Summer Savings! Get 50% off for the first 3 months. Ends July 31st.

What You Need to Know About Idaho Minimum Wage


Understanding the Idaho minimum wage is crucial for both employees and employers. This happens for a business owner who wants to be in compliance or for a worker who wants to ensure fair wages. From current and future wage standards to upcoming changes in 2024, this detailed guide gives everything for Idaho’s minimum wage and how it stacks up against other states.

A Brief History of Idaho Minimum Wage

A minimum wage in Idaho is a concept taken from, among many other states, the necessity to protect workers from exploitation and ensure a basic standard of living. The federal minimum wage came into existence in 1938 through the Fair Labor Standards Act (FLSA). States could set their own minimum wage standards, provided they were higher than that of the federal government. Idaho established the minimum wage at the state level to initially align with the federal minimum, but the state has maintained its own rate since that time.

Idaho Minimum Wage: The Current Landscape

As of 2024, the Idaho minimum wage is $7.25 per hour, just like the federal minimum wage. This rate has been effective since 2009 and has generated a lot of controversy regarding its sufficiency to cater to the cost of living in the modern economic environment.

The Debate Over Minimum Wage in Idaho

Raising the minimum wage is supported by the argument that $7.25 per hour is simply not enough for people to live on, mostly because the costs of housing, healthcare, and education are going up. They support an increase in the minimum wage so that a sufficient wage is paid to workers, and this way, poverty levels will be lessened.

On the other hand, those against it caution that raising the minimum wage will only translate into job losses as small business operators find it hard to pay for this higher expense item in their budget. They argue that this will force rationalization to carry out automation more and more or to subcontract tasks abroad, only to come back to hurt the workers whom they seek to serve.

Changes in Idaho Minimum Wage 2024

The year 2024 is a year with much anticipation and possible changes in the minimum wage in Idaho. Advocates who are in support of wage increments have been convincing legislators to raise the state’s minimum wage since they argue that the present rate has rendered them irrelevant to cost of living. Officially, no changes have been made at this point; however, there are several suggestions on how it should be done:

Proposed Increases

  1. Incremental Increases: The stepwise approach, according to some proposals, would be to raise the minimum wage incrementally each year for the next several years, eventually reaching $15 per hour. This methodology tends to decrease the impact on businesses but to give workers an incremental increase in what they make.
  2. Cost of Living Adjustments: Another feature is the provision that the minimum wage may be adjusted to reflect cost-of-living increases or inflation rates, so the wage aligns itself with the changing economies and at the same time does not need legislative fixing repeatedly.
  3. Regional Variations: Different minimum wages have been proposed for varying regions, because the economic conditions differ in various parts of Idaho. For instance, it is much expensive to live in the city; hence, the minimum wage there is relatively high as compared to others.

Time is Money

Impact on Workers and Employers

The increase in minimum wage would have severe impacts on the two parties; that is, the workers and employers. Workers would be making more money due to an increase, so their living standards get better. For employers, especially small businesses, this could translate into increased labor costs and changes in pricing, staffing, or business operations.

Comparing Idaho Minimum Wage to Other States

When considering minimum wage at the national level, the picture in Idaho is one of the lowest rates in the country. Now, over half the states have chosen to establish their higher minimum wages, acknowledging the insufficiency of the federal rate in providing for local economic conditions.

States with Higher Minimum Wages

  • Washington: This state, which sits just west of Idaho, touts a state minimum wage that’s up near $15.74 per hour, effective 2024.
  • Oregon: Minimum wages in this southwest neighbor vary, running between $13.50 to $14.75 per hour, depending on the region.
  • California: California’s minimum wage is $15.50 per hour for all employers.

States with Similar Minimum Wages

  • Wyoming: The minimum wage of Wyoming stands at $5.15 per hour, although the employers should pay the federal rate of $7.25 per hour if they are covered by FLSA.
  • Texas: Texas follows the federal minimum wage of $7.25 per hour.

These comparisons illustrate a flexibility in the minimum wage regulations from state to state and therefore the importance of basing the setting up of wage standards on economic conditions in any given locality.

