United States: 18 States Set To Ring In The New Year With Minimum Wage Increases

Executive Summary: With 2018 winding down, employers should be prepared for the minimum wage increases that are expected in the New Year. Even though the federal minimum wage has stagnated at $7.25 per hour since 2009, state legislatures have been active in increasing their respective minimum wage rates. In 2019, 21 states will increase their state’s minimum wage rate, with 18 of those increases taking effect on New Year’s Day or New Year’s Eve.

In light of these anticipated changes, employers should ensure their pay practices comply with the wage increases listed below. Employers should also be prepared to update their state minimum wage posters, as many states require employers to post up-to-date notices of the state minimum wage. Finally, in addition to the state-wide increases, cities and/or localities in your jurisdiction may also have increased minimum wage(s).

Don’t put off these tasks until the New Year, as these new requirements could end up catching you by surprise. Start 2019 off on the right foot and be prepared for the changes the new year will bring.

Alaska

Alaska’s minimum wage will increase from $9.84 to $9.89 on January 1, 2019. Alaska law requires the state to adjust its minimum wage annually for inflation using the Consumer Price Index (CPI). Notably, Alaska law prohibits tip credits, so this minimum wage increase applies to tipped employees as well. Under this statute, the Last Frontier’s minimum wage must be at least $1.00 over the federal minimum wage.

Arizona

Under Proposition 206, the Fair Wages and Healthy Families Act, Arizona’s minimum wage will increase from $10.50 to $11.00 on January 1, 2019. Arizona’s tipped minimum wage will also increase from $7.50 to $8.00. Under this act, Arizona’s minimum wage will reach $12.00 by 2020, and beginning in 2021, Arizona’s minimum wage will increase each year by the cost of living.

Arkansas

Just last month Arkansas voters passed Issue 5, increasing the state minimum wage over the next three years. Accordingly, Arkansas’s current minimum wage of $8.50 will increase to $9.25 on January 1, 2019. Pursuant to this vote, Arkansas’s minimum wage will reach $11.00 by 2021. Notably, this minimum wage increase does not affect Arkansas’s tip credit of $3.62.

California

On January 1, 2019, the minimum wage for California employers with 25 or fewer employees will increase from $10.50 to $11.00. The minimum wage for California employers with 26 or more employees will also increase from $11.00 to $12.00. By 2023 the state minimum wage will reach $15.00. Notably, California law prohibits tip credits, so this minimum wage increase applies to tipped employees as well.

Colorado

Colorado’s minimum wage will increase from $10.20 to $11.10 on January 1, 2019. The tipped employee minimum wage will also increase from $7.18 to $8.08. Colorado’s minimum wage will reach $12.00 by 2020.

Delaware

On October 1, 2019, Delaware’s minimum wage will increase from $8.75 to $9.25. By October 1, 2021, Delaware’s minimum wage will reach $10.25. This minimum wage increase does not affect Delaware’s tip credit of $2.23.

District of Columbia

On July 1, 2019, D.C.’s minimum wage will increase from $13.25 to $14.00. The District’s tipped employee minimum wage will also increase from $3.89 to $4.45. By 2020, the Capitol’s minimum wage rate will reach $15.00.

Florida

Effective January 1, 2019, Florida's minimum wage rate will increase by 21 cents, from $8.25 to $8.46. Florida’s tipped employee minimum wage will also increase by 21 cents, from $5.23 to $5.44. This increase is based on the percentage increase in the Consumer Price Index ("CPI") for the South region. Significantly, even if the CPI decreases in a given year, the Sunshine State’s minimum wage will never decrease.

Maine

Maine’s minimum wage rate will increase from $10.00 to $11.00 effective January 1, 2019. The state’s tipped minimum wage will also increase from $5.00 to $5.50 in the New Year. By 2020, Maine’s minimum wage will reach $12.

Massachusetts

Earlier this year, Massachusetts’s Governor Charlie Baker signed a bill increasing the state’s minimum wage from $11.00 to $15.00 by 2023. In accordance with the bill, on January 1, 2019, the Bay State’s minimum wage will increase to $12.00 and the tipped minimum wage will increase to $4.35.

