On November 5, 2024, several states passed key measures impacting state minimum wage rates and paid sick leave mandates. Here’s a summary of the notable changes:
Alaska
Minimum Wage Increase: Alaska’s hourly minimum wage was raised to $13.00 with phased increases through 2027.
Paid Sick Leave: Employers with 15 or more employees must now provide up to 56 hours of paid sick leave annually. This leave can be used for illness, injury, or reasons related to domestic violence, sexual assault, or stalking.
Maine
City of Portland Minimum Wage Change: Starting January 1, 2025, the minimum wage for hourly workers in Portland will increase to $15.50 per hour.
Tip Change: Employers must pay employees who earn more than $185/month in tips a direct wage of at least $7.75/hour effective January 1, 2025. If tips plus direct wage does not average $15.50/hourweekly, employers must make up the difference.
Missouri
Minimum Wage Increase: Missouri's minimum wage was raised to $13.75/hour starting January 1, 2025. It will increase to $15.00/hour in 2026, with annual adjustments based on the Consumer Price Index.
Paid Sick Leave: Effective May 1, 2025, employees will accrue 1 hour of paid sick leave for every 30 hours worked. Employers with 15 or more employees must allow up to 56 hours of paid sick leave per year. Smaller employers (14 or fewer employees) are capped at 40 hours.
Nebraska
Paid Sick Leave: Employers with 20 or more employees must provide up to 56 hours of paid sick leave annually, effective October 1, 2025. Employers with fewer than 20 employees must provide up to 40 hours.
Medical Marijuana: Initiative Measure 438 legalizes medical marijuana use in Nebraska.
Oregon
Labor Peace Agreement: Cannabis businesses must have a labor peace agreement with a bona fide labor organization (a union) to obtain or renew their license to operate in Oregon.
These new laws will significantly affect employers in the respective states.
If you are in a state with mandated paid sick leave, reach out to your Human Resource Business Partner to discuss state requirements and how mandated paid sick leave coordinates with existing paid time off benefits, if applicable.
*This article does not constitute legal advice, and does not address state or local law.