This bill amends Section 44-1502 of the Idaho Code to revise the state's minimum wage provisions. The current minimum wage of $7.25 per hour will be replaced with a tiered increase, starting at $12.00 per hour effective July 1, 2025, followed by $15.00 per hour on July 1, 2026, and reaching $17.00 per hour by July 1, 2027. Additionally, the bill establishes new minimum wage rates for tipped employees, which will increase from the current $3.35 per hour to $6.00 in 2025, $7.00 in 2026, and $8.00 in 2027. Employers will be required to ensure that the total compensation for tipped employees meets or exceeds the minimum wage.

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 also 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