Workers in New England states looking forward to a bump up in minimum wages in 2024
In Vermont, the state’s minimum wage will reach $13.67, climbing $0.49 from the current $13.18 wage. The annual adjustment also affects the minimum wage for tipped workers, which will tick up from $6.59 to $6.84 per hour.
Maine will see its hourly minimum wage tick up from $13.80 to $14.15 per hour. Maine requires annual adjustments to the minimum wage based on the cost of living. Portland is pushing its city minimum wage from $14 to $15. The state’s new tipped wage in 2024 will be $7.08 per hour.
The minimum wage in Connecticut will rise from the current rate of $15.00 per hour to $15.69, the highest in New England. Beginning Jan. 1, and occurring annually each following Jan. 1, the wage will be adjusted according to the US Department of Labor’s calculation of the employment cost index.
Massachusetts’ minimum wage will remain at $15 per hour in 2024, although there is a campaign to hike the wage again to $20.
New Hampshire continues to have the lowest minimum wage in New England, matching the federal wage of $7.25. State lawmakers have defeated multiple attempts to increase it in recent years.
The New England states are among 20 raising minimum wages for workers, further widening the gap between state requirements and the federal minimum wage, which has been static at $7.25 an hour since July 2009. In several states, the new minimum will more than double that rate.
In Massachusetts, advocates are pushing a ballot question that would phase out the state’s service rate which lets restaurants pay workers $6.75 an hour if tips make up the difference between that and the state’s $15 minimum wage. Under the question, the service rate would end by 2029.
Massachusetts voters are ready to move away from outdated wage practices and towards a system that guarantees dignity, justice, and economic security for all workers, said Saru Jayaraman, president of One Fair Wage.
The Massachusetts Restaurant Association opposes the question, saying the highest-paid employees in any restaurant are tipped employees, frequently averaging $20, $30, and sometimes even $50 per hour.
The US Department of Labor has also announced a proposed rule that would let 3.6 million more workers qualify for overtime.
Workers in New England states can look forward to an increase in minimum wages in 2024. Vermont will see its minimum wage climb to $13.67, a $0.49 increase from the current rate of $13.18. Tipped workers’ minimum wage will also rise from $6.59 to $6.84 per hour. In Maine, the hourly minimum wage will tick up from $13.80 to $14.15. Maine requires annual adjustments to the minimum wage based on the cost of living, and Portland is pushing its city minimum wage from $14 to $15, with the new tipped wage in 2024 being $7.08 per hour. Connecticut’s minimum wage will rise from $15 to $15.69, making it the highest in New England. Massachusetts will keep its minimum wage at $15 per hour, but there is a campaign to increase it to $20. New Hampshire has the lowest minimum wage in New England, matching the federal wage of $7.25, with no recent attempts to increase it.
This move is part of a nationwide trend, with many states raising their minimum wages. The federal minimum wage has remained stagnant at $7.25 per hour since July 2009, making the gap between state requirements and the federal minimum wage even wider. In several states, the new minimum wage will more than double the federal rate.
In Massachusetts, there is a campaign to phase out the service rate, which allows restaurants to pay workers $6.75 per hour if tips make up the difference between that and the state’s minimum wage of $15. Advocates argue that such wage practices are outdated and that all workers deserve dignity, justice, and economic security. However, the Massachusetts Restaurant Association opposes the campaign, highlighting that tipped employees often earn much higher wages through tips.
Additionally, the US Department of Labor has proposed a rule that would enable 3.6 million more workers to qualify for overtime.
The increasing minimum wages in New England states aim to provide workers with a more livable income and address issues of income inequality. These changes will impact various sectors, particularly the service industry where tipping is common. As the debate continues, it remains to be seen how the evolving landscape of minimum wages will shape the future of work and labor standards across the region and the country.
