House Bill 24-0001

SENATE:

HOUSE OF REPRESENTATIVES:

• Maggie Ross

• Dave Price

• Lorena Morton

• Celia Simmons

• Laurie Roberts

The purpose of this bill is to raise the state minimum wage for hourly workers and establish a fair minimum wage threshold for salaried employees to ensure a living wage across all industries, while promoting economic stability and reducing income inequality.

The legislature finds that:

• The current minimum wage is insufficient to meet the rising cost of living.

• Many salaried employees are paid wages that do not align with the number of hours worked, effectively putting them below minimum wage standards.

• Raising the minimum wage will stimulate local economies by increasing consumer spending and reduce employee turnover.

This Act seeks to:

• Ensure fair compensation for all hourly and salaried employees.

• Create economic opportunities for workers to support themselves and their families.

• Adjust wages to align with inflation and regional living costs.

State Minimum Wage Increase:

• Effective January 1, 2025, the state minimum wage for hourly workers shall increase to $15.00 per hour.

• Each subsequent year, the minimum wage will be indexed to inflation based on the Consumer Price Index (CPI), with adjustments made annually on January 1.

Local Government Authority:

• Local governments may set a higher minimum wage based on their regional economic conditions but may not establish a minimum wage lower than the state standard.

Exceptions and Exemptions:

• Youth workers (under 18 years old) may be paid 85% of the state minimum wage for the first 90 days of employment.

• Employers with fewer than 10 employees may apply for a one-year waiver, provided they can demonstrate financial hardship.

Minimum Salary Requirement:

• Effective January 1, 2025, all salaried employees shall be entitled to a minimum annual salary equivalent to 1.5 times the state minimum wage for a 40-hour work week.

• Salaried employees earning below this threshold must be transitioned to hourly wage calculations or have their salary adjusted to meet the minimum standard.

Overtime Protections:

• Salaried employees earning below 2 times the state minimum wage shall be eligible for overtime pay based on hours worked beyond 40 hours per week.

• Employees not eligible for overtime shall receive compensation adjustments aligned with inflation and wage increases.

• Only salaried employees with administrative / desk duties shall be fully exempt from overtime pay. 

Enforcement:

• The Department of Labor will oversee enforcement of this Act and investigate complaints related to wage violations.

• Employers found in violation shall be subject to fines and required to provide back pay to affected employees.

Penalties:

• Employers failing to comply with the minimum wage standards shall be subject to fines of up to $10,000 per violation.

• Repeated violations may result in suspension of business licenses until compliance is achieved.

provisions or applications of the Act that can be given effect without the invalid provision or application.

SECTION 5. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

Bill Text