2025 Minimum Wage Updates: New Rates Effective July 1 

The following minimum wage increases were recently announced and will take effect on July 1, 2025.

Alaska

• Hourly minimum wage: $13.00 (up from $11.91)

California – Healthcare workers

• Hospitals or integrated health systems with 10,000 or more full-time employees, dialysis clinics and covered healthcare facilities run by large counties: $24.00 (up from $23)
• Safety-net hospitals and covered healthcare facilities run by small counties: $18.63 (up from $18)
• Several localities have also increased their minimum wage beginning July 1, 2025.

District of Columbia

• Hourly minimum wage: $17.95 (up from $17.50)
• Tipped employees’ base minimum: $12 (up from $10)

Oregon

• Hourly minimum wage: $15.05 (up from $14.70)
• Non-urban counties: $14.05 (up from $13.70)
• Portland metro: $16.30 (up from $15.95)

Previously Announced 2025 Minimum Wage Changes

The following minimum wage increases were announced earlier in the year and are included here for reference. Minimum wage laws vary between states and local jurisdictions. For detailed information, please consult your state’s Department of Labor.

Effective Jan. 1, 2025

Alaska

• Hourly minimum wage: $11.91 (up from $11.73)

Arizona

• Hourly minimum wage: $14.70 (up from $14.35)
• Tipped employee hourly minimum cash wage: $11.70 (up from $11.35) based on a maximum tip credit of $3

California

• Hourly minimum wage: $16.50 (up from $16)

Colorado

• Hourly minimum wage: $14.81 (up from $14.42)
• Tipped employee minimum wage: $11.79 (up from $11.40)

Connecticut

• Hourly minimum wage: $16.35 (up from $15.69)
• Maximum tip credit for hotel and restaurant employees: $9.97 (up from $9.31)
• Maximum tip credit bartenders: $8.12 (up from $7.46)

Delaware

• Hourly minimum wage: $15 (up from $13.25)
• Minimum cash wage: $2.23 (unchanged), based on a maximum tip credit $12.77 (up from $11.02)

Illinois

• Hourly minimum wage: $15.00 (up from $14)
• Tipped-worker minimum hourly cash wage: $9 (up from $8.40) based on a minimum tip credit of $6

Maine

• Hourly minimum wage: $14.65 (up from $14.15)
• Tipped employee hourly minimum: $7.33 (up from $7.08)

Michigan

• Hourly minimum wage: $10.56 (up from $10.33)
• Tipped employee hourly minimum: $4.01 (up from $3.93), based on a minimum tip credit of $6.55 (up from $6.40)

Minnesota

• Hourly minimum wage: $11.13 (up from $10.85)

Missouri

• Hourly minimum wage: $13.75 (up from $12.30)
• Tipped employee hourly minimum: $6.89 (up from $6.15)

Montana

• Hourly minimum wage (indexed for inflation): $10.55 (up from $10.30)

Nebraska

• Hourly minimum wage: $13.50 (up from $13)
• Tipped employee hourly minimum: $2.13 (unchanged)

New Jersey

• Small employer minimum wage: $14.53 (up from $13.73)
• Seasonal employer hourly minimum wage: $14.53 (up from $13.73)
• Agricultural employer hourly minimum wage: $13.40 (up from $12.81)
• General hourly minimum wage: $15.49 (up from $15.13)
• Long-term care facility direct care staff minimum wage: $18.49 (up from $18.13)
• General tipped employee hourly minimum: $5.62 (up from $5.26)

New York

• New York City, Long Island, and West Chester
  • Hourly minimum wage: $16.50 (up from $16)
  • Tipped service employees $13.75 (up from $13.35), tip credit of $2.75 (up from $2.65)
  • Tipped food service workers: $11 (up from $10.65), tip credit of $5.50 (up from $5.35)
  • Home healthcare aides: $18.50 (up from $18)
• Remainder of the state
  • Hourly minimum wage: $15.50 (up from $15)
  • Tipped service employees: $12.90 (up from $12.50), tip credit of $2.60 (up from $2.50)
  • Tipped food service workers: $10.35 (up from $10), tip credit of $5.15 (up from $5)
  • Home healthcare aides: $17.50 (up from $17)

Ohio

• Employers with annual gross receipts of at least $394,000: $10.70 (up from $10.45)
• Employers with annual gross receipts under $371,000: $7.25 (unchanged)
• Tipped employee hourly minimum: $5.35 (up from $5.25)

Rhode Island

• Hourly minimum wage: $15 (up from $14)
• Tipped employee hourly minimum: $3.89 (unchanged)

South Dakota

• Hourly minimum wage: $11.50 (up from $11.20)
• Tipped employee hourly minimum: $5.75 (up from $5.60)

Vermont

• Hourly minimum wage: $14.01 (up from $13.67)
• Tipped employee hourly minimum: $7.01 (up from $6.84)

Virginia

• Hourly minimum wage: $12.41 (up from $12)

Washington

• Hourly minimum wage: $16.66 (up from $16.28)
• Seattle
  • Large employers: $20.76 (up from $19.97)
  • Small employers: $20.76 (up from $17.25)

Effective Feb. 21, 2025

Michigan

• Hourly minimum wage: $12.48 (up from $10.56)
  Tipped employee hourly minimum: $5.99 (up from $4.01). tip credit of $6.49 (down from $6.55)

Effective Sept. 30, 2025

Florida

• Hourly minimum wage: $14 (up from $13)
• Minimum cash wage for tipped employees $10.98 (up from $9.98)

Need Help Navigating Wage Changes?

Our team can help you stay compliant with changing wage laws and ensure your payroll processes are up to date. Contact us today to speak with a payroll advisor.