In 2018, the federal minimum wage will remain at $7.25 per hour for non-tipped employees and $2.13 per hour for tipped employees. The following table summarizes the statewide minimum wage increases that have been announced for 2018, along with the related changes to the maximum tip credit permitted and minimum cash wage allowed for tipped employees:
| Minimum Wage | Maximum Tip Credit | Minimum Cash Wage | |
| Alaska | $9.80 (current) $9.84 (effective January 1, 2018) |
Tip credit not allowed | Tip credit not allowed |
| Arizona | $10.00 (current) $10.50 (effective January 1, 2018) Not applicable to small businesses that have less than $500,000 in annual gross revenues and that are exempt from paying minimum wage under federal law |
$3.00 | $7.00 (current) $7.50 (effective January 1, 2018) |
| California | Small Employers (those with 25 or
fewer employees): $10.00 (current) $10.50 (effective January 1, 2018) Large Employers (those with 26 or more employees): $10.50 (current) $11.00 (effective January 1, 2018) |
Tip credit not allowed | Tip credit not allowed |
| Colorado | $9.30 (current) $10.20 (effective January 1, 2018) |
$3.02 | $6.28 (current) $7.18 (effective January 1, 2018) |
| District of Columbia | $12.50 (current) $13.25 (effective July 1, 2018) |
$9.17 (current) $9.36 (effective July 1, 2018) |
$3.33 (current) $3.89 (effective July 1, 2018) |
| Florida | $8.10 (current) $8.25 (effective January 1, 2018) |
$3.02 | $5.08 (current) $5.23 (effective January 1, 2018) |
| Hawaii | $9.25 (current) $10.10 (effective January 1, 2018) |
$0.75, provided wages plus tips are at least $7.00 more than the applicable minimum wage | $8.50 (current) $9.35 (effective January 1, 2018) |
| Maine | $9.00 (current) $10.00 (effective January 1, 2018) |
$4.00 (current) $5.00 (effective January 1, 2018) |
$5.00 |
| Maryland | $9.25 (current) $10.10 (effective July 1, 2018) |
$5.62 (current) $6.47 (effective July 1, 2018) |
$3.63 |
| Michigan | $8.90 (current) $9.25 (effective January 1, 2018) |
$5.52 (current) $5.73 (effective January 1, 2018) |
$3.38 (current) $3.52 (effective January 1, 2018) |
| Minnesota | Large Employers (annual gross revenue
of $500,000 or more): $9.50 (current) $9.65 (effective January 1, 2018) Small Employers (annual gross revenue of less than $500,00): $7.75 (current) $7.87 (effective January 1, 2018) |
Tip credit not allowed | Tip credit not allowed |
| Missouri | $7.70 (current) $7.85 (effective January 1, 2018) |
$3.85 (current) $3.92 (effective January 1, 2018) |
$3.85 (current) $3.93 (effective January 1, 2018) |
| Montana | $8.15 (current) $8.30 (effective January 1, 2018) |
Tip credit not allowed | Tip credit not allowed |
| New Jersey | $8.44 (current) $8.60 (effective January 1, 2018) |
$6.31 (current) $6.47 (effective January 1, 2018) |
$2.13 |
| New York | $10.40 (effective
December 31, 2017) $11.10 (effective December 31, 2018) Fast Food Workers (not governed by local ordinances): $11.75 (effective December 31, 2017) $12.75 (effective December 31, 2018) |
$1.75 for all service employees (effective December 31, 2017) Tip credit varies based on position within the hospitality industry | $8.65 for all service workers (effective December 31, 2017) Currently varies based on position within the hospitality industry |
| Ohio | $8.15 (current) $8.30 (effective January 1, 2018) |
$4.07 (current) $4.15 (effective January 1, 2018) |
$4.08 (current) $4.15 (effective January 1, 2018) |
| Oregon | $10.25 (current) $10.75 (effective July 1, 2018) For employers located within the urban growth boundary of a metropolitan service district, the minimum wage rates are as follows: $11.25 (current) $12.00 (effective July 1, 2018) For employers in nonurban counties, as defined by the law, the minimum wage rates are as follows: $10.00 (current) $10.50 (effective July 1, 2018) |
Tip credit not allowed | Tip credit not allowed |
| Rhode Island | $9.60 (current) $10.10 (effective January 1, 2018) |
$5.71 (current) $6.21 (effective January 1, 2018) |
$3.89 |
| South Dakota | $8.65 (current) $8.85 (effective January 1, 2018) |
$4.32 (current) $4.42 (effective January 1, 2018) |
$4.33 (current) $4.43 (effective January 1, 2018) |
| Vermont | $10.00 (current) $10.50 (effective January 1, 2018) |
$5.00 (current) $5.25 (effective January 1, 2018) Applies only to employees of a hotel, motel, tourist place, or restaurant who earn at least $120 per month in tips for direct and personal customer service |
$5.00 (current) $5.25 (effective January 1, 2018) Applies only to employees of a hotel, motel, tourist place, or restaurant who earn at least $120 per month in tips for direct and personal customer service |
| Washington | $11.00 (current) $11.50 (effective January 1, 2018) |
Tip credit not allowed | Tip credit not allowed |
Employers may also be affected by local minimum wage ordinances with heightened requirements and exceptions to statewide minimum wage obligations. Further, employers covered by the Fair Labor Standards Act in states with maximum tip credits that exceed the federal tip credit of $5.12 per hour may want to carefully consider their obligations under federal law. Note also that the DOL recently published new proposed regulations concerning tips so there could be changes to the federal regulations in 2018.
More information on minimum wage requirements is available through Ogletree Deakins' O-D Comply: State Wage & Hour Issues, a subscription-based product compiling state wage and hour requirements with a concise guide to compliance in all 50 states and the District of Columbia. O-D Comply: State Wage & Hour Issues is updated and provided to O-D Comply subscribers as the law changes.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