Minnesota

Minnesota’s minimum wage rates will be adjusted for inflation on January 1, 2019. For “large employers” (employers with annual gross revenue of $500,000 or more), the minimum wage will increase from $9.65 to $9.86. For “small employers” (employers with annual gross revenue of less than $500,000) the minimum wage will increase from $7.87 to $8.04. Notably, Minnesota law prohibits tip credits, so this minimum wage increase applies to tipped employees as well.

Missouri

Just last month, Missouri voters passed Proposition B: The $12 Minimum Wage Initiative. In accordance with Proposition B, Missouri’s minimum wage will increase from $7.85 to $8.60 on January 1, 2019. Similarly, Missouri’s tipped minimum wage will increase from $3.93 to $4.30. Missouri’s minimum wage will increase by 85 cents per a year thereafter until it reaches $12.00 in 2023. Employers engaged in retail or service businesses whose annual gross income is less than $500,000 are not required to pay the state minimum wage rate.

Montana

Montana’s minimum wage will rise to $8.50 on January 1, 2019. Notably, Montana law prohibits tip credits, so this minimum wage increase applies to tipped employees as well.

New Jersey

On January 1, 2019, New Jersey’s minimum wage will increase from $8.60 to $8.85. The Garden State’s tipped minimum wage of $2.13 remains unchanged.

New York

As part of New York’s Minimum Wage Act, requiring all New York employers to eventually pay at least $15.00 per hour, the state’s minimum wage will increase on New Year’s Eve. On December 31, 2018, the minimum wage for New York City “big employers” (11 or more employees) will increase from $13.00 to $15.00, and the tipped minimum wage will increase from $8.65 to $10.00. The minimum wage for New York City “small employers” (10 or fewer employees) will increase from $12.00 to $13.50, and the tipped minimum wage will increase from $8.00 to $9.00. The minimum wage for employers in Long Island and Westchester will increase from $11.00 to $12.00, and the tipped employee minimum wage will increase from $7.50 to $8.00. The minimum wage for employers in the remainder of the state will increase from $10.40 to $11.10, and the tipped employee minimum wage rate will remain $7.50.

Employers should be aware that New York’s state minimum wage laws permit regulations known as “Wage Orders,” which govern the minimum wage for specific industries, including the hospitality, building service, and farm industries.

Ohio

In accordance with Ohio’s annual indexed wage increases, Ohio’s minimum wage will increase from $8.30 to $8.55 on January 1, 2019. The state’s minimum wage for tipped employees will also increase from $4.15 to $4.30. Employers who gross less than $314,000 are not subject to the Buckeye State’s minimum wage requirements, but still must comply with the federal minimum wage rate.

Oregon

On July 1, 2019, Oregon’s standard minimum wage rate will increase from $10.75 to $11.25. The minimum wage for employers in the Portland metro area will increase from $12.00 to $12.50. The minimum wage for employers in Oregon’s “Nonurban Counties” (Baker, Klamath, Coos, Lake, Crook, Malheur, Curry, Morrow, Douglas, Sherman, Gilliam, Umatilla, Grant, Union, Harney, Wallowa, Jefferson, and Wheeler) will increase from $10.50 to $11.00. Notably, Oregon law prohibits tip credits, so this minimum wage increase applies to tipped employees as well.

Rhode Island

On January 1, 2019, Rhode Island’s minimum wage will increase from $10.10 to $10.50. The minimum wage for tipped employees remains $3.89.

South Dakota

South Dakota’s minimum wage will increase from $8.85 to $9.10 on January 1, 2019. The minimum wage for tipped employees will also increase from $4.43 to $4.55.

Vermont

Vermont’s minimum wage increases annually every January 1 in accordance with an index formula. Accordingly, on January 1, 2019, Vermont’s minimum wage will increase from $10.50 to $10.78. The minimum wage for tipped employees will increase from $5.25 to $5.39.

Washington

In accordance with a ballot measure approved by voters in 2016, Washington’s minimum wage will increase from $11.50 to $12.00 on January 1, 2019. By 2020, Washington’s minimum wage will be $13.50. The Evergreen State does not provide a separate wage for tipped employees.

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.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions