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Hey Compliance Warriors!

As the new year approaches, we are all thinking about the new 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)

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)
$11.00
(Schedule 2 Minimum Wage)
$11.50
(Schedule 2 Minimum Wage)
$13.00
(Minimum Compensation)
$14.00
(Minimum Compensation)
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

LKS

About LISA SMITH

Lisa Smith is CEO of Andere Development, LLC and Chief Content Developer at BeAuditSecure.com. Follow her on Twitter, connect with her on LinkedIn, listen to her Small Business Spoonfuls Podcast, and find more from her in Audit-Secure Assistant at BeAuditSecure.com.

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