The Federal Standard Minimum wage of $7.25/hour has not increased since 2009 and is now the longest stretch in the nation’s history without a federal minimum wage bump.

This situation has prompted smaller jurisdictions to implement minimum wage laws over the past few years.  As a result, states, counties, and cities nationwide are increasing their minimum wage starting on July 1, 2024.

Here is a list of new minimum wage changes:

California

Several California cities are increasing their minimum wage effective July 1, 2024.

Los Angeles County (unincorporated areas) has a minimum wage rate of $17.27/hour.

In addition, the minimum wage for Hotel Workers increases in these cities on July 1.

  • Los Angeles – $20.32/hour
  • Long Beach – Passed Initiative RW, increasing the minimum wage to $23/hour.  This amount will increase to $29.50 per hour by July 1, 2028.
  • Santa Monica – $20.32/hour

Finally, On May 31, 2024, the Governor of California signed into law (Senate Bill 828) California’s healthcare worker minimum wage law.  On July 1, 2024, the minimum wage for covered healthcare workers was planned to increase by the following rates:

  • Certain healthcare facilities: $23.00/hour
  • Hospitals: $18.00/hour
  • Clinics: $21.00/hour
  • Other covered healthcare facilities: $21.00/hour
  • Licensed skilled nursing facility: $21.00/hour

This action has been delayed due to an expected $46.8 billion budget deficit.  A conditional plan is to see healthcare workers receive their delayed raise by October 15.  This increase depends upon state revenues being at least 3% higher than the numbers estimated from July to September.  This conditional provision directly links the expected wage increase to the state’s financial health.

Illinois

  • Cook County

The minimum wage for Cook County was set to increase on July 1 based on the Consumer Price Index (CPI) to $14.05/hour and $8.40/hour for tipped employees.

The new Minimum Wage Ordinance (MWO) changed the threshold to any employer with four or more employees.  The new minimum wage for MWO employers is $16.20/hour and $11.02/hour for tipped workers.  If a tipped worker’s wages plus tips do not equal at least the full minimum wage, the employer must make up the difference.

In addition, the minimum wage to be paid under city contracts or concessionaire agreements is $17.40/hour.

Maryland

  • Montgomery County (N.W. of Washington DC) minimum wage laws starting July 1, 2024
    • Large Employers (51 or more employees) – $17.15/hour
    • Mid-sized Employers (11– 50 employees) – $15.50/hour
    • Small Employers (10 employees or less) – $15.00/hour

Future rate change increases are tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Minnesota

  • Minneapolis – minimum wage laws for Large Employers (101 or more employees) stay at the January 1, 2024, rate of $15.57/hour. The minimum wage for Small Employers (100 employees or less) increases to match the amount of $15.57/hour.
  • Paul – minimum wage laws changes:
    • Macro Employers (10,001 or more employees) – $15.57/hour (effective January 1, 2024)
    • Large Employers (101 – 10,000 employees) – $15.57/hour (effective July 1, 2024)
    • Small Employers (6 – 100 employees) – $14.00/hour (effective July 1, 2024)
    • Micro Employers (5 employees or fewer) – $12.25/hour (effective July 1, 2024)

Nevada

Nevada eliminated its two-tier minimum wage rates effective July 1, 2024.  It used to depend on whether an employer offered health benefits.  Effective July 1, 2024, the minimum wage in Nevada is $12/hour for all employees.

Oregon

The minimum wage in Oregon is based on county except for the Urban Growth Boundary around the Portland Metro Area.  Oregon does not have a separate rate for tipped employees.

Effective July 1, 2024, minimum wage rates in Oregon are:

  • Non-urban counties – $13.70/hour
  • Standard counties – $14.70/hour
  • Portland metro area – $15.95/hour

Click on the Interactive Map to see the minimum wage by county.

In 2024, the minimum wage for standard counties will be adjusted annually based on the increase, if any, to the U.S. City Average Consumer Price Index for All Urban Consumers.  The rate for non-urban counties will be $1 lower than standard counties and $1.25 higher for the Portland Metro Area.

Washington

  • Bellingham instituted a new minimum wage that started on May 1, 2024.  The minimum wage shall be $1.00 more than the applicable Washington State minimum wage.  The state minimum wage is $16.28/hour, thus the Bellingham minimum is $17.28/hour.  This amount will go to $2.00 more than the applicable Washington State minimum wage starting May 1, 2025.
  • Renton passed Initiative 23-02 in November 2023.  This law creates the same two-tiered system matching Tukwila starting July 1, 2024.
    • Large Employers (more than 500 employees worldwide, and all franchisees associated with a franchisor or a network of franchises with franchisees that employ more than 500 employees in aggregate) – $20.29/hour.  This rate matches the highest non-industry-based minimum wage in the U.S.
    • All Other Employers (15-500 employees worldwide or annual gross revenue over $2 million) – $18.29/hour
  • Tukwila has a two-tiered system:.
    • Large Employers (more than 500 employees worldwide, and all franchisees associated with a franchisor or a network of franchises with franchisees that employ more than 500 employees in aggregate) –$20.29/hour.  This amount remains unchanged from January 1, 2024.  This rate is the highest non-industry-based minimum wage in the U.S.
    • All Other Employers (15-500 employees worldwide or annual gross revenue over $2 million) – $19.29/hour.  This new rate starts July 1, 2024

Burien and Unincorporated King County also passed legislation to increase the minimum wage to some of the highest in the U.S. starting January 1, 2025.

Washington D.C.

Beginning July 1, 2024, the minimum wage in the District of Columbia will increase based on the Consumer Price Index to $17.50/hour for all workers, regardless of the employer’s size.

Washington D.C. voters approved Initiative 82 in 2022, which gradually increased the tipped employee wage until it equals the standard wage on July 1, 2027.  The base minimum wage for tipped employees increases to $10/hour.  However, if an employee’s hourly tip earnings (averaged weekly) added to the base minimum wage do not equal the District’s full minimum wage, the employer must pay the difference.

Here is one other state that has minimum wage changes before the end of the year:

Florida

On November 3, 2020, Florida voters approved Amendment 2, which gradually increases the state’s minimum wage to $15.00/hour by 2026.  The next increase starts on September 30, 2024, when the rate goes to $13/hour.

For Tipped employees, the employer must pay a direct wage.  The direct wage is calculated as equal to the minimum wage ($12.00/hour) minus the 2003 Fair Labor Standards Act (FLSA) allowable tip credit ($3.02) or a direct hourly wage of $8.98/hour as of September 30, 2022.  In addition, tipped employees’ total wages must be no lower than the state minimum wage.

The rate will increase by $1 per hour annually for all employees on September 30 until it reaches $15/hour.

What to do next

If your company is affected by minimum wage changes, notify your workforce management and payroll company as soon as possible.  These laws affect payroll, and reporting, and forecasting.  If you need help, please contact Time Equipment Company at sales@timeequipment.com or 800-997-8463.

*This information simplifies complex Acts as it is understood by Time Equipment Company. It is not to be taken as legal advice. The regulations for this program are changing. For further information contact your state or local Department of Labor.