The Economic Impact of Raising the Minimum Wage in Idaho

Positive Impacts:

  1. Increased Consumer Spending: Because of a general rise in workers’ wages, increased disposable income is registered among the population, thereby boosting consumer spending in the local economy.
  2. Reduced Poverty: Raising the minimum wage can bring many working people above their poverty line, thus reducing fiscal stress for government aid programs and improving economic prosperity across the board.
  3. Improved Employee Retention: Higher wages lead to greater satisfaction with one’s job and a lower rate of turnover, which is beneficial for employers and saves resources in the form of not having to hire and train new employees.

Problems Likely to be Encountered:

  1. Increase in the Cost of Doing Business: This will place a heavier burden on employers, especially those running small businesses, who are likely to pass this cost on to consumers through increased prices on goods and services or reduce their workforce.
  2. Creation of Inflationary Pressure: According to some, high wages may create inflation, as businesspeople transfer it by increasing the price of goods to the consumer.
  3. Automation and Job Losses: Having higher wages would justify a fastening of automation due to the high wage costs; at the same time, it will bring about potential job losses.

Common Misconceptions About the Idaho Minimum Wage:

Myth 1: Minimum wage jobs are for teenagers.

While it is true that many teenagers work minimum wage jobs, a large number of minimum wage workers are adults upon whom this job rests as their only primary source of survival, which affects them in various ways. The majority of minimum wage workers are over 25 years old, though, in fact, according to the Bureau of Labor Statistics.

Myth 2: Only Low-Income Workers Benefit from Increasing the Minimum Wage

An increase in the minimum wage level can affect the economy at large. High wages usually bring about high spending, and this creates positive returns for the business world, possibly increasing job opportunities. For that matter, other employees paid little more than the minimum wage will also see their salaries go up because as a result of employers being compelled to increase their pay scales to stick to the wage gaps.

Myth 3: Increased Wages will be detrimental to ALL Business

While some businesses may be negatively impacted by an increase in wages, others may actually be positively impacted. The general effect of increases in wages is, lifting up consumer expenditure thereby boosting business sales and profit. While companies that pay above the minimum wage would have to adjust many employees’ pay grades and workers with unskilled jobs before this can become official.

Preparing for Changes in the Idaho Minimum Wage

For Employers:

  1. Do a Wage Analysis: Evaluate your current wage structure and how potential changes in the minimum wage would affect your payroll costs.
  2. Adjust Budget: One must get ready for a budgetary adjustment due to a probable increase in the cost of labor and think of alternatives on how to be more efficient.
  3. Employee Communication: Continuously update your employees about any possible changes and the effects it would probably give to their wages and conditions of work.

For Employees:

  1. Know Your Rights: Be aware of your rights under state and federal labor laws especially to any possible increase or adjustment on the minimum wage.
  2. Future Planning: Be aware of how changes in the rate of the minimum wage may impact your budget and other future financial plans.
  3. Skill Development: Creation of further skills through investing in education is going to increase employability as well as the chance of earning higher wages.

See Also: Hawaii Minimum Wage: What Employers Need to Know


The Idaho minimum wage is a critical issue that affects workers, employers, and the broader economy. With talks of potential increases in 2024, it is important to keep everyone well-informed and included. Whether you are an advocate for a living wage or simply trying to prepare for the changes in your own budget in response to the effects of increased wages, knowing these details about the Idaho minimum wage is critical. Employees, with this knowledge and awareness, can help shape some of the changes and make sure it brings about a more equitable and economically successful Idaho. In addition, monitoring related concerns, including the impact of time tracking software on labor costs and productivity, may provide further perspectives on wage dynamics and on how to design wage changes in a way that will be accepted by all parties.

Alma Reed is an author and researcher dedicated to enhancing productivity. She is deeply interested in areas such as time management, increasing productivity, and fostering healthy routines. Through her writing, she aims to assist people in boosting their job performance and attaining an ideal balance between work and life.

Speak with our Expert.

Get a free demo of our Best Time and Expense Tracking Software.

Table of Contents

Related articles
Improves your team's productivity and conveniently manage all your work timelines

Sign up for free. No credit card required.

The Best Time and Expense Tracking Software for Your Business

Optimize your business operations with our timesheet software. Our intuitive platform simplifies time and expenses, ensuring accuracy and efficiency in managing your projects and finances. 

No credit card is required and you have unlimited time on the Free plan.