Minimum wage laws are some of the most variant in the country. While the current federal minimum wage of $7.25 per hour still prevails in 20 states, all other states have higher minimum wage rates. Of those, 26 states have announced state minimum wage rate increases that will take place sometime in 2024, the majority of which become effective January 1, 2024.
When the state rate and federal minimum wage rate differ, employers must pay the higher of the two. Here is a list of all states, their minimum wage rates for 2024, and their effective dates (if not already in effect). *Indicates a change in 2024.
Alabama Minimum Wage in 2024
- $7.25 per hour
- $2.13 per hour for tipped employees
*Alaska Minimum Wage in 2024
- $11.73 per hour, effective January 1, 2024
- No tip credit, meaning employers cannot pay less than minimum wage; all tips are in addition to their regular wages
*Arizona Minimum Wage in 2024
- $14.35 per hour, effective January 1, 2024
- $11.35 ($3 below minimum wage for tipped employees)
Arkansas Minimum Wage in 2024
- $11.00 per hour
- $2.63 per hour for tipped employees
*California Minimum Wage in 2024
*Colorado Minimum Wage in 2024
- $14.42 per hour, effective January 1, 2024
- $11.40 per hour for tipped employees
- $12.26 per hour for unemancipated minors (i.e., remains under control of their parents, whether or not they live with them)
*Connecticut
- $15.69 per hour, effective January 1, 2024
- $6.38 per hour for tipped employees ($8.23 per hour for bartenders)
*Delaware Minimum Wage in 2024
- $13.25 per hour, effective January 1, 2024
- $2.23 per hour for tipped employees
*District of Columbia Minimum Wage in 2024
- $17.00 per hour
- $8.00 per hour for tipped employees
- Rate increase TBA effective July 1, 2024
*Florida Minimum Wage in 2024
- $12.00 per hour
- $8.98 per hour for tipped employees
- $13.00 per hour effective September 30, 2024
- $9.98 per hour for tipped employees effective September 30, 2024
Georgia Minimum Wage in 2024
- $7.25 per hour
- $5.15 per hour state rate for those not covered by federal minimum wage laws
- $2.13 per hour for tipped employees
*Hawaii Minimum Wage in 2024
- $14.00 per hour, effective January 1, 2024
- $12.75 per hour for tipped employees
Idaho Minimum Wage in 2024
- $7.25 per hour
- $3.35 per hour for tipped employees
*Illinois Minimum Wage in 2024
- $14.00 per hour, effective January 1, 2024, for 4+ employees
- $8.40 per hour for tipped employees; tip credit cannot exceed 40% of minimum wage
- $12.00 per hour for youth under 18 years old working fewer than 650 hours per calendar year
Indiana Minimum Wage in 2024
- $7.25 per hour
- $2.13 per hour for tipped employees
Iowa Minimum Wage in 2024
- $7.25 per hour
- $4.35 per hour for tipped employees
Kansas Minimum Wage in 2024
- $7.25 per hour
- $2.13 per hour for tipped employees
Kentucky Minimum Wage in 2024
- $7.25 per hour
- $2.13 per hour for tipped employees
Louisiana Minimum Wage in 2024
- $7.25 per hour
- $2.13 per hour for tipped employees
*Maine Minimum Wage in 2024
- $14.15 per hour, effective January 1, 2024
- $7.08 per hour for tipped employees
*Maryland Minimum Wage in 2024
- $15.00 per hour, effective January 1, 2024
- $3.63 per hour for tipped employees
- 85% of state rate for minors
Massachusetts Minimum Wage in 2024
- $15.00 per hour
- $6.75 per hour for tipped employees
*Michigan Minimum Wage in 2024
- $10.33 per hour, effective January 1, 2024
- $3.93 per hour for tipped employees
- $8.78 per hour for minors 16-17 years old
- $4.25 per hour training wage
*Minnesota Minimum Wage in 2024
- $10.85 per hour effective January 1, 2024, for employers that annually gross $500,000+
- $8.85 per hour for small employers, employees under 18 years old, and employees under 20 years old during first 90 days of work
- No tip credit, meaning employers cannot pay less than minimum wage; all tips are in addition to their regular wages
Mississippi Minimum Wage in 2024
- $7.25 per hour
- $2.13 per hour for tipped employees
*Missouri Minimum Wage in 2024
- $12.30 per hour, effective January 1, 2024
- $6.15 per hour for tipped employees
*Montana Minimum Wage in 2024
- $10.30 per hour effective January 1, 2024
- $4.00 per hour for businesses with gross annual sales of $110,000 or less not covered by federal minimum wage law
- No tip credit, meal credit or training wage is allowed
*Nebraska Minimum Wage in 2024
- $12.00 per hour, effective January 1, 2024
- $2.13 per hour for tipped employees
*Nevada Minimum Wage in 2024
- $10.25 per hour for employers providing qualifying health benefits
- $11.25 per hour for employers that do not provide qualifying health benefits
- $12.00 per hour effective July 1, 2024, for all employers
- No tip credit, meaning employers cannot pay less than minimum wage; all tips are in addition to their regular wages
New Hampshire Minimum Wage in 2024
- $7.25 per hour
- Tipped employees must receive 45% applicable rate
*New Jersey Minimum Wage in 2024
- $15.13 per hour, effective January 1, 2024, for 6+ employees
- $13.93 per hour for seasonal or fewer than 6 employees
- $12.81 per hour for agriculture
- $5.26 per hour for tipped employees
New Mexico Minimum Wage in 2024
- $12.00 per hour
- $3.00 per hour for tipped employees
- Smaller jurisdictions have their own minimum and/or tipped employee rates
*New York Minimum Wage in 2024
- $16.00 per hour effective January 1, 2024, for employees in New York City and downstate area
- $15.00 per hour for remainder of state
- $13.35 per hour for tipped service employees, $10.65 per hour for tipped food service workers in New York City and downstate area; $12.50 and $10.00 per hour for remainder of state
- Additional rates may apply to specific industries, visit NY Department of Labor for more details
North Carolina Minimum Wage in 2024
- $7.25 per hour
- $2.13 per hour for tipped employees
North Dakota Minimum Wage in 2024
- $7.25 per hour (already in effect)
- $4.86 per hour for tipped employees
*Ohio Minimum Wage in 2024
- $10.45 per hour, effective January 1, 2024
- $5.25 per hour for tipped employees
- Employers that gross less than $385,000 must pay no less than $7.25 per hour
Oklahoma Minimum Wage in 2024
- $7.25 per hour for employers with 10+ full-time employees and annual gross sales over $100,000
- $2.00 per hour for those not covered by the Fair Labor Standards Act (FLSA)
- $2.13 per hour for tipped employees
*Oregon Minimum Wage in 2024
- $14.20 per hour in the Standard are
- $15.45 per hour in the Portland metro area
- $13.20 per hour in the non-urban counties
- No tip credit, meaning employers cannot pay less than minimum wage; all tips are in addition to their regular wages
- Rate increase TBA (calculated by April 30th) effective July 1, 2024
- +$1.25 per hour for Portland metropolitan area
- -$1.00 per hour for non-urban counties
Pennsylvania Minimum Wage in 2024
- $7.25 per hour
- $2.83 per hour for tipped employees
*Rhode Island Minimum Wage in 2024
- $14.00 per hour, effective January 1, 2024
- $3.89 per hour for tipped employees
South Carolina Minimum Wage in 2024
- $7.25 per hour
- $2.13 per hour for tipped employees
*South Dakota Minimum Wage in 2024
- $11.20 per hour, effective January 1, 2024
- $5.60 per hour for tipped employees
Tennessee Minimum Wage in 2024
- $7.25 per hour
- $2.13 per hour for tipped employees
Texas Minimum Wage in 2024
- $7.25 per hour
- $2.13 per hour for tipped employees
Utah Minimum Wage in 2024
- $7.25 per hour
- $2.13 per hour for tipped employees
*Vermont Minimum Wage in 2024
- $13.67 per hour, effective January 1, 2024
- $6.84 per hour for tipped employees
Virginia Minimum Wage in 2024
- $12.00 per hour
- $2.13 per hour for tipped employees
*Washington Minimum Wage in 2024
- $16.28 per hour, effective January 1, 2024
- Seattle and Tacoma areas have higher rates, see details
- No tip credit, meaning employers cannot pay less than minimum wage; all tips are in addition to their regular wages
- Workers 14-15 years old may be paid $13.84 per hour
West Virginia Minimum Wage in 2024
- $8.75 per hour for 6+ employees
- $2.62 per hour for tipped employees
Wisconsin Minimum Wage in 2024
- $7.25 per hour
- $2.33 per hour for tipped employees
Wyoming Minimum Wage in 2024
- $7.25 per hour
- $5.15 per hour for those not covered by the FLSA
- $2.13 per hour for tipped employees
What should employers do about the new 2024 state minimum wage rates?
Companies that have employees working where their state minimum wage is increasing should review worker pay rates and make any required adjustments. Employers must also update their minimum wage poster notices as necessary to ensure compliance with local wage regulations.
Who are “tipped employees”?
Per the federal definition, tipped employees are workers in the service industry who customarily and regularly receive more than $30 per month in tips (some states have different thresholds). In most states, employers can pay tipped employees a lower wage because their tips help them earn at least the prevailing minimum wage.
In the event an employee does not earn enough tips to earn minimum wages, the employer must make up the difference. By law, employers are prohibited “from keeping tips received by their employees, regardless of whether the employer takes a credit for tips earned by workers toward its minimum wage obligation… [and] also prohibits employers from allowing managers or supervisors to keep any portion of employees’ tips.” Source: dol.gov
What is a “training wage”?
In most states, workers under the age of 20 may be paid a lower “training” minimum wage for the first 90 consecutive calendar days of employment when their work does not displace another worker. This applies to all employers covered by the FLSA, unless prohibited by state or local law.
Despite its title, employers do not have to meet any training requirements to pay a qualifying employee this youth training wage.
While the federal youth minimum training wage is $4.25 per hour, many states have a higher training wage that prevails for workers in that jurisdiction. After 90 days, the teen must receive at least the federal minimum rate of $7.25 per hour or the higher state minimum wage rate.
For questions about minimum wage or help with other wage and/or compliance matters, please contact your certified HR expert. Not a current Stratus HR client? Book a free consultation and our team will contact you shortly.
Sources:
Minimum Wages for Tipped Employees: dol.gov
State Minimum Wage by State: dol.gov