Idaho HB 485 (2025) would have raised minimum wage, but did not pass.
In 2025, Idaho House Bill 485 proposed a significant overhaul of the state's minimum wage structure, including a phased increase to $17.00 per hour by 2027 and adjustments to the tipped wage. However, the bill did not advance through the legislative session. As a result, Idaho's minimum wage and related labor standards continue to align with the federal Fair Labor Standards Act (FLSA).
Idaho HB 485 (2025)
Proposed phased minimum wage increase to $17.00/hour by 2027, with CPI-U indexing thereafter. Also included changes to training and tipped wages. Did not pass.
What those rules do as an Idaho shift is created.
Because HB 485 failed to pass, Teambridge continues to apply Idaho's standing minimum wage and labor laws. This means that for any shift worked within Idaho, the federal minimum wage framework is the primary reference for wage calculations.
No new minimum wage rates applied
Teambridge does not apply the proposed $12.00, $15.00, or $17.00 minimum wage rates from HB 485. All wage calculations default to the current federal minimum wage of $7.25 per hour, as Idaho law § 44-1502 auto-tracks the federal rate.
Tipped wage remains $3.35 cash
The proposed increase to the tipped minimum wage from $3.35 to $6.00 (2025) and then $8.00 (2027) is not in effect. Teambridge continues to calculate tipped employee wages based on the $3.35 cash wage and a maximum tip credit of $3.90 per hour.
Training wage remains at $4.25
The elimination of the under-20 training wage, as proposed by HB 485, did not occur. Teambridge continues to correctly apply the $4.25 per hour training wage for employees under 20 years of age during their first 90 consecutive calendar days of employment.
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Idaho's minimum wage framework remains aligned with federal standards.
Idaho's minimum wage laws are primarily governed by the Idaho Minimum Wage Law (IMWL) and are designed to mirror federal regulations. The failure of HB 485 means no state-specific minimum wage increases or significant changes to related wage provisions have been enacted. Employers in Idaho must continue to adhere to the federal minimum wage, tipped wage, and training wage standards.
Idaho Code § 44-1502. Minimum wage.
Except as hereinafter otherwise provided, every employer shall pay to each of his employees wages at a rate of not less than the federal minimum wage as prescribed by the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. section 206, or its successors.
Idaho Code § 44-1502(4). Local preemption.
No political subdivision of the state of Idaho shall establish a minimum wage that exceeds the requirements of this chapter.
Minimum Wage & Tipped Employees
Idaho law explicitly ties its minimum wage to the federal minimum wage. As such, the current state minimum wage is $7.25 per hour. For tipped employees, the state allows for a tip credit, meaning employers can pay a cash wage of $3.35 per hour, provided that the employee's tips plus the cash wage equal or exceed the federal minimum wage. The maximum tip credit allowed is $3.90 per hour.
Training Wage & Local Preemption
Idaho also permits a training wage of $4.25 per hour for employees under 20 years of age during their first 90 consecutive calendar days of employment. This is consistent with federal FLSA provisions. Furthermore, Idaho Code § 44-1502(4) includes a preemption clause, explicitly prohibiting cities and counties within Idaho from establishing local minimum wages that exceed the state's (and thus, the federal) requirements. This ensures a uniform wage standard across the entire state.
Teambridge navigates Idaho's federal-floor wage framework automatically.
While HB 485 failed, Teambridge's compliance engine is always alert to legislative changes. Our system is designed to immediately adapt to any new minimum wage laws, but for now, it continues to apply Idaho's current federal-floor standards, ensuring accuracy in every paycheck.
Federal minimum wage enforcement
Teambridge automatically ensures all employee wages in Idaho meet or exceed the federal minimum of $7.25 per hour, as mandated by Idaho Code § 44-1502.
Accurate tip credit application
For tipped employees, Teambridge calculates the correct cash wage of $3.35 per hour and applies the appropriate tip credit, verifying that total compensation meets the federal minimum wage requirement.
Correct training wage tracking
Our system identifies eligible employees under 20 years old and applies the $4.25 training wage for the initial 90-day period, then automatically adjusts to the standard minimum wage.
State-wide wage uniformity
Teambridge respects Idaho's preemption clause, ensuring no local minimum wage ordinances are erroneously applied, maintaining a consistent wage floor across all Idaho operations.
People also ask.
What is the current minimum wage in Idaho?
As of April 2026, the current minimum wage in Idaho is $7.25 per hour, which is tied directly to the federal minimum wage as prescribed by the Fair Labor Standards Act (FLSA).
Did Idaho HB 485 pass?
No, Idaho House Bill 485, introduced in the 2025 legislative session, did not pass. It failed to advance, meaning its proposed minimum wage increases and other changes did not become law.
What was proposed in Idaho HB 485?
HB 485 proposed a phased increase to Idaho's minimum wage: $12.00 (July 2025), $15.00 (July 2026), and $17.00 (July 2027), with CPI-U indexing from 2028. It also aimed to eliminate the under-20 training wage and raise the tipped wage from $3.35 to $6.00 (2025) scaling to $8.00 (2027).
Can cities in Idaho set their own higher minimum wage?
No, Idaho Code § 44-1502(4) explicitly prohibits any political subdivision of the state from establishing a minimum wage that exceeds the state's (federal-aligned) requirements. This means local ordinances cannot set higher minimum wages.
What is the tipped minimum wage in Idaho?
The tipped minimum wage in Idaho is $3.35 per hour cash wage. Employers can take a tip credit of up to $3.90 per hour, provided that the employee's total wages (cash wage plus tips) meet or exceed the standard federal minimum wage of $7.25 per hour.
Does Idaho have a training wage?
Yes, Idaho allows for a training wage of $4.25 per hour for employees under 20 years of age during their first 90 consecutive calendar days of employment, consistent with federal FLSA provisions.