Minimum Wage

Under the Fair Labor Standards Act (FLSA), most nonexempt employees must be paid at least $7.25 per hour. Employers may pay a lower training wage of $4.25/hour to workers under 20 during their first 90 days, and tipped employees may earn a base wage of $2.13/hour if their tips bring them up to the federal minimum. But here’s the key: state and local laws often set higher rates—and those take priority.

California Minimum Wage Rates

As of Jan.1, 2023, California’s minimum wage rate no longer depends on employer size and will be adjusted annually to account for the cost of inflation. The table below outlines recent minimum wage rates and their respective effective dates. Employers note that California law allows the governor to temporarily suspend a rate increase if the state’s economic condition does not support it.

Connecticut Minimum Wage

Connecticut’s hourly minimum wage rate for tipped employees in the hotel and restaurant industry (other than bartenders) is $6.38. A tipped employee is defined as an individual who is engaged in an occupation in which tips or gratuities are customarily exchanged for services. The rate for tipped bartenders is $8.23.

Florida Minimum Wage

On Nov. 3, 2020, voters in Florida approved a constitutional amendment that will raise the state minimum wage rate each year until it reaches $15 per hour in 2026. The amendment did not change the tip credit Florida allows employers to deduct from their tipped employees. Since this credit will remain at $3.02, projected minimum wage rates for tipped employees are also included in the table below.

Hawaii Minimum Wage

Hawaii law complements federal law and, in some cases, prescribes more stringent or additional requirements that employers must follow. Whenever employers are subject to both state and federal laws, the law most favorable to the employee will apply.

The Hawaii Department of Labor and Industrial Relations (HDLIR) enforces compliance with minimum wage requirements and investigates violation claims.

Michigan Minimum Wage

As of July 31, 2024, the Michigan Supreme Court ruled that the legislature’s 2018 changes to the state’s minimum wage and sick leave laws were unconstitutional. The Court later clarified that the tipped minimum wage and tip credit will be phased out.

However, just before the new rules took effect, Senate Bill 8 was passed, keeping the $12.48/hour rate for February 21, 2025—but accelerating future increases. Michigan’s minimum wage will now reach $15/hour by January 1, 2027, with future increases tied to inflation (unless unemployment exceeds 8.5%).

New York Minimum Wage

State law allows private sector employers to use the tip credit and pay their tipped employees the cash wage because it assumes that the tips employees receive, when combined with the cash wage, will be sufficient to allow employees to earn wages at or above the minimum wage rate.

Stay Compliant with Confidence

Navigating federal, state, and local wage laws can be complex—especially for businesses operating in multiple locations. At Audax, we specialize in helping employers stay ahead of evolving regulations while streamlining HR and compliance operations.

If you have questions about minimum wage requirements, tipped employee rules, or updating your policies, our team is here to help.

📩 Contact Audax today to ensure your business stays compliant, competitive, and prepared.