On January 1, 2024, 22 states increased their minimum wages as a result of legislative action or inflation adjustments. Nearly 10 million workers are expected to receive more than $6 billion in additional wages from these state minimum wage increases.
These states include Alaska, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont and Washington.
Local jurisdictions also may vote to require a minimum wage that’s higher than their state’s required minimum. On January 1, 38 individual cities and counties increased their minimum wages to be above their state’s minimum wage. These jurisdictions are in Arizona, California, Colorado, Maine, Minnesota, New Mexico and Washington state.
How Higher Minimum Wages Affect Employers
If you have workers based in the states and jurisdictions that raised their minimum wage on January 1, you will need to make sure your systems are up to date to keep you compliant with federal and state labor laws in terms of wage and hour reporting.
Even if you’re not currently affected by these minimum wage hikes, it’s important to prepare for an increase in minimum wages if they occur in the future. For some small business owners, an increase in minimum wage may require strategic decisions about staffing, automation and technology that will mitigate the higher business costs of paying higher wages.
MarathonHR is always happy to provide guidance on wage and compensation practices, as well as controlling business costs. If your business needs to adjust or prepare for a minimum wage increase, please schedule a call with us to see how we can help.