State

Title

Description

Alaska

Ballot Measure No. 1

Under current law, the minimum wage is $11.73 per hour and there is no requirement that employers provide paid sick leave to their employees.

Ballot Measure No. 1 would: (1) gradually raise the minimum wage to $15.00 per hour by 2027 with future increases tied to inflation, (2) allow full-time employees to earn up to 40 hours of paid sick leave per year and (3) prohibit employers from forcing employees to participate in employer-sponsored religious and political meetings unrelated to their jobs.

Arizona

Proposition 138

Under current law, employers may pay tipped employees up to $3.00 per hour less than the minimum wage.

Proposition 138 would amend the Arizona Constitution to allow an employer to pay up to 25% per hour less than the minimum wage if the employer can establish that the employee is paid at least the minimum wage plus $2.00 per hour for all hours worked.

California

Proposition 32

Under current law, the minimum wage is tied to inflation and is anticipated to be $17.00 per hour effective January 1, 2025. (A higher minimum wage applies to fast food workers and certain healthcare workers.)

Proposition 32 would raise the minimum wage as follows: For employers with 26 or more employees, to $17.00 immediately, $18.00 effective January 1, 2025. For employers with 25 or fewer employees, to $17.00 effective January 1, 2025, $18.00 effective January 1, 2026.

Massachusetts

Question 5

Under current law, tipped employees must be paid a minimum of $6.75 per hour, provided that their total tips and wages bring them to at least $15.00 per hour.

Question 5 would gradually increase the minimum hourly wage an employer must pay a tipped worker, over the course of five years, on the following schedule:

• To 64% of the state minimum wage on January 1, 2025
• To 73% of the state minimum wage on January 1, 2026
• To 82% of the state minimum wage on January 1, 2027
• To 91% of the state minimum wage on January 1, 2028
• To 100% of the state minimum wage on January 1, 2029

Missouri

Proposition A

Under current law, the minimum wage is $12.30 per hour, which is adjusted annually according to the Consumer Price Index. There is no requirement that employers provide paid sick leave.

Proposition A would:

• Increase the minimum wage effective January 1, 2025 to $13.75 per hour, with increases of $1.25 per hour each year until 2026 when the minimum wage would be $15.00 per hour
• Adjust the minimum wage based on changes in the Consumer Price Index each January beginning in 2027
• Require all private-sector employers to provide one hour of paid sick leave for every 30 hours worked

Nebraska

Initiative 436

Under current law, employers are not required to provide paid sick leave to employees.

Initiative 436 would give eligible employees the right to earn paid sick time for personal or family health needs as follows:

• Employees of employers with fewer than 20 employees would accrue up to 40 hours of paid leave each year
• Employees of employers with 20 or more employees would accrue up to 56 hours of paid leave per year

For additional information concerning this Alert, please contact:

Workforce Tax Services - Employment Tax Advisory Services

• Kristie Lowery | kristie.lowery@ey.com
• Kenneth Hausser | kenneth.hausser@ey.com
• Debera Salam | debera.salam@ey.com