Hey Compliance Warriors!
As the new year approaches, we are all thinking about the new minimum wage rates and how our employees will be affected. Check out this article and chart of wage rates by state and see if you will need to make any adjustments! Read on…
Article via https://www.littler.com
Minimum wage laws can impact businesses of all sizes, whether operating nationwide, in multiple jurisdictions, or only in one city, county, or state. To help manage this challenge, we are publishing a rates-only update so employers know the minimum amount they must pay non-exempt employees. Below we detail state- and local-level changes to the minimum wage that are scheduled to occur throughout 2018. In certain places, employers may be able to count tips an employee receives toward the minimum wage. In these jurisdictions, if the direct wage an employer pays an employee plus tips equals the minimum wage, an employer’s minimum wage obligation has been met. But, if the direct wage plus tips does not equal the minimum wage, an employer must pay the employee the difference.
For employers that want more information on minimum wage-related developments that occurred in 2017 and a forecast on what to expect in 2018, we will cover these issues in the December edition of our monthly article, WPI Wage Watch: Minimum Wage and Overtime Updates. Because pending or future legislation could change minimum wage rates that become applicable on January 1 or later in 2018, we recommend employers stay apprised of developments via WPI Wage Watch and consult with counsel to confirm rates have not changed since publication.
Alaska
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | January 1, 2018 | $9.80 | $9.84 | Not applicable | No change | Prohibited | No change |
Arizona
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | January 1, 2018 | $10.00 | $10.50 | $7.00 | $7.50 | $3.00 | No change |
| Local Laws | |||||||
| Flagstaff | January 1, 2018 | $10.50 | $11.00 | $7.50 | $8.00 | $3.00 | No change |
California
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | January 1, 2018 | $10.50 (26 or more employees) |
$11.00 (26 or more employees) |
Not applicable | No change | Prohibited | No change |
| $10.00 (25 or fewer employees) |
$10.50 (25 or fewer employees) |
||||||
| Local Laws | |||||||
| Berkeley | October 1, 2018 | $13.75 | $15.00 | Not applicable | No change | Prohibited | No change |
| $12.00 (Employer youth works & job training) |
$13.25 (Employer youth works & job training) |
||||||
| Cupertino | January 1, 2018 | $12.00 | $13.50 | Not applicable | No change | Prohibited | No change |
| El Cerrito | January 1, 2018 | $12.25 | $13.60 | Not applicable | No change | Prohibited | No change |
| Emeryville | July 1, 2018 | $15.20 (56 or more employees) |
To be determined (56 or more employees) |
Not applicable | No change | Prohibited | No change |
| $14.00 (55 or fewer employees) |
$15.00 (55 or fewer employees) |
||||||
| Los Altos | January 1, 2018 | $12.00 | $13.50 | Not applicable | No change | Prohibited | No change |
| Los Angeles (City) | July 1, 2018 | $12.00 (26 or more employees) |
$13.25 (26 or more employees) |
Not applicable | No change | Prohibited | No change |
| $10.50 (25 or fewer employees) |
$12.00 (25 or fewer employees) |
||||||
| Los Angeles County (Unincorporated) | July 1, 2018 | $12.00 (26 or more employees) |
$13.25 (26 or more employees) |
Not applicable | No change | Prohibited | No change |
| $10.50 (25 or fewer employees) |
$12.00 (25 or fewer employees) |
||||||
| Malibu | July 1, 2018 | $12.00 (26 or more employees) |
$13.25 (26 or more employees) |
Not applicable | No change | Prohibited | No change |
| $10.50 (25 or fewer employees) |
$12.00 (25 or fewer employees) |
||||||
| Milipitas | January 1 & July 1, 2018 |
$11.00 | $12.00 & $13.50 |
Not applicable | No change | Prohibited | No change |
| Mountain View | January 1, 2018 | $13.00 | $15.00 | Not applicable | No change | Prohibited | No change |
| Oakland | January 1, 2018 | $12.86 | $13.23 (Estimated – Subject to Change1) |
