The bill amends Section 44-1502 of the Idaho Code to revise the state's minimum wage laws. It establishes a new minimum wage schedule, increasing the minimum wage to $12.00 per hour effective July 1, 2025, $15.00 per hour effective July 1, 2026, and $17.00 per hour effective July 1, 2027. Additionally, the bill sets new minimum wage rates for tipped employees, starting at $6.00 per hour in 2025 and increasing to $8.00 per hour by 2027. The bill also clarifies that if the combined wages and tips of a tipped employee do not meet the minimum wage, the employer is required to make up the difference.

Furthermore, the bill introduces a provision for annual adjustments to the minimum wage based on the cost of living, starting July 1, 2028. These adjustments will be calculated using the consumer price index for urban consumers and published by the Idaho Department of Labor. The bill prohibits local governments from setting minimum wages higher than those established in this section. An emergency clause is included, making the act effective on July 1, 2025.

Statutes affected:
Bill Text: 44-1502