based on employer size. While the minimum wage did not increase for smaller employers in January, increases are scheduled for July 2025.

†New Jersey minimum wage rates for 2025 could be higher based on the Consumer Price Index (CPI throughout the year as costs continue to rise, employers should continue to monitor these updates.

††Minimum exempt salary requirements for New York apply only to those exempt under the administrative and executive exemptions.

&^ For King County employers with ≤15 employees and a gross revenue of less than $2 million, the minimum pay requirement is $17.29 per hour.

^^Tukwila minimum wage applies to midsize employers who have at least 15 employees, but not more than 500 employees worldwide. Large employers are considered those to be over 500 employees, and the minimum wage would increase to $21.10 per hour.

Changelog

• December 9, 2024:
  • New Resource: An article from Littler Mendelson has been added under “Resources on Minimum Pay Information”
  • Alaska: State minimum hourly wage and minimum salary threshold have been added
  • California: 
    • San Mateo County minimum hourly wage amount has been added.
    • Richmond footnote has been removed, as the minimum hourly wage amount has been finalized with no additional changes
  • Colorado: 
    • Boulder, CO minimum hourly wage amount has been added 
    • State minimum salary threshold has been updated
  • Maine: State minimum salary threshold has been updated
  • Maryland: State minimum hourly wage updated to reflect no change from 2024 to 2025
  • Missouri: State minimum hourly wage has been updated
  • New Mexico: State minimum hourly wage updated to reflect no change from 2024 to 2025
  • Washington: Bellingham, King County, and Renton minimum hourly wage amounts have been added

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.