Minimum Wages & Compliance Changes 

TABLE OF CONTENTS

1. Minimum wage increases

State minimum wage increases
Local minimum wage increases

2. Federal updates

3. State and local updates

Minimum wage increases

State

Hourly Minimum Wage Rate

Alaska

Arizona

California

Colorado

Connecticut

Delaware

Hawaii

Illinois

Maine

Maryland

Michigan

Minnesota

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

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

Missouri

$12.30

Montana

Nebraska

New Jersey

$15.13 employers with six or more employees

$13.73 for 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)

Ohio

Rhode Island

South Dakota

Vermont

Washington

Federal updates

November 1, 2023

New Form I-9 must be used.  U.S. Citizenship and Immigration Services announced a new version of Form I-9 to verify the identity and employment authorization of employees. Employers must use the new version.

January 1, 2024

2024 federal contractor minimum wage increase announced. Federal contractors covered under EO 13658 must pay at least a minimum wage of $12.90 per hour to non-tipped employees and pay tipped employees at least a minimum cash wage of $9.05 per hour. Federal contractors covered under EO 14026 must pay at least a minimum wage of $17.20 per hour to employees. Generally, EO 14026 pertains to covered contracts that were entered into, renewed, or extended on or after January 30, 2022.

Note: Beginning January 1, 2024, EO 14026 eliminates the lower cash wage that contractors may pay tipped employees performing work on or in connection with covered contracts.

IRS announces 2024 benefit plan contribution limits. The Internal Revenue Service announced the dollar limitation for 2024 on employee salary reductions for contributions to health flexible spending accounts; the monthly limitation regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass; and the maximum amount that can be excluded from an employee’s gross income for qualified adoption expenses.

March 11, 2024

U.S. Department of Labor adopts new independent contractor test. A final rule changes the test for determining whether a worker is an employee or independent contractor under the Fair Labor Standards Act. The new test considers six factors (instead of five), including the investments made by the worker and the potential employer.

State and local updates

Alabama

December 31, 2023

Alabama to exclude overtime pay from state taxation. Alabama excludes amounts received by a full-time hourly wage-paid employee as compensation for work performed in excess of 40 hours in a week from gross income (for state income tax purposes). 

Alaska

January 1, 2024

Alaska increases the minimum salary required for overtime exemption. The minimum salary required for overtime exemptions in 2024 increased to at least $938.40 per week.

California

January 1, 2024

California amends wage theft notice requirements.
California amended notice requirements under the state’s Wage Theft Prevention Act and released an updated wage theft notice.

California expands year-end notice requirement. California significantly expanded a requirement for employers to notify employees about federal and state earned income tax credits.

California adds employment protections for off-duty cannabis use. California prohibits employers from discriminating against individuals because of their use of cannabis while off duty and expressly prohibits an employer from requesting information from an applicant relating to the applicant’s prior use of cannabis. 

California expands paid sick leave requirement. California expanded the amount of paid sick leave to which employees are entitled, provided guidance and made other changes.

California increases the minimum salary required for overtime exemption. The minimum salary required for overtime exemptions in 2024 increased to at least $1280 per week.

California raises minimum pay for overtime exemptions for 2024. The California Department of Industrial Relations announced an increase to the pay rates that computer software employees and physicians must receive  to be exempt from overtime.  

California requires reproductive loss leave. California employers with five or more employees must provide time off to employees who experience a certain covered reproductive loss event.  

Berkeley, CA, adopts scheduling ordinance for certain industries. Employers in certain industries in Berkeley, CA, must follow specific scheduling practices beginning January 1, 2024.

Colorado

January 1, 2024

Colorado amends pay and opportunity transparency rules. Colorado amends the state’s rules for pay and opportunity transparency in internal and external job postings. 

Colorado sets paid family and medical leave premiums. For employers with 10 or more employees, the employer’s and employee’s share of the premiums are 0.45 percent of wages each (a total of 0.9 percent). For employers with fewer than 10 employees, only the employee must pay a share of the premium (0.45 percent of wages).

Colorado increases the minimum salary required for overtime exemption. The minimum salary required for overtime exemptions in 2024 increased to at least $1057.69 per week.

Colorado releases model tax credit notice. Colorado released a model notice for employers that are required to provide an annual notice to employees about the availability of certain tax credits.

Connecticut

October 1, 2023

Connecticut expands paid sick leave law. Eligible employees may use paid sick leave to attend to their emotional and psychological well-being in lieu of attending a regularly scheduled shift, or if they are a parent or guardian of a child who is a victim of family violence or sexual assault.

District of Columbia

June 30, 2024

District of Columbia to require job listings disclose pay information. The District of Columbia will require employers to disclose in job listings the projected minimum and maximum hourly rate or salary for the position. 

Hawaii

January 1, 2024

Hawaii requires job listings to disclose pay information. Hawaii employers with 50 or more employees must disclose the hourly rate or salary range for positions in job listings. 

Hawaii broadens its equal pay law. Hawaii employers must ensure employees who fall in protected characteristic categories receive equal pay for performing substantially similar work to other employees.

Illinois

December 31, 2023

Cook County adopts new paid leave ordinance. Employers with at least one covered employee working in Cook County must provide paid leave that employees can use for any reason.

January 1, 2024

Illinois clarifies equal pay reporting requirements. Illinois clarifies a requirement for employers with 100 or more employees working in Illinois to obtain an Equal Pay Registration Certificate.

Illinois amends notice requirements. Illinois employers with employees that don’t regularly report to a physical workplace must meet certain notice posting requirements.

Illinois amends personnel records access requirements.  An employer must, upon the employee's written request, email or mail a copy of the requested record to the employee's email or mailing address.

