Stay Ahead: 2025 Minimum Wage Updates Coming for Restaurant Operators

Minimum wage hikes are coming to 60+ jurisdictions in 2025. Here's what you need to know. 

 As we approach 2025, it’s time for restaurant operators to prepare for changes to minimum wage rates that will impact their store locations. Laws surrounding wages are regularly evolving at the state and local levels and many brands will feel the impact of these rising wages, as labor is already one of a restaurant’s largest operating costs.

But the cost of non-compliance can be even worse, leading to costly fines, employee dissatisfaction, and reputational damage. As you prepare for 2025, its important to be aware of how these changes will impact your operation so you can adjust accordingly and maintain compliance. And remember, establishing a well-defined compliance program can help your restaurant stay proactive and adaptable in the new year.

What to do next?

Are your stores impacted by changes to wage rates? Don't get overwhelmed. Labor laws can be tough to keep up with, but you don't have to do it alone. Crunchtime Labor & Scheduling provides a detailed report that tracks updates to labor laws just like these so you can stay compliant without the hassle.

Here are some next steps to help you stay compliant:

1. Update your labor rules to comply with new pay rates
   If you use a Labor & Scheduling platform that automates compliance, it's time to update your labor rules. This is typically done by an admin or someone with special access at the above-store level. Make sure the new hourly rate is adjusted for all impacted jurisdictions and employees.
   
   Once the new pay rate is updated in the system, this change should be reflected in all aspects of your labor solution, from scheduling to payroll. If you are unsure if your current scheduling platform supports labor rules or compliance, you can learn more here.
   
   
2.  Communicate with your team
   Next, it might be helpful to send out a communication to management at all impacted store locations and make sure they are aware of the new minimum wage rate. If you have a training program, ensure that the new wage is updated in any training modules so all employees are educated correctly moving forward
   
   
3. Adjust your labor budget
   Depending on how many stores are impacted and the increase in wages, it may be necessary to adjust your labor budget. Consider how increases will affect not just hourly employees but also salaried workers whose pay may need adjustments to meet threshold requirements.
   
   The wage increase may also ​​necessitate a review of your current menu prices or offerings. You can analyze how price adjustments could help you offset higher labor costs without alienating customers. Note that pricing is a delicate balancing act that often requires more studying. 

Related Read: The Restaurant Operators Guide to Compliance

Conclusion: Stay proactive to stay compliant 

Labor laws are constantly changing and evolving. Keep an eye on changing legislation and discussions about wage increases that can shape the labor landscape. Anticipating these changes in advance can help give your restaurant a competitive edge as you navigate compliance. 

Ready to learn more?

Request a demo today to see how Crunchtime Labor & Scheduling can help your restaurant transform compliance.