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Bill

H 485

MINIMUM WAGES – Amends existing law to revise provisions regarding the Idaho minimum wage.

68th Legislature, 1st Regular Session (2025) Introduced by Todd Achilles

House Bill H 485 raises Idaho's minimum wage to $12 in 2025, $15 in 2026, and $17 in 2027, boosting worker pay and supporting local economies.

Reported Printed; Filed in the Office of the Chief Clerk
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Bill Summary · H 485

Summary of House Bill H 485: Minimum Wage Revision

Purpose and Intent

House Bill H 485 aims to amend existing Idaho law regarding the minimum wage, which has remained unchanged since 2009. The primary goal of this legislation is to increase the minimum wage for workers in Idaho, thereby supporting working families, reducing economic inequality, and stimulating local economies.

Key Provisions

The bill proposes the following changes to the minimum wage structure in Idaho:

  1. Minimum Wage Increases:

    • Effective July 1, 2025: Increase from $7.25 to $12.00 per hour.
    • Effective July 1, 2026: Increase to $15.00 per hour.
    • Effective July 1, 2027: Increase to $17.00 per hour.

  2. Tipped Minimum Wage Increases:

    • Effective July 1, 2025: Increase from $3.35 to $6.00 per hour.
    • Effective July 1, 2026: Increase to $7.00 per hour.
    • Effective July 1, 2027: Increase to $8.00 per hour.

  3. Annual Adjustments:

    • Starting July 1, 2028, the minimum wage and tipped minimum wage will be adjusted annually based on the Consumer Price Index for All Urban Consumers (CPI-U), ensuring that wages keep pace with inflation.

  4. Employer Responsibilities:

    • Employers must ensure that the total compensation (wages plus tips) for tipped employees meets or exceeds the minimum wage.
    • Employers are prohibited from displacing current employees to hire individuals at the lower wage rates for younger workers.

  5. Local Ordinances:

    • No local government can set a minimum wage higher than the state-mandated minimum wage.

Affected Parties

  • Employees: The bill directly benefits low-wage workers in Idaho by increasing their minimum wage and improving their financial stability.
  • Employers: Businesses will need to adjust their payroll practices to comply with the new minimum wage requirements, which may impact their operational costs.
  • Local Economies: The proposed wage increases are expected to boost consumer spending, benefiting local businesses and the economy overall.

Procedural Aspects

  • Introduced: April 3, 2025
  • Current Status: The bill has been reported printed and filed in the Office of the Chief Clerk.
  • Effective Date: The new minimum wage rates will take effect on July 1, 2025, with subsequent increases in the following years.

Conclusion

House Bill H 485 represents a significant shift in Idaho's approach to minimum wage legislation, aiming to enhance the economic well-being of workers while also addressing broader economic issues such as inequality and local economic growth. The phased implementation of wage increases and annual adjustments based on inflation are designed to provide a sustainable approach to wage growth in the state.

Compiled from official sources — confirm details with the bill’s official record.

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