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Minimum Wage Updates for 2024

Written by Megapay | Dec 19, 2023 6:59:55 PM

The minimum wage was originally established by the Fair Labor Standards Act and provides a federal minimum that hourly employees must be paid. Federally, this rate has not been increased since July 2009.

Alabama, Louisiana, Mississippi, South Carolina, and Tennessee currently use the federal minimum wage. Georgia and Wyoming have a minimum wage lower than the federal limit of $7.25/hr. Because of this, in these states, the federal minimum applies.

 The national "Fight for Fifteen" movement continues to grow, pushing for a national minimum wage of $15 per hour. That said, the majority of states have a higher set minimum wage - including New York and New Jersey.

Both New York and New Jersey also have special rules for certain types of workers and has a lower minimum for employees who routinely receive tips.

Keep reading to learn more about the 2024 minimum wage updates for both New York and New Jersey.

New York

New York has changed when increases come into effect from December 31 to January 1. This is unlikely to affect most employers, but might have an impact on restaurants, bars, etc.

In New York City, Suffolk, Nassau, and Westchester Counties, the minimum wage will increase to $16 per hour. In the future, rates will be linked to the Consumer Price Index (CPI) and automatically increase on January 1. For the rest of the state, the minimum wage will increase to $15.

Tipped workers will receive a minimum of $12.50 or $13.35 per hour and $10 or $10.65 for food service workers. This is dependent on where they work.

Home health aides are a special case and will receive a minimum of $17.55 or $18.55.

Full-time exempt workers must be paid at least $1,124.20 a week or $58,458.40 a year.

New Jersey

Minimum wage increases for New Jersey will happen on January 1, 2024. For normal hourly employees, rates will go up to $15.13 an hour. For tipped employees, there will be an increase to $5.26 per hour with a $9.87 per hour tip credit. (The tip credit means that employees can assume the employee will make that amount in tips. You are still obligated to make up the difference if your tipped employees aren't receiving at least minimum wage. You cannot claim any part of your employees' tips).

If you have fewer than 6 employees, your minimum will be $13.93 an hour, and if you are a farm, you only have to pay $12.81 an hour. However, long-term facility staff must be pad $18.13 an hour.

Both New York and New Jersey benefit people caring for the elderly, but in different ways.

New Jersey's state constitution requires annual increases linked to the consumer price index. So you can expect the minimum to go up each year.

Keeping up with minimum wage increases is an important part of compliance, as well as being the right thing to do. To find out more about how our platform can help you with minimum wage increases and other compliance issues, contact MegaPay today.

If you have employees outside of New York and New Jersey, please find each state's updated rate here!

 

State Minimum Wage 2022 Minimum Wage 2023

New Minimum Wage 2024

Alabama $7.25 $7.25 $7.25
Alaska $10.34 $10.85 $11.73
Arizona $12.80 $13.85 $14.35
Arkansas $11.00 $11.00 $11.00
California $15.00 $15.50 $16.00
Colorado $12.56 $13.65 $14.42
Connecticut $14.00 $14.00 $15.69
Delaware $10.50 $11.75 $13.25
District of Columbia $16.10 $17.00 $17.00
Florida $10.00 $11.00 $12.00
Georgia $7.25 $7.25 $7.25
Hawaii $12.00 TBD $14.00
Idaho $7.25 $7.25 $7.25
Illinois $12.00 $13.00 $14.00
Indiana $7.25 $7.25 $7.25
Iowa $7.25 $7.25 $7.25
Kansas $7.25 $7.25 $7.25
Kentucky $7.25 $7.25 $7.25
Louisiana $7.25 $7.25 $7.25
Maine $12.75 $13.80 $14.15
Maryland $12.50 $13.25 $15.00
Massachusetts $14.25 $15.00 $15.00
Michigan $9.87 $10.21 $10.33
Minnesota $10.33 $10.59 $10.85 OR $8.85 with ARR >$500k
Mississippi $7.25 $7.25 $7.25
Missouri $11.15 $12.00 $12.30
Montana $9.20 $9.95 $10.30
Nebraska $9.00 $10.50 $12.00
Nevada $10.50 $10.00 $12.00 *effective July 1, 2024
New Hampshire $7.25 $7.25 $7.25
New Jersey $13.00 $14.13 $15.13 or $13.73 with fewer than 6 employees
New Mexico $11.50 $12.00 $12.00
New York $13.20 $14.20 $15.00 or $16.00 for specific counties
North Carolina $7.25 $7.25 $7.25
North Dakota $7.25 $7.25 $7.25
Ohio $9.30 $10.10 $10.45
Oklahoma $7.25 $7.25 $7.25
Oregon $13.50 $14.20 $14.20 until June 30, 2024
Pennsylvania $7.25 $7.25 $7.25
Rhode Island $12.25 $13.00 $14.00
South Carolina $7.25 $7.25 $7.25
South Dakota $9.95 $10.80 $11.20
Tennessee $7.25 $7.25 $7.25
Texas $7.25 $7.25 $7.25
Utah $7.25 $7.25 $7.25
Vermont $12.55 $13.18 $13.67
Virginia $11.00 $12.00 $12.00
Washington $14.49 $15.74 $16.28
West Virginia $8.75 $8.75 $8.75
Wisconsin $7.25 $7.25 $7.25
Wyoming $7.25 $7.25 $7.25