Not applicable | No change | Prohibited | No change |
| Palo Alto | January 1, 2018 | $12.00 | $13.50 | Not applicable | No change | Prohibited | No change |
| Pasadena | July 1, 2018 | $12.00 (26 or more employees) |
$13.25 (26 or more employees) |
Not applicable | No change | Prohibited | No change |
| $10.50 (25 or fewer employees) |
$12.00 (25 or fewer employees) |
||||||
| Richmond | January 1, 2018 | $12.30 (Without benefits) | $13.41 (Without benefits) | Not applicable | No change | Prohibited | No change |
| $10.80 (With benefits) | $11.91 (With benefits) | ||||||
| San Francisco (City & County) | July 1, 2018 | $14.00 | $15.00 | Not applicable | No change | Prohibited | No change |
| $12.87 (Government supported employee) |
To be determined (Government supported employee) |
||||||
| San Jose | January 1, 2018 | $12.00 | $13.50 | Not applicable | No change | Prohibited | No change |
| To be determined (Youth training program) |
To be determined (Youth training program) |
||||||
| San Leandro | July 1, 2018 | $12.00 | $13.00 | Not applicable | No change | Prohibited | No change |
| San Mateo | January 1, 2018 | $12.00 | $13.50 | Not applicable | No change | Prohibited | No change |
| $10.50 (Nonprofit) | $12.00 (Nonprofit) | ||||||
| Santa Clara | January 1, 2018 | $11.10 | $13.00 | Not applicable | No change | Prohibited | No change |
| Santa Monica | July 1, 2018 | $12.00 (26 or more employees) |
$13.25 (26 or more employees) |
Not applicable | No change | Prohibited | No change |
| $10.50 (25 or fewer employees) |
$12.00 (25 or fewer employees) |
||||||
| Sunnyvale | January 1, 2018 | $13.00 | $15.00 | Not applicable | No change | Prohibited | No change |
Colorado
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | January 1, 2018 | $9.30 | $10.20 | $6.28 | $7.18 | $3.02 | No change |
District of Columbia
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| District Law | July 1, 2018 | $12.50 | $13.25 | $3.33 | $3.89 | $9.17 | $9.36 |
Florida
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | January 1, 2018 | $8.10 | $8.25 | $5.08 | $5.23 | $3.02 | No change |
Hawaii
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | January 1, 2018 | $9.25 | $10.10 | $8.50 (Wages and tips must equal at least $7.00 more than minimum wage) |
$9.35 (Wages and tips must equal at least $7.00 more than minimum wage) |
$.75 | No change |
Illinois
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | Not applicable | $8.25 | Same | $4.95 | Same | $3.30 | Same |
| Local Laws | |||||||
| Chicago | July 1, 2018 | $11.00 | $12.00 | $6.10 | To be determined | $4.90 | To be determined |
| Cook County | July 1, 2018 | $10.00 | $11.00 | $4.95 | To be determined | $5.05 | To be determined |
Maine
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | January 1, 2018 | $9.00 | $10.00 | $5.00 | No change | $4.00 | $5.00 |
| Local Laws | |||||||
| Portland | July 1, 2018 | $10.68 | To be determined | $5.00 | To be determined | $5.68 | To be determined |
Maryland
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | July 1, 2018 | $9.25 | $10.10 | $3.63 | No change | $5.62 | $6.47 |
| Local Laws | |||||||
| Montgomery County | (PROPOSED) July 1, 2018 |
$11.50 (All employers) |
(PROPOSED) $12.25 (51 or more employees) |
$4.00 (All employers) |
(PROPOSED) No change |
$7.50 (All employers) |
(PROPOSED) $8.25 (51 or more employees) |
| $12.00 (11-50 employees / 11+ employees & 501(c)(3) or home health services provider / 10 or fewer employees) |
$8.00 (Other) |
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Michigan
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | January 1, 2018 | $8.90 | $9.25 | $3.38 | $3.52 | $5.52 | $5.73 |
Minnesota
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | January 1, 2018 | $9.50 ($500,000 annual gross sales) |
$9.65 ($500,000 annual gross sales) |
Not Applicable | No change | Prohibited | No change |
| $7.75 (Less than $500,000 annual gross sales / Certain hotels, etc.) |
