Changes to Minimum Wage and How to Manage Them Effectively
There have been a few minimum wage updates to keep track of this year — which only gets more complex for businesses with multiple locations across different states and cities.
Many states updated their minimum wage on Jan 1, providing a much-needed boost to millions of workers. However, other states scheduled increases on the calendar for April, July, and September.
In this article, we’re going to help businesses simplify compliance with minimum wage updates, while staying cost-efficient and profitable, including:
A recap of states with minimum wage changes in 2024.
How to simplify compliance and help ensure your teams are being paid correctly for their hours, including overtime.
How to use AI to plan your labor according to demand and budget to avoid any overspending.
U.S. states with minimum wage updates in 2024
First, let’s do a quick roundup of key minimum wage changes scheduled this year. Below, we dive into key updates for 26 different states and districts.
Of course, the minimum wage can also differ across cities, counties, and industries, including for tipped employees. So be sure to check the minimum wage in your local jurisdiction.
| State | New Minimum Wage (per hour) | Effective Date | Old Minimum Wage (per hour) |
|---|---|---|---|
| Alaska | $11.73 | 2024-01-01 | $10.85 |
| Arizona | $14.35 | 2024-01-01 | $13.85 |
| California | $16.00 for all employees; $20.00 for fast-food workers | 2024-01-01 for all employees; 2024-04-01 for fast-food workers | $15.50 |
| Colorado | $14.42 | 2024-01-01 | $13.65 |
| Connecticut | $15.69 | 2024-01-01 | $15.00 |
| Delaware | $13.25 | 2024-01-01 | $11.75 |
| Florida | $13.00 | 2024-09-30 | $12.00 |
| Hawaii | $14.00 | 2024-01-01 | $12.00 |
| Illinois | $14.00 | 2024-01-01 | $13.00 |
| Maine | $14.015 | 2024-01-01 | $13.80 |
| Maryland | $15.00 | 2024-01-01 | $13.25 for employers with 15+ employees; $12.80 for smaller employers |
| Michigan | $10.33 | 2024-01-01 | $10.10 |
| Minnesota | $10.85 for large employers with more than $500k in gross revenue from the past year; $8.85 for smaller employers | 2024-01-01 | $10.59 for larger employers; $8.63 for smaller employers |
| Missouri | $12.30 | 2024-01-01 | $12.00 |
| Montana | $10.30 | 2024-01-01 | $9.95 |
| Nebraska | $12.00 | 2024-01-01 | $10.50 |
| Nevada | $12.00 | 2024-07-01 | $11.25 |
| New Jersey | $15.13 | 2024-01-01 | $14.13 |
| New York | $16.00 for NYC, Long Island, and Westchester; $15.00 for the remainder of the state | 2024-01-01 | $15.00 for NYC, Long Island, and Westchester; $14.20 for the remainder of the state |
| Ohio | $10.45 | 2024-01-01 | $10.10 |
| Oregon | $15.95 for Portland metro area; $13.70 for Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler Counties; $14.70 for the rest of the state | 2024-07-01 | $14.20 for urban counties; $13.20 for rural counties |
| Rhode Island | $14.00 | 2024-01-01 | $13.00 |
| South Dakota | $11.20 | 2024-01-01 | $10.80 |
| Vermont | $13.67 | 2024-01-01 | $13.18 |
| Washington | $16.28 | 2024-01-01 | $15.74 |
| District of Columbia | $17.50 | 2024-07-01 | $17.00 |
How to Simplify Compliance with Wage and Hour Laws
Wage and hour laws can be complicated. Luckily, labor law compliance software can relieve some of this burden by simplifying complex pay calculations and streamlining payroll.
It can handle tasks like recording and verifying employee hours and applying pay rates you’ve set up. It can also export payroll with a click, which can help you achieve hassle-free paydays for your team.
In addition, it can help streamline compliance with federal, state, and local laws. Its smart features can auto-calculate premium pay and overtime, and help businesses decrease errors and time spent rechecking pay calculations.
For Michael Finch, owner of Harper Logistics, managing payroll processes through Excel used to be a big hurdle, causing many mistakes when recording hours properly. These errors impacted his business’ bottom line and the accuracy and on-time payment of staff.
“I was making a lot of mistakes in terms of scheduling, understanding people’s time off, making sure that hours were properly recorded into the payroll system,” says Michael. He didn’t like the thought of employees’ needs not being met and invested in new software fast.
Since adopting smart time tracking and compliance software, payroll accuracy has skyrocketed to 100%. Now free of payroll errors, Michael can feel assured that his staff gets paid correctly every pay period. He can also finish payroll processing within minutes instead of days, which allows him to refocus his time and energy back into the business.
How to Avoid Overspending on Labor with a Little Help from AI
With labor being one of the most expensive costs for any business, managers and owners often ask us how they can avoid overstaffing when business is quiet and keep their labor costs within budget. Likewise, they don’t want to be understaffed when business is booming, which can lead to missed sales, stress for their team, and poor retention.
AI-powered demand forecasting and scheduling software is the key here. It can help businesses plan optimal staffing to match demand levels and stay within their labor budgets. This software can forecast demand through sales history data, demographics, foot traffic patterns, and even factors like the weather.
Using these insights, it can automatically create schedules with the right number of team members for every shift based on availability, training, cost, budget, and any other custom requirements. With schedules that perfectly align with demand, businesses can ensure they are on track to keep labor costs within budget. It also helps you give employees a balanced workload and the shifts that work for their specific availability.
Keeping up with minimum wage changes
Minimum wage laws change regularly, so be sure to monitor which states, cities, and industries have updated their requirements. For example, this year, California raised its minimum wage for fast-food restaurant workers to $20 per hour.
Of course, minimum wage is just one of the many labor laws businesses should be aware of. See our article here to stay up-to-date with all the essential laws every American business needs to know.
Want to simplify labor laws across your business? See how compliance software can help you manage complex regulations so you can focus on your business and your team.
Disclaimer: The information provided in this publication is for general informational purposes only. Deputy makes no representations or warranties of any kind, express or implied, with respect to the software or the information contained in this publication. While, Deputy’s software is designed to simplify shift work by assisting with hiring, onboarding, scheduling, time and attendance tracking, payroll integration, and wage and hour compliance, it is not a substitute for payroll or legal advice, nor is it intended to relieve you of your obligation to comply with the legal requirements applicable to your business. It is ultimately your responsibility to ensure that your use of Deputy complies with all applicable laws and regulations. Please review our Product Specific Terms for more information about your compliance responsibilities.