HR Tip of the Week

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Your Guide to 2024 Minimum Wages

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More than 20 states and nearly 40 local jurisdictions will increase their minimum wage rates on January 1, 2024. Below is a summary of these changes and guidelines to help you comply with your minimum wage requirements.

State minimum wage increases

The following table covers January 1, 2024 minimum wage increases for all applicable states. Some states adjust their minimum wages annually for inflation, but they haven't announced their 2024 rates yet. The table includes all of the announced state rate changes for 2024. It also includes states that typically make annual adjustments but haven't announced their 2024 rate yet. The information below applies to January 1, 2024 increases only. 



Hourly minimum wage rate effective 1/1/24








$14.42 (proposed)
















$10.85 for employers with at least $500,000 in gross sales
$8.85 for employers with less than $500,000 in gross sales







New Jersey

$15.13 for employers with six or more employees
$13.73 for seasonal employers and employers with fewer than six employees

New York 

$16.00 per hour (New York City, Long Island and Westchester County)
$15.00 per hour (rest of the state)



Rhode Island


South Dakota






Local minimum wage increases

Several cities and counties are also increasing their minimum wage effective January 1, 2024. Some local jurisdictions adjust their minimum wages annually for inflation, but they haven't announced their 2024 rates yet. The following table includes many of the announced local rate changes for 2024 as well as some other local jurisdictions that typically make annual adjustments but haven't announced their 2024 rate yet.

Local Jurisdiction

Hourly minimum wage rate effective 1/1/24

Flagstaff, AZ


Belmont, CA


Burlingame, CA


Cupertino, CA


Daly City, CA


East Palo Alto, CA

$17.00 (updated by city due to rounding error)

El Cerrito, CA


Foster City, CA   


Half Moon Bay, CA


Hayward, CA (26 or more employees)


Los Altos, CA


Menlo Park, CA


Mountain View, CA


Novato, CA (1-25 employees)


Novato, CA (26-99 employees)


Novato, CA (100 or more employees)


Oakland, CA


Palo Alto, CA


Petaluma, CA 


Redwood City, CA


Richmond, CA


San Carlos, CA


San Diego, CA


San Jose, CA


San Mateo, CA


Santa Clara City, CA


Santa Rosa, CA 


Sonoma, CA

$17.60 (26 or more employees)
$16.56 (25 or fewer employees)

South San Francisco, CA


Sunnyvale, CA


Boulder County, CO
(unincorporated areas only)


Denver, CO 


Edgewater, CO 


Portland, ME


Rockland, ME


Minneapolis, MN (more than 100 EEs)


St. Paul, MN (more than 10,000 EEs)


Las Cruces, NM


Tukwila, WA (15 to 500 EEs)


Tukwila, WA (more than 500 EEs)


SeaTac, WA


Seattle, WA


$17.25 (if employer has 1-500 employees and provides $2.72/hour in medical benefits/tips)

Other wage considerations

Tipped employees

In some jurisdictions, the minimum cash wage required for tipped employees also increases with the minimum wage. For example, in Hawaii, in 2024, employers may take a tip credit of $1.25 per hour, provided that the combined amount of the employee's direct cash wages and tips is at least $7.00 more per hour than the applicable minimum wage. Thus, for an employer to claim the tip credit in 2024, the employee must receive direct cash wages and tips of at least $21.00 per hour (at least $12.75 of which must be in direct cash wages).

Note: Some jurisdictions, such as Alaska, California, Minnesota and Montana, don't allow employers to apply a tip credit toward the minimum wage. In such cases, you must pay tipped employees the full minimum in direct cash wages. Check your state and local law for details.

Multiple minimum wage rates

If an employee is subject to more than one minimum wage requirement (such as federal, state and local), you should pay the rate most generous to the employee. For example, if your state minimum wage is $14 and the local minimum wage is $15, you must generally pay the employee at least $15 per hour, since it's higher than the state and federal minimum wage rates. Additionally, if your business is located in one state, but you have employees (such as remote workers) working in another jurisdiction, the minimum wage in the location where the employee performs work generally applies.

Note: Some requirements may only apply to businesses of a certain size, or employees who perform a certain number of work hours in that jurisdiction. Check your state and local law for details.

Employees earning more than the minimum wage

When the minimum wage increases, some employers provide a raise to employees already earning equal to or more than the new rate. While there's no obligation to provide a raise in such cases, some employees may be expecting one. Consider the potential impact on labor costs, employee morale, internal equity (how employees are paid when compared with other employees within your company based on skills and experience), and your typical merit increase schedule.

New posters and notices

Most jurisdictions require employers to post an up-to-date minimum wage notice in the workplace. 

State and federal posters are available for downloading in the HR section of RUN Powered by ADP®. ADP clients with the Labor Law Poster Compliance Update Service receive updated posters automatically. 

Your state or city may have additional notice requirements. For example, Minnesota employers are required to furnish each employee with a written notice of any change in pay before the change takes effect. Check your jurisdiction's requirements to ensure compliance.

More 2024 increases coming

Some jurisdictions schedule their changes at another point during the year. For example, several state and local jurisdictions will increase their minimum wages on July 1, 2024.

Overtime exemptions

In some states, including Alaska, California, Maine, New York and Washington, the minimum salary required to be classified as exempt from overtime is tied to the minimum wage and therefore will also increase on January 1, 2024. We cover changes to minimum salary requirements for 2024 in this Tip of the Week. 

Note: State and federal law require that certain duties tests also be satisfied to qualify for exemption from overtime.


Ensure that you understand the minimum wage rules that apply to your employees and, if applicable, make any necessary changes in RUN before January 1, 2024. Additionally, be sure to post updated minimum wage notices in each work location.

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