Once again, we rang in the new year with a great many state and local minimum wage increases.
This year, 23 states—and several counties and cities—will increase their minimum wages and, where applicable, tipped minimum wage. Most of these increases went into effect on January 1, 2025.
Employers with minimum wage (and tipped minimum wage) workers should discuss newly implemented increases with counsel to ensure their compensation practices comply across all relevant jurisdictions.
Minimum Wage Increases
* Cook County’s Minimum Wage Ordinance (“MWO”) does not apply to municipalities opting out of the ordinance or adopting their own minimum wage. As such, employers should consult with counsel to ensure their compensation practices comply with applicable law.
Tipped Minimum Wage Increases
Similar to minimum wages, the start of a new year brings an increase to several state, county, and city tipped minimum wages. Employers may pay tipped employees a cash wage below the applicable minimum wage if the employee’s tips, in addition to the cash wage, equal the relevant minimum wage (often referred to as the tipped minimum wage).
The tipped minimum wage will increase in the following jurisdictions this year.
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