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Employers Must Account for Numerous State and Local Minimum Wage Hikes Effective January 1, 2019
Wednesday, December 12, 2018

In recent years, a growing number of states and localities have enacted unique minimum wage laws and ordinances entitling employees to be paid more – in some cases, substantially more – than the federal minimum wage, which has stood at $7.25 for nearly a decade.

As these minimum wages become more particularized, multi-jurisdictional employers face an increasing challenge to maintain compliance.

Below is an overview of notable increases slated to take effect on January 1, 2019, unless otherwise noted.

Please note that, at this late date, the 2019 minimum wage remains the subject of debate in several jurisdictions, including Michigan, where the modification of a bill in December 2018 has stirred controversy as it awaits executive signature.

Minimum Wage Hikes Applicable in the States and Territories

 

 

Current

New

State

Categories
(if any)

Minimum Wage

Tipped Minimum Wage

Minimum Wage

Tipped Minimum Wage

Alaska

 

$9.84

 

$9.89

 

Arizona

 

$10.50

$7.50

$11.00

$8.00

Arkansas

 

$8.50

 

$9.25

 

California

26 or more employees

$11.00

 

$12.00

 

 

25 or fewer employees

$10.50

 

$11.00

 

Colorado

 

$10.20

$7.18

$11.10

$8.08

Delaware

 

$8.25

 

$8.75

 

District of Columbia

 

$13.25

 

$14.00

 

Florida

 

$8.25

$5.23

$8.46

$5.44

Maine

 

$10.00

$5.00

$11.00

$5.50

Massachusetts

 

$11.00

$3.75

$12.00

$4.35

Minnesota

Large employer (annual gross revenue of $500,000 or more)

$9.65

 

$9.86

 

 

Large employer 90-day training wage

$7.87

 

$8.04

 

 

Large employer youth wage (under 18 years of age)

$7.87

 

$8.04

 

 

Small employer (annual gross revenue of less than $500,000)

$7.87

 

$8.04

 

Missouri

 

$7.85

$3.93

$8.60

$4.30

Montana

 

$8.30

 

$8.50

 

New Jersey

 

$8.60

 

$8.85

 

New York (effective December 31, 2018)*

 

$10.40

$7.85 (when tips are $2.55 or more)

 

$8.85 (when tips are at least $1.55, but less than $2.55)

11.10

$8.40 (when tips are $2.70 or more)

 

$9.45 (when tips are at least $1.65 but less than $2.70)

Ohio**

Employers with gross revenues equal to or exceeding $314,000 (previously $305,000)

$8.30

$4.15

$8.55

$4.30

 

Employers with gross revenues less than $314,000 (previously $305,000)

 

$4.15

 

$4.30

Rhode Island

 

$10.10

 

$10.50

 

South Dakota

 

$8.85

$4.43

$9.10

$4.55

Vermont

 

$10.50

$5.25

$10.78

$5.39

Washington

 

$11.50

$11.50

$12.00

$12.00

* The minimum wages identified herein with respect to New York State and its localities are the general minimum wages. Different rules apply to certain categories of employees within certain regions and industries, including hospitality and building services.   Employers in New York State should take extra care to consult the state or local rules that may apply within their industries.

** Employees under the age of 16 may be paid no less than the federal minimum wage.

Localized Minimum Wage Hikes

 

 

Current

New

Locality

Categories
(if any)

Minimum Wage

Tipped Minimum Wage

Minimum Wage

Tipped Minimum Wage

Arizona

 

 

 

 

 

Flagstaff, AZ

 

$11.00

 

$12.00

 

California

 

 

 

 

 

Belmont, CA

 

$12.50

 

$13.50

 

Cupertino, CA

 

$13.50

 

$15.00

 

El Cerrito, CA

 

$13.60

 

$15.00

 

Los Altos, CA

 

$13.50

 

$15.00

 

Mountain View, CA

 

$15.00

 

$15.65

 

Oakland, CA

 

$13.23

 

$13.80

 

Palo Alto, CA

 

$13.50

 

$15.00

 

Redwood City, CA

 

N/A

 

$13.50

 

Richmond, CA+

Without specified medical benefits

$13.41

 

$15.00

 

 

With specified medical benefits

$11.91

 

$13.50

 

San Diego, CA

 

$11.50

 

$12.00

 

San Jose, CA

 

$13.50

 

$15.00

 

San Mateo, CA

501(c)(3) non-profit

$12.00

 

$13.50

 

 

Other businesses

$13.50

 

$15.00

 

Santa Clara, CA

 

$13.00

 

$15.00

 

Sunnyvale, CA

 

$15.00

 

$15.65

 

New Mexico

 

 

 

 

 

Albuquerque, NM++

Specified benefits not provided

$8.95

$5.35

$9.20

$5.50

 

Specified benefits provided

$7.95

$5.35

$8.20

$5.50

Bernalillo County, NM

 

$8.85

 

$9.05

 

Las Cruces, NM

 

$9.20

$3.68

$10.10

$4.04

New York

 

(effective December 31, 2018)

 

 

 

 

 

NYC

more than 10 employees

$13.00

$9.80 (when tips are $3.20 or more)

 

$11.05 (when tips are at least $1.95, but less than $3.20)

$15.00

$11.35 (when tips are $3.65 or more)

 

$12.75 (when tips are at least $2.25, but less than $3.65)

NYC

10 or fewer employees

$12