This bill aims to implement an annual cost-of-living increase to the state minimum wage rate starting in 2026. It establishes that the minimum wage will be adjusted each January 1 based on the consumer price index, ensuring that the wage reflects inflation and maintains its purchasing power. Additionally, the bill specifies that tipped employees will receive an hourly wage that is 25% of the prevailing minimum wage rate, plus tips, while ensuring that all tips received by these employees are retained by them, with the option to pool tips among wait staff.

Furthermore, the bill mandates that state agencies include provisions in public contracts to protect contractors and subcontractors from wage increases resulting from the state minimum wage hikes. It requires that employees working under these contracts receive wage increases that align with the state minimum wage adjustments. The bill also introduces a definition of "consumer price index" to the Minimum Wage Act, enhancing clarity in the legislation. The effective date for these provisions is set for July 1, 2025.

Statutes affected:
introduced version: 50-4-21, 50-4-22