2024 Minimum Wage Guide: How Much is the Minimum Wage in Each State?

Employers will want to have a game plan for communicating changes to employees. Open conversations and transparency assure workers that new legislation translates directly to their wallets. Below, we outline a few important notes to consider as you start your communication plan.

Minimum Wage Considerations and Exemptions

The Department of Labor (DOL) website is an outstanding resource for further guidance on the federal minimum wage. There, employers and their workers will find an “Employment Law Guide,” a Q and A about the federal minimum wage, information on Youth Minimum Wage, and additional Interpretive Guidance.

Tipped employees: Under the Federal Labor Standards Act (FLSA), employers are authorized to pay tipped employees at least $2.13 an hour in direct wages if they receive pay that is at least equal to the federal minimum wage with tips. Otherwise, employers are required to make up the difference. Some states also have minimum wage laws specific to tipped employees. In some jurisdictions, the minimum cash wage for tipped employees increases when the minimum wage increases. Other jurisdictions, like Alaska, California, Minnesota, and Montanan, do not allow employers to apply a tip credit toward the minimum wage. 

Young workers: Certain employers may be able to pay youth workers at a rate below the established minimum wage. For example, according to the FLSA, employers have the option to individuals under the age of 20 a minimum wage of not less than $4.25 per hour. In other jurisdictions such as Connecticut, the youth minimum wage is determined as a percentage of the established minimum wage.

Please note: Although this is an option, it is often easier from an administrative point of view to pay the $7.25 minimum wage rate from the offset, as missing the 90 days can lead to legal issues. It also can be unpopular with employees to receive such low pay and may be a competitive disadvantage.

Full-time students: Employers can obtain a certificate from the DOL as part of The Full-time Student Program to pay students in retail or service stores, agriculture, or colleges and universities. Students receive at least 85% of the minimum wage, with daily hours limited to 8 and weekly hours limited to 20 when school is in session. Students can work up to 40 hours when school is not in session.

How to notify employees of minimum wage increases

Some states have distinct requirements regarding notifying employees about wage changes. Some require the use of specific forms, potentially impacting the onboarding process. When establishing location-specific requirements, prioritize communication.  Employers should clearly convey the timing for each worker to expect an updated paycheck and provide any logistical details for their preparation.