$7.87 (Less than $500,000 annual gross sales / Certain hotels, etc.) |
||||||
| Minneapolis (More than 100 employees) |
January 1 & July 1, 2018 |
State law | $10.00 & $11.25 |
Not Applicable | No change | Prohibited | No change |
| Minneapolis (100 or fewer employees) |
July 1, 2018 | State law | $10.25 | Not Applicable | No change | Prohibited | No change |
Missouri
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | January 1, 2018 | $7.70 | $7.85 (Estimated – Subject to Change)2 |
$3.85 | $3.925 (Estimated – Subject to Change) |
$3.85 | $3.925 (Estimated – Subject to Change) |
Montana
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | January 1, 2018 | $8.15 | $8.30 | Not applicable | No change | Prohibited | No change |
Nevada
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | July 1, 2018 | $7.25 (Health benefits offered) |
To be determined | Not applicable | No change | Prohibited | No change |
| $8.25 (No health benefits) |
New Jersey
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | January 1, 2018 | $8.44 | $8.60 | $2.13 (Suggested) |
No change | $6.31 | $6.47 |
New Mexico
| Jurisdiction | Date of Rate Change |
2016 Minimum Wage |
2017 Minimum Wage |
2016 Minimum Cash Wage |
2017 Minimum Cash Wage |
2016 Maximum Tip Credit |
2017 Maximum Tip Credit |
| State Law | Not applicable | $7.50 | No change | $2.13 | No change | $5.37 | No change |
| Local Laws | |||||||
| Albuquerque | January 1, 2018 | $8.80 (Without benefits) |
$8.95 (Without benefits) |
$5.30 | $5.35 | $3.50 (Without benefits) |
$3.60 (Without benefits) |
| $7.80 (With benefits) |
$7.95 (With benefits) |
$2.50 (With benefits) |
$2.60 (With benefits) |
||||
| Bernalillo County (Unincorporated) | January 1, 2018 | $8.70 (Without benefits) |
$8.85 (Without benefits) |
$2.13 | No change | $6.57 (Without benefits |
$6.72 (Without benefits) |
| $7.70 (With benefits) |
$7.85 (With benefits) |
$5.57 (With benefits) |
$5.72 (With benefits) |
||||
| Las Cruces3 | January 1, 2018 (See Footnote) |
$9.20 | $9.45 (See Footnote) |
$3.68 | $3.78 (See Footnote) |
$5.52 | $5.67 (See Footnote) |
| Santa Fe (City) | March 1, 20184 | $11.09 | To be determined | $2.13 | To be determined | $8.96 | To be determined |
| Santa Fe County (Unincorporated) | March 1, 2018 | $11.09 | To be determined | $3.32 | To be determined | $7.77 | To be determined |
New York
Generally
| Date | Fast Food Worker (New York City) |
Fast Food Worker (Outside New York City) |
New York City (11 or More Employees) |
New York City (10 or Fewer Employees) |
Nassau, Suffolk & Westchester Counties | Remainder of New York |
| Currently | $12.00 | $10.75 | $11.00 | $10.50 | $10.00 | $9.70 |
| December 31, 2017 | $13.50 | $11.75 | $13.00 | $12.00 | $11.00 | $10.40 |
| December 31, 2018 | $15.00 | $12.75 | $15.00 | $13.50 | $12.00 | $11.10 |
Tips
Generally: If an employee’s weekly tip average is less than the Low amount, a tip credit cannot be claimed. If an employee’s weekly tip average is between the Low and High amounts, the tip credit cannot exceed the Low amount. If an employee’s weekly tip average equals or exceeds the High amount, the tip credit cannot exceed the High amount.
| Date | New York City (11 or More Employees) |
New York City (10 or Fewer Employees) |
Nassau, Suffolk & Westchester Counties | Remainder of New York | ||||
| Low | High | Low | High | Low | High | Low | High | |
| Currently | $1.65 | $2.70 | $1.60 | $2.55 | $1.50 | $2.45 | $1.45 | $2.35 |
| December 31, 2017 | $1.95 | $3.20 | $1.80 | $2.95 | $1.65 | $2.70 | $1.55 | $2.55 |
| December 31, 2018 | $2.25 | $3.65 | $2.05 | $3.30 | $1.80 | $2.95 | $1.65 | $2.70 |
Hospitality Industry (Service Employee): A service employee must receive a wage of at least the hourly Cash Wage (CW), and a tip credit cannot exceed the hourly Tip Credit rate (TC), provided an employee’s weekly tip average at least the hourly Tip Threshold (TT) and the total of tips received plus wages equals or exceeds the basic minimum hourly rate (TT(R) is the tip threshold for resort hotel service employees).
