Planning for 2024: Minimum Wage Increases

Businesses across the United States are now well into the third quarter of 2023.  It is naturally time to start thinking ahead to 2024 and there are several states in the Northeast who will experience a minimum wage increase on January 1, 2024.  Employers thinking ahead to the new year should start budgeting for the increased costs associated with the higher minimum wage.

Let’s start with New York.  In New York City as well as the Counties of Nassau, Suffolk and Westchester, the new 2024 minimum wage will be $16.00 per hour.  The minimum wage will rise to $15.00 elsewhere in the State.  In both 2025 and 2026, the minimum wage will increase an additional $.50 per year.  Thereafter, the minimum wage will increase at a rate determined by the Consumer Price Index.

In New Jersey, Governor Murphy announced a minimum wage increase to $15.13.  This exceeds the $15.00 goal set when Governor Murphy first passed the law incrementally increasing the State’s minimum wage.  Seasonal and small employers will see an increase to $13.73.  Agricultural workers’ minimum wage will now be $12.81.  The minimum cash wages for tipped workers will increase to $5.26 and long term care staff members will see an increase to $18.13.

Like New York and New Jersey, Connecticut instituted an incremental minimum wage increase to $15.00.  That minimum was already achieved but, in January 2024, the State’s first ever economic indicator adjustment will come into play increasing the minimum wage from $15.00 to $15.69.

Last but not least, we should acknowledge Pennsylvania’s first minimum wage increase since 2009.  In a close vote over this past summer, the Pennsylvania legislature passed a law incrementally increasing the minimum wage to $15.00 by 2026.  In January 2024, Pennsylvania’s minimum wage will increase from $7.25 to $11.00.

If your company operates in a state not mentioned above, it may be wise to research whether there is an upcoming minimum wage increase taking effect in 2024.