© 2023 American Payroll Institute, Inc.
State Minimum Wage Increases in 2024
With the new year approaching, employers should be
aware of which states will increase their minimum
wage rates. Some states increase their minimum wage
along a predetermined schedule. Other states increase their
minimum wage if the applicable Consumer Price Index (CPI)
increases beyond a certain threshold. In addition, states
may raise the minimum wage and depart from previous
scheduled increases based on new legislation.
Florida differs from other states, which typically update
their minimum wage at the beginning of the year or in the
summer. Florida’s annual updates to its minimum wage
take effect in September through 2026, when the minimum
wage will be $15.00 per hour. This year, the minimum wage
increased to $12.00 per hour, effective September 30, 2023.
Beginning September 30, 2024, the minimum wage will
increase to $13.00 per hour. Employers may take a tip credit
of $3.02 per hour against the minimum wage.
The following chart lists the states that will increase
their minimum wage rates, effective January 1, 2024, and
the corresponding tip credit, where applicable (this updates
The Payroll Source®, §§2.11-1 and 2.11-2 and Guide to State
Payroll Laws, Table 1.1 – Minimum Wage Rates and Tip
Credit Amounts). State abbreviations link to the relevant
state agencies, and the 2024 minimum wage rates link to
applicable notice posters, where available. The New York
2024 tip credit amounts listed are included in proposed
regulations.
Note: To ensure employers are in full compliance with
state requirements, it is PAYO’s practice to round tipped
employee minimum cash wage rates up to the nearest
penny and tip credit amounts down to the nearest penny if
the calculation (e.g., half of the minimum wage) results in an
amount including less than a penny.
State 2023 Minimum Wage 2024 Minimum Wage 2023 Tip Credit 2024 Tip Credit
AK $10.85 $11.73 Prohibited
AZ $13.85 $14.35 $3.00 $3.00
CA $15.50 $16.00 Prohibited
CO $13.65 $14.42 $3.02 $3.02
CT $15.00 $15.69 $8.62
hotel/restaurant
employees
$9.311
hotel/restaurant
employees
$6.77
bartenders
$7.461
bartenders
DE $11.75 $13.25 $9.52 $11.02
HI $12.00 $14.00 $1.002 $1.252
IL $13.00 $14.00 $5.20 $5.60
ME $13.80 $14.15 $6.90 $7.08
MD3 $13.25
large employers
$15.00
all employers
$9.62
large employers
$11.37
all employers
$12.80
small employers
$9.17
small employers
MI $10.10 $10.334 $6.26 $6.404
MN5 $10.59
large employers
$10.85
large employers
Prohibited
$8.63
small employers
$8.85
small employers
MO6 $12.00 $12.30 $6.00 $6.15
MT7 $9.95 $10.30 Prohibited
NE $10.50 $12.00 $8.37 $9.87
December 18, 2023 Volume 25 Issue 24
State Minimum Wage Increases in 2024
With the new year approaching, employers should be
aware of which states will increase their minimum
wage rates. Some states increase their minimum wage
along a predetermined schedule. Other states increase their
minimum wage if the applicable Consumer Price Index (CPI)
increases beyond a certain threshold. In addition, states
may raise the minimum wage and depart from previous
scheduled increases based on new legislation.
Florida differs from other states, which typically update
their minimum wage at the beginning of the year or in the
summer. Florida’s annual updates to its minimum wage
take effect in September through 2026, when the minimum
wage will be $15.00 per hour. This year, the minimum wage
increased to $12.00 per hour, effective September 30, 2023.
Beginning September 30, 2024, the minimum wage will
increase to $13.00 per hour. Employers may take a tip credit
of $3.02 per hour against the minimum wage.
The following chart lists the states that will increase
their minimum wage rates, effective January 1, 2024, and
the corresponding tip credit, where applicable (this updates
The Payroll Source®, §§2.11-1 and 2.11-2 and Guide to State
Payroll Laws, Table 1.1 – Minimum Wage Rates and Tip
Credit Amounts). State abbreviations link to the relevant
state agencies, and the 2024 minimum wage rates link to
applicable notice posters, where available. The New York
2024 tip credit amounts listed are included in proposed
regulations.
Note: To ensure employers are in full compliance with
state requirements, it is PAYO’s practice to round tipped
employee minimum cash wage rates up to the nearest
penny and tip credit amounts down to the nearest penny if
the calculation (e.g., half of the minimum wage) results in an
amount including less than a penny.
State 2023 Minimum Wage 2024 Minimum Wage 2023 Tip Credit 2024 Tip Credit
AK $10.85 $11.73 Prohibited
AZ $13.85 $14.35 $3.00 $3.00
CA $15.50 $16.00 Prohibited
CO $13.65 $14.42 $3.02 $3.02
CT $15.00 $15.69 $8.62
hotel/restaurant
employees
$9.311
hotel/restaurant
employees
$6.77
bartenders
$7.461
bartenders
DE $11.75 $13.25 $9.52 $11.02
HI $12.00 $14.00 $1.002 $1.252
IL $13.00 $14.00 $5.20 $5.60
ME $13.80 $14.15 $6.90 $7.08
MD3 $13.25
large employers
$15.00
all employers
$9.62
large employers
$11.37
all employers
$12.80
small employers
$9.17
small employers
MI $10.10 $10.334 $6.26 $6.404
MN5 $10.59
large employers
$10.85
large employers
Prohibited
$8.63
small employers
$8.85
small employers
MO6 $12.00 $12.30 $6.00 $6.15
MT7 $9.95 $10.30 Prohibited
NE $10.50 $12.00 $8.37 $9.87
December 18, 2023 Volume 25 Issue 24