| Date | New York City (11 or More Employees) |
New York City (10 or Fewer Employees) |
||||||
| CW | TC | TT | TT(R) | CW | TC | TT | TT(R) | |
| Currently | $9.15 | $1.85 | $2.40 | $6.15 | $8.75 | $1.75 | $2.30 | $5.90 |
| December 31, 2017 | $10.85 | $2.15 | $2.80 | $7.30 | $10.00 | $2.00 | $2.60 | $6.75 |
| December 31, 2018 | $12.50 | $2.50 | $3.25 | $8.40 | $11.25 | $2.25 | $2.95 | $7.60 |
| Date | Nassau, Suffolk & Westchester Counties | Remainder of New York | ||||||
| CW | TC | TT | TT(R) | CW | TC | TT | TT(R) | |
| Currently | $8.35 | $1.65 | $2.15 | $5.60 | $8.10 | $1.60 | $2.10 | $5.45 |
| December 31, 2017 | $9.15 | $1.85 | $2.40 | $6.15 | $8.65 | $1.75 | $2.25 | $5.85 |
| December 31, 2018 | $10.00 | $2.00 | $2.60 | $6.75 | $9.25 | $1.85 | $2.40 | $6.25 |
Hospitality Industry (Food Service Worker): A food service worker must receive a wage of at least the hourly Cash Wage (CW), and a tip credit cannot exceed the below-specified hourly rate (TC) provided the total of tips received plus the wages equals or exceeds the hourly total minimum wage rate (MW). A tip credit is not permitted for fast food employees.
| Date | NYC (11 or More Employees) | NYC (10 or Fewer Employees) | Nassau, Suffolk & Westchester Counties | Remainder of New York | ||||||||
| CW | TC | MW | CW | TC | MW | CW | TC | MW | CW | TC | MW | |
| Currently | $7.50 | $3.50 | $11.00 | $7.50 | $3.00 | $10.50 | $7.50 | $2.50 | $10.00 | $7.50 | $2.20 | $9.70 |
| Dec. 31, 2017 | $8.65 | $4.35 | $13.00 | $8.00 | $4.00 | $12.00 | $7.50 | $3.50 | $11.00 | $7.50 | $2.90 | $10.40 |
| Dec. 31, 2018 | $10.00 | $5.00 | $15.00 | $9.00 | $4.50 | $13.50 | $8.00 | $4.00 | $12.00 | $7.50 | $3.60 | $11.10 |
Ohio
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | January 1, 2018 | $8.15 | $8.30 | $4.08 | $4.15 | $4.07 | $4.15 |
Oregon
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law (General) | July 1, 2018 | $10.25 | $10.75 | Not applicable | No change | Prohibited | No change |
| State Law (Urban) | July 1, 2018 | $11.25 | $12.00 | ||||
| State Law (Nonurban) | July 1, 2018 | $10.00 | $10.50 |
Rhode Island
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | January 1, 2018 | $9.60 | $10.10 | $3.89 | No change | $5.71 | $6.21 |
South Dakota
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | January 1, 2018 | $8.65 | $8.85 | $4.325 | $4.425 | $4.325 | $4.425/hr. |
Vermont
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | January 1, 2018 | $10.00 | $10.50 | $5.00 | $5.25 | $5.00 | $5.25 |
Washington State
| Jurisdiction | Date of Rate Change |
2017 Minimum Wage |
2018 Minimum Wage |
2017 Minimum Cash Wage |
2018 Minimum Cash Wage |
2017 Maximum Tip Credit |
2018 Maximum Tip Credit |
| State Law | January 1, 2018 | $11.00 | $11.50 | Not applicable | No change | Prohibited | No change |
| Local Laws | |||||||
| SeaTac | January 1, 2018 | $15.34 | $15.64 | Not applicable | No change | Prohibited | No change |
| Seattle | January 1, 2018 | $15.00 (Schedule 1 Minimum Wage) |
$15.45 (Schedule 1 Minimum Wage) |
Not applicable | No change | Prohibited | No change |
| $13.50 (Schedule 1 Minimum Wage with Medical Benefits) |
$15.00 (Schedule 1 Minimum Wage with Medical Benefits) |
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| $11.00 (Schedule 2 Minimum Wage) |
$11.50 (Schedule 2 Minimum Wage) |
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| $13.00 (Minimum Compensation) |
$14.00 (Minimum Compensation) |
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| Tacoma | January 1, 2018 | $11.15 | $12.00 | Not applicable | No change | Prohibited | |
For more information visit: https://www.littler.com/publication-press/publication/minimum-wage-2018-rates-only-update
Until Next Time, Be Audit Secure!
Lisa Smith
