Labor & Employment Law Update

New minimum wage increases impacting employers went into effect on Jan. 1, 2025. State minimum wage updates in jurisdictions across the nation are summarized below.

Note: This summary does not cover updates for all localities and municipalities. Therefore, employers should be mindful of and continue to follow their state and local laws.

Arizona

Arizona’s minimum wage increased to $14.70/hour.

California

• California’s minimum wage increased to $16.50/hour. California’s administrative overtime exemptions also increased to $1,320 per week ($68,640 per year).
• San Diego’s minimum wage increased to $17.25/hour.

Colorado

• Colorado’s minimum wage increased to $14.81/hour.
• Denver’s minimum wage increased to $18.81/hour.

Connecticut

Connecticut’s minimum wage increased to $16.35/hour.

Delaware

Delaware’s minimum wage increased to $15/hour.

Illinois

Illinois’s minimum wage increased to $15/hour.

Maine 

Maine’s minimum wage increased to $14.65/hour.

Michigan

Michigan’s minimum wage will increase twice in 2025. First, it increased to $10.56/hour on Jan. 1, 2025, following the usual rate increase schedule.

It will increase again on Feb. 21, 2025 to $12.48/hour in accordance with a Michigan Supreme Court ruling regarding Michigan’s Improved Workforce Opportunity Wage Act.

Minnesota

Minnesota’s minimum wage increased to $11.13/hour.

Missouri

On November 5, 2024, Missouri voters approved Proposition A, which increases Missouri’s minimum wage to $13.75/hour. However, there has been a lawsuit filed to enjoin this law, thus, we will monitor to determine if the law actually goes into effect.

Montana

Montana’s minimum wage increased to $10.55/hour.

Nebraska

Nebraska’s minimum wage increased to $13.50/hour.

New Jersey

New Jersey’s minimum wage increased to $15.49/hour for employers with six or more employees.

New York

• New York’s minimum wage increased to $15.50/hour. In addition to the minimum wage increase, New York’s salary thresholds for the executive and administrative overtime exemptions also increased to $1,161.65 per week ($60,405.80 per year).
• New York City’s minimum wage increased to $16.50/hour. In addition to the minimum wage increase, NYC’s salary thresholds for the executive and administrative overtime exemptions increased to $1,237.50 per week ($64,350 per year).

Ohio

Ohio’s minimum wage increased to $10.70/hour.

Rhode Island

Rhode Island’s minimum wage increased to $15/hour.

South Dakota

South Dakota’s minimum wage increased to $11.50/hour.

Vermont

Vermont’s minimum wage increased to $14.01/hour.

Virginia

Virginia’s minimum wage increased to $12.41/hour.

Washington

• Washington’s minimum wage increased to $16.66/hour.
• Employers with 51 or more employees must pay overtime exempt workers a salary of at least 2.25 times the minimum wage. That means an employee that meets the “duties” test for exemption must also earn at least $1,499.40 per week (or $77,968.80 per year) in order to be exempt.
• Seattle’s minimum wage increased to $20.76/hour.