Blog post >> Visit the Paycom blog to learn more (2024)

This is a state minimum wage update and does not cover any updates to specific local, municipal or industry minimum wages or rates for contractors or tipped workers. Please consult legal counsel for guidance on how to stay compliant with all the minimum wage laws where your business operates.

Minimum wages can change every year, depending on the various state and federal laws. While some states follow federal guidance, others set their own requirements. Understanding which rules affect the state(s) you operate in is key to compliance.

What is the federal minimum wage?

The current federal minimum wage is $7.25 per hour. States with their own hourly wage requirements may exceed this rate, but employers specifically covered by the Fair Labor Standards Act (FLSA) must adhere to the federal minimum wage.

What legislation established the federal minimum wage?

President Franklin D. Roosevelt signed the FLSA into law in 1938. At the time, the law placed the minimum wage at just 25 cents per hour. The law also created standards for child labor and overtime pay.

How often does the federal minimum wage rise?

While the FLSA is an evolving document, it doesn’t automatically increase the minimum wage. For example, the current rate was enacted in 2009 — almost 15 years ago. The president must sign any change to the federal minimum wage into law.

But that doesn’t stop certain states from forming their own standards.

What is the minimum wage in each state for 2024?

Don’t get blindsided by an unexpected compliance change. To make it easier to identify updates, we’ve provided a list of 2024 and 2023’s hourly minimum wages by state. Keep in mind this list doesn’t consider every city or municipality with its own wage requirement.

Understand these hourly minimum wage rates for any of the states where your business operates:

State2024 Minimum Hourly Wage 2023 Minimum Hourly Wage
Alabama$7.25$7.25
Alaska$11.73$10.85
Arizona$14.35$13.85
Arkansas$11.00$11.00
California$16.00$15.50
Colorado$14.42$13.65
Connecticut$15.69$15.00
Delaware$13.25$11.75
Florida$13.00 (effective Sept. 30, 2024)$12.00
Georgia$7.25$7.25
Hawaii$14.00$12.00
Idaho$7.25$7.25
Illinois$14.00$13.00
Indiana$7.25$7.25
Iowa$7.25$7.25
Kansas$7.25$7.25
Kentucky$7.25$7.25
Louisiana$7.25$7.25
Maine$14.15$13.80
Maryland$15.00$13.25 for employers with 15 or more workers; $12.80 for smaller businesses.
Massachusetts$15.00$15.00
Michigan$10.33$10.10
Minnesota$8.85 for small employers and $10.85 for large employers.*$8.63 for small employers and $10.59 for large employers.
Mississippi$7.25$7.25
Missouri$12.30$12.00
Montana$10.30$9.95
Nebraska$12.00$10.50
Nevada$12.00 (effective July 1, 2024)$10.25 for employers offering qualifying health benefits; $11.25 for all others.
New Hampshire$7.25$7.25
New Jersey$15.13 for most employers; $13.73 for seasonal and small employers who have less than six workers.$14.13 for most employers; $12.93 for seasonal and small employers who have less than six workers.
New Mexico$12.00$12.00
New York$16.00 for New York City, Long Island and Westchester; $15.00 for the rest of the state.$15.00 for New York City, Long Island and Westchester; $14.20 for the rest of the state.
North Carolina$7.25$7.25
North Dakota$7.25$7.25
Ohio$10.45$10.10
Oklahoma$7.25$7.25
Oregon$1.25 over the standard minimum wage for employers in the Portland metro; $1 less than the standard minimum wage for non-urban counties. ** (Effective July 1, 2024)$15.45 for employers in the Portland metro; $13.20 for non-urban counties; and $14.20 for all others.
Pennsylvania$7.25$7.25
Rhode Island$14.00$13.00
South Carolina$7.25$7.25
South Dakota$11.20$10.80
Tennessee$7.25$7.25
Texas$7.25$7.25
Utah$7.25$7.25
Vermont$13.67$13.18
Virginia$12.00$12.00
Washington, D.C.$17.00 until July 1, 2024 (the new rate is not yet determined)$17.00
Washington$16.28$15.74
West Virginia$8.75$8.75
Wisconsin$7.25$7.25
Wyoming$7.25$7.25

*Minnesota defines “large employers” as businesses with $500K or more in gross revenue.
**Oregon’s minimum wage is adjusted annually based on the increase, if any, to the U.S. City average Consumer Price Index for All Urban Consumers.

Which states are increasing their minimum wage in 2024?

Over half the country is experiencing a minimum wage spike in 2024, including:

AlaskaHawaiiMontana
ArizonaIllinoisNebraska
CaliforniaMaineNevada
ColoradoMarylandNew Jersey
ConnecticutMichiganOhio
DelawareMinnesotaOregon
FloridaMissouriRhode Island
South DakotaVermontWashington, D.C.
Washington

California fast-food minimum wage

Effective April 1, fast-food workers in California will be covered under a new minimum wage requirement of $20 per hour. This wage increase applies only to employers with 60 or more establishments nationwide. This means that even franchises with a small presence in California will still need to comply.

If you’re unsure if your business is covered under this law, consult a licensed legal professional.

Which state has the lowest minimum wage?

Georgia and Wyoming’s hourly minimum wage are tied at $5.15. However, employers covered by the FLSA must adhere to the federal requirement of $7.25.

Which state has the highest minimum wage?

While Washington is technically the state with the highest hourly minimum wage at $16.28, Washington, D.C. has the highest rate across the country: $17.00!

Which states have minimum wages of $15.00 or more?

Seven states and Washington, D.C. have minimum wages of $15.00 or more:

  • Washington
  • New York
  • Massachusetts
  • New Jersey
  • Connecticut
  • California
  • Maryland

Adhering to federal and state minimum hourly wage guidance helps you remain compliant and ensures your success. And government and compliance tool helps you stay on top of new laws and regulations that affect your business.

Follow the Paycom blog for regular compliance updates and more.

DISCLAIMER: The information provided herein does not constitute the provision of legal advice, tax advice, accounting services or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional legal, tax, accounting or other professional advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation and for your particular state(s) of operation.

Blog post >> Visit the Paycom blog to learn more (2024)

FAQs

What is Paycom about? ›

Paycom houses employee payroll information such as benefits elections, direct deposit account information, garnishment management, payroll cycles and more. The process depends on the organization's needs but can be as simple as checking information and approving amounts. It's that easy!

How many people work at Paycom? ›

Paycom Software total number of employees in 2021 was 5,385, a 27.67% increase from 2020.

Who owns Paycom? ›

Chad Richison is founder and co-CEO of Paycom, one of the first companies to process payroll completely online. Richison, a former senior manager at payroll firm ADP, founded Paycom in 1998. He took Paycom public on the New York Stock Exchange in 2014 and owns about 14% of its shares.

Who is Paycom competitor? ›

Top Competitors and Alternatives of Paycom

The top three of Paycom's competitors in the Payroll Management category are Paylocity with 14.41%, Sage Payroll with 12.44%, QuickBooks Time with 8.92% market share.

What is the highest paying job at Paycom? ›

What is the highest salary at Paycom? The highest-paying job at Paycom is a VP of Sales with a salary of $403,719 per year (estimate). What is the lowest salary at Paycom? The lowest-paying job at Paycom is a Receptionist with a salary of $38,896 per year (estimate).

What is Paycom CEO salary? ›

Paycom Software's CEO is Chad Richison, appointed in Jan 1998, has a tenure of 26.25 years. total yearly compensation is $3.12M, comprised of 26.2% salary and 73.8% bonuses, including company stock and options. directly owns 11.87% of the company's shares, worth $1.35B.

Does Paycom pay well? ›

Average Paycom hourly pay ranges from approximately $9.81 per hour for Janitor to $30.48 per hour for Senior Specialist. Salary information comes from 5,012 data points collected directly from employees, users, and past and present job advertisem*nts on Indeed in the past 36 months.

Why do people use Paycom? ›

With Paycom, employees enter and manage their own HR data — and even do their own payroll — all within one easy-to-use app. This saved HR and accounting teams 2,600 hours per year*, allowing them to focus on more strategic, impactful causes in your organization.

How is Paycom different from ADP? ›

And with global payroll capabilities, freelance and contractor pay abilities, and our native paycard, Wisely, ADP has the tools you need as your business grows. Paycom does not offer global payroll, freelance/contractor management, or a marketplace for partner integrations.

What are the benefits of Paycom? ›

That's why Paycom offers benefits like:
  • matching 401(k) and employee stock purchase plan.
  • low-cost basic life and AD&D insurance.
  • college tuition savings plans.
Dec 13, 2023

How does Paycom pay you? ›

Within Paycom's Employee Self-Service®, Everyday allows employees to receive their daily earned wages* on the next day, rather than waiting for their usual payday. Payments are deposited to their Vault Visa® Payroll Card.

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