A number of states and local jurisdictions have minimum wage increases that will go into effect on July 1, 2024. If you have hourly employees on your payroll, take a look at your state below to make sure you’re in compliance with the current minimum wage.
The states affected include:
Note: Other locations may have scheduled increases or other updates effective on July 1, 2024. Always check your local requirements to be sure you’re in compliance.
Which jurisdictions are affected by the minimum wage increase?
California
District of Columbia
City, state, or district |
New minimum and living wage requirements |
District of Columbia |
$17.50 per hour
$10.00 per hour tipped wage See more details. |
Illinois
City, state, or district |
New minimum wage requirement |
State of Illinois |
$14.00 per hour*
$8.40 per hour tipped wage* See more details.
*in effect since January 1, 2024 |
Chicago |
$16.20 for businesses with 4 or more employees
$11.02 per hour for tipped employees (businesses with 4 or more employees) See more details.
|
Cook County |
$14.05 per hour
$8.40 per hour for tipped employees See more details.
Note: Exceptions include employees who work for companies located in a municipality that has opted out of the requirement. |
Maryland
City, state, or district |
New minimum wage requirement |
Montgomery County |
$15.00 for businesses with 10 or fewer employees
$15.50 for businesses with 11-50 employees
$17.15 for businesses with more than 51 or more employees See more details. |
Minnesota
City, state, or district |
New minimum wage requirement |
Minneapolis |
$15.57 for businesses with 100 or fewer employees
$15.57 per hour for businesses with more than 100 employees See more details. |
Saint Paul |
$12.25 for businesses with 5 or fewer employees
$14.00 for businesses with 6-100 or fewer employees
$15.57 for businesses with 101-10,000 employees
$15.57 for businesses with 10,000 or more employees* See more details.
*in effect since January 1, 2024 |
Nevada
City, state, or district |
New minimum wage requirement |
State of Nevada |
$12.00 per hour See more details. |
Oregon
City, state, or district |
New minimum wage requirement |
State of Oregon |
$14.70 per hour standard, unless otherwise specified below See more details. |
Non-urban counties: Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties |
$13.70 per hour See more details. |
Portland Metro including parts of Clackamas, Multnomah, and Washington counties |
$15.95 per hour See more details. |
Washington
City, state, or district |
New minimum and living wage requirements |
Renton |
$18.29 per hour for mid-sized employers with 15-499 employees or over $2 million in gross revenues
$20.29 per hour for employers with 500+ employees See more details. |
Tukwila |
$19.29 per hour for mid-sized employers with 15-499 employees or over $2 million in gross revenues
$20.29 per hour for large employers with 500+ employees See more details. |
Minimum rates and tipped employees
Depending on your jurisdiction, the minimum cash wage required for tipped employees may also go up when the minimum wage increases. This means that if the minimum wage is $11.50, but the minimum cash wage for tipped employees is $6.50, then you may be able to apply a $5.00 tip credit ($11.50 – $6.50 = $5.00) toward meeting the required minimum wage amount. However, if the tipped employee’s minimum cash wage plus their tips do not equal or exceed the local minimum wage, employers are required to make up the difference. Consult your state and local wage laws to determine whether the minimum cash wage is changing for your employees on July 1, 2024.
Note: Remember, not all jurisdictions allow employers to apply a tip credit toward the minimum cash wage. In these locations, employers must pay tipped employees the full minimum in direct cash wages, regardless of their tips.
How to handle overlapping minimum wage rates
If you have employees working in cities or counties with different minimum wage requirements than their state, you should typically pay whatever minimum rate is most favorable to the employee. For example, the state of Illinois has a minimum wage rate of $14.00 per hour, but Chicago’s minimum wage can be as high as $16.20, so the higher rate should usually be applied for employees working in Chicago. An exception to this rule would be Oregon, which has a minimum wage of $14.70 per hour as of July 1, except in certain counties where the minimum rate is $13.70. In these counties, the lower rate applies even though the state-wide rate is higher. Requirements can also vary depending on the expected work hours of the employee or the size of the business. It is always a good idea to check your state and local laws to ensure you’re in compliance.
Posting minimum wage notices
In most cases, employers are required to post current minimum wage notices in a place visible to employees in the workplace. You may have multiple state, county, and city notice requirements, so be sure to check with your local governments to be sure you’ve got the most up-to-date information posted. If your business is located in a city, county, or state without a minimum wage increase so far in 2024, be on the lookout for any potential changes that may be on the way before the end of the year.
Additional increases in 2024
Some jurisdictions schedule minimum wage changes at other times during the year. For example, Florida’s minimum wage is set to rise to $13.00 per hour on September 30, 2024. The city of Bellingham, WA, adopted its own minimum wage of $17.28 as of May 1, 2024. The takeaway is that it’s a good idea to monitor any minimum wage changes where you do business to keep up with the latest updates.
This article is for informational purposes only and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for formal consultation.