With reassessments in regional wage models, speculated climate shifts seem to have found an unlikely companion; as temperatures decrease, the U.S. minimum wage, tip, and exemption employee pay are projected to increase in some parts of the country from January 1, 2024. This development is a part of scheduled state- and local-level wage increments and it seems that late 2023’s rate adjustments have set the path for the upcoming year.
Employers must take heed of these changes to determine the minimum salaries they are obliged to pay their non-exempt, tipped, and select exempt employees. Prior to discussing the projected rates for 2024, it is worth noting some significant rate-related developments and discussions surrounding the impact of inflation that transpired in the second half of 2023.
For more detailed coverage of the impending wage revisions, the article titled “Temperatures May Decrease, but U.S. Minimum Wage, Tip, and Exempt Employee Pay Will Increase on January 1, 2024, in Parts of the Country” penned by the legal publication, Littler, provides substantial context and guidance. It is indeed a worthwhile read for legal professionals who advise businesses on legal compensation and wage matters. Find more about their analysis here.
Pay close attention to the paths taken by individual states and regions in the application of these rate changes. They may give insight into how federal standards might eventually shape up or provide opportunities for comparative study. Overall, as legal professionals, it’s our job to ensure we stay ahead of the curve, and these changes are no exception.