As we approach 2025, a few states have announced adjustments to their minimum wage rates, effective January 1, 2025. These changes reflect ongoing efforts to align wages with the cost of living and inflation.
Key 2025 Minimum Wage Updates:
- California: The statewide minimum wage is set to increase to $16.50 per hour on January 1, 2025. Additionally, Proposition 32, which proposed raising the minimum wage to $18 per hour, was on the ballot in November 2024. As of November 13, 2024, the proposition was trailing, with approximately 51% voting “no,” but the race remained too close to call.
- Michigan: The minimum wage will increase to $10.56 per hour on January 1, 2025, and further to $12.48 per hour on February 21, 2025.
- New York: Employers should prepare for wage adjustments effective January 1, 2025, with increases to $16.50 per hour in New York City, Long Island, and Westchester County, and $15.50 per hour in the rest of the state.
- Oregon: The state’s minimum wage will remain at $14.20 through the first half of the year. Effective July 1, 2025, the rate will increase to $14.70, reflecting Oregon’s annual adjustment tied to inflation. Employers should note this mid-year adjustment and plan accordingly.
Employers are advised to review these changes and adjust their payroll systems accordingly to ensure compliance with the new 2025 minimum wage rates. Staying informed about state-specific regulations is crucial for maintaining compliance and supporting fair labor practices.
2025 Minimum Wage Rates by State
Below is a comprehensive overview of the 2025 minimum wage rates for each state:
| State | 2025 Minimum Wage Rate |
|---|---|
| Alaska | $12.00 |
| Arizona | $14.70 |
| California | $16.50 |
| Colorado | $14.81 |
| Connecticut | $16.35 |
| Delaware | $15.00 |
| Florida | $14.00 |
| Hawaii | $16.00 |
| Illinois | $15.00 |
| Maine | $14.50 |
| Maryland | $15.50 |
| Michigan | $10.56 (effective Jan 1, 2025)
$12.48 (effective Feb 21, 2025) |
| Minnesota | $11.00 (large employers)
$9.00 (small employers) |
| Missouri | $13.75 |
| Montana | $10.50 |
| Nebraska | $13.00 |
| Nevada | $12.50 |
| New Jersey | $15.50 (large employers)
$14.00 (small employers) |
| New York | $16.50 (NYC, Long Island, Westchester)
$15.50 (rest of state) |
| Ohio | $10.80 |
| Oregon | $14.70 (effective July 1, 2025) |
| Rhode Island | $15.00 |
| South Dakota | $11.50 |
| Vermont | $14.00 |
| Washington | $16.50 |
Note: Some states have scheduled mid-year adjustments or multiple increases within the year. Employers should verify the specific effective dates and any regional variations within each state.
States Following the Federal Minimum Wage
States without a minimum wage law or with state minimum wages set below the federal level defer to the federal minimum. The federal minimum wage has been $7.25 per hour since 2009.
For 2025, these states will continue to follow the federal minimum wage of $7.25 unless there are updates announced later:
- Alabama
- Georgia (state minimum wage is $5.15 but defers to federal)
- Idaho
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Mississippi
- New Hampshire
- North Carolina
- North Dakota
- Oklahoma
- Pennsylvania
- South Carolina
- Tennessee
- Texas
- Utah
- Wisconsin
- Wyoming (state minimum wage is $5.15 but defers to federal)