Illinois requires certain employers to offer organ donation leave. Illinois employers with 51 or more employees must provide paid organ donation leave to employees. 

Illinois expands bereavement leave requirements. Illinois employees may be eligible for a longer leave entitlement under the law if they experience the loss of a child by suicide or homicide. 

Illinois requires employers to provide paid leave. Most Illinois employers must provide employees with up to 40 hours of paid leave that they may use for any reason. Illinois has published guidance on its paid leave law. 

Illinois requires pre-tax transportation benefits requirement. Certain Illinois employers must offer covered employees an opportunity to use pre-tax dollars for the purchase of a “transit pass,” via payroll deduction.

Maine

October 25, 2023

Maine expands equal pay law. Maine amended the state’s equal pay law to address race-based discrimination in pay.

Maine bars mandatory employer meetings on religious or political matters. Maine prohibits employers from taking adverse action against employees because they refuse to attend an employer-sponsored meeting that communicates the opinion of the employer about religious or political matters. 

Maine amends tip pooling rules. Maine employees who don’t customarily and regularly receive tips may participate in tip pooling, provided the employer pays the full minimum wage and doesn’t use the tip credit. 

January 1, 2024

Maine increases the minimum salary required for overtime exemption. The minimum salary required for overtime exemptions has increased to at least $816.35 per week.

Massachusetts

November 1, 2023

Massachusetts employees may supplement paid family leave with paid time off. Employees receiving Paid Family and Medical Leave benefits in Massachusetts are entitled to supplement those benefits with available accrued paid leave.

Minnesota

January 1, 2024

Minnesota to require employers to provide paid sick leave. Minnesota employers must provide paid sick leave to employees who perform work for at least 80 hours in a year in Minnesota.

Bloomington, Minnesota amends sick leave ordinance. Bloomington, Minnesota more closely aligned its sick leave ordinance with a new state paid sick leave law that took effect on January 1, 2024.

Saint Paul, Minnesota amends sick leave ordinance for 2024. Saint Paul, Minnesota more closely aligned its sick leave ordinance with a new state paid sick leave law.

Montana

January 1, 2024

Montana modifies taxation of tipped income. Tipped income is taxable to employees for Montana state income tax purposes.

Nevada

January 1, 2024

Nevada expands domestic violence leave law. Nevada expanded leave protections to apply to victims, and the family members and household members of victims of sexual assault.

New Jersey

October 22, 2023

New Jersey adds protections for service employees. New Jersey added various employment protections for service employees during changes of ownership.

New York

November 13, 2023

New York expands unemployment benefits notice requirements. New York expanded the circumstances under which an employer must provide notice to employees of their eligibility for unemployment benefits. 

November 17, 2023

New York expands restrictions on non-disclosure provisions in certain agreements. New York further limited the terms employers may include in release agreements related to discrimination, harassment and retaliation. 

November 22, 2023

New York City prohibits height and weight discrimination. New York City prohibits employers from discriminating on the basis of an individual’s height or weight. 

January 1, 2024

New York announces 2024 paid family leave employee contribution limits. The State of New York released the 2024 contribution rates for the state’s Paid Family Leave program.

New York increases the minimum salary required for overtime exemption. The minimum salary required for overtime exemptions in 2024 increased to at least $1,200 per week in New York City and Nassau, Suffolk, and Westchester Counties, and $1,124.20 per week in upstate New York.

February 15, 2024

New York extends time to file claims of unlawful discrimination. New York increases the time to file a complaint of unlawful discrimination with the Division of Human Rights from one year to three years.

Ohio

December 7, 2023

Ohio enacts recreational marijuana law. The state legalized recreational marijuana under the Act to Control and Regulate Adult Use of Cannabis, but employers may prohibit workplace usage of marijuana.

Oregon

January 1, 2024

Oregon extends new hire reporting requirements. Oregon extended new hire reporting requirements to independent contractors.

Oregon extends protections to registered apprentices and on-the-job training workers. Oregon extended certain workplace protections to registered apprentices and those in private employer on-the-job training programs.

Oregon modifies workers compensation rule. Oregon modifies temporary disability benefit payments under the state’s Workers Compensation system for claims that exist on, or arise on or after, January 1, 2024.

Oregon bolsters worker protections from hazardous conditions. Oregon prohibits employers from firing, not hiring, or discriminating against an employee or candidate who refuses to be exposed to a hazardous condition at work, if the exposure may result in serious injury or death, the decision is in good faith, and there is no reasonable alternative.

Rhode Island

January 1, 2024

Rhode Island clarifies and increases penalties for wage theft and independent contractor misclassification. Rhode Island clarified and increased certain penalties for employers that are found to have violated certain payment laws or misclassified independent contractors.

Rhode Island makes Juneteenth a state holiday. Rhode Island makes June 19th (Juneteenth National Freedom Day) a state holiday.

Washington

January 1, 2024

Washington announces 2024 paid family and medical leave premiums. Washington state announced its 2024 Paid Family & Medical Leave (PFML) premiums and released the 2024 taxable wage bases and rates when calculating state PFML premiums.

Washington employers may not rely on off-duty use of marijuana in hiring decisions. Washington prohibits employers from making a hiring decision based on an individual’s off-duty use of cannabis or certain positive pre-employment drug test results.

Washington creates long-term-care program. Beginning in 2024, the long-term care program's premium rate may be adjusted every two years, but may not be greater than 0.58 percent.

Washington increases the minimum salary required for overtime exemption. The minimum salary required for overtime exemptions increased to at least $1,302.40 per week. Employers of any size may pay exempt computer professionals by the hour, provided they pay at least $56.98 per hour.