In 2024, as the cost of living in the United States rises, many states have made considerable steps to raise the minimum wage, guaranteeing that workers earn a more livable salary. While the federal minimum wage remains $7.25 per hour, numerous states have set significantly higher wage floors.
These states set the standard for ensuring that employees are fairly compensated for their work, indicating a rising awareness of economic gaps and the need for wage adjustments.
In this article, we will look at the five states with the highest minimum wages in 2024, highlighting the economic and social forces driving these changes and what they signify for workers in those areas.
1. Washington: $16.28
In 2024, Washington’s state minimum wage is $16.28 per hour, the highest in the country. Some cities in Washington have higher minimum wages.
Employers in Washington can pay some employees less than the state minimum wage. For example, they can pay workers aged 14 or 15 less, but their salary must still be at least 85% of the state minimum wage.
Every year in mid-September, Washington modifies the state minimum wage to reflect cost-of-living increases. Washington’s new state minimum wage will become effective on January 1, 2025. The Washington Labor and Industries Department has yet to announce what it will be.
2. California: $16
As of January 1, 2024, California’s state minimum wage is $16 per hour. However, companies in certain industries or localities are required to pay a higher minimum wage.
For example, fast-food workers in California will be paid a minimum wage of $20 per hour beginning April 1, 2024. State legislation establishes precise standards for fast-food outlets to identify which employees are eligible for this higher minimum pay.
California also intends to raise the minimum wage for healthcare personnel between October 15, 2024, and January 1, 2025. Anyone working in a healthcare facility must be paid this higher minimum wage, which runs from $18 to $23 per hour, depending on the type of facility.
3. Connecticut charges $15.69
Connecticut’s minimum wage will be $15.69 per hour starting January 1, 2024. That is 4.6% higher than it was in 2023.
Connecticut’s state minimum wage is adjusted annually by the employment cost index published by the United States Department of Labor. Although the state has not declared any increases to the minimum wage for 2025, it is likely to climb again. Expect to hear about the change around October 2024.
4. New Jersey costs $15.13
The New Jersey minimum wage was raised to $15.13 per hour on January 1, 2024. Minors (working in specific industries), vehicle salespeople, and outside salespeople are exempt from the minimum wage regulation.
In New Jersey, tipped employees are required to earn at least the state minimum wage in addition to their hourly compensation. Employers must pay tipped employees at least $5.26 per hour and make up the difference if their hourly earnings are less than $15.13.
On January 1, 2025, the New Jersey minimum wage will be raised to account for inflation. It is unclear what the new minimum wage will be.
5. Oregon charges $14.70
Oregon’s normal state minimum wage will be $14.70 on July 1, 2024. The Portland Metro region pays $15.95 per hour, whereas nonurban counties pay $13.70 per hour.
The Oregon Bureau of Labor and Industries sets the state minimum wage annually to reflect changes in the Consumer Price Index for All Urban Consumers. These adjustments take effect on July 1 of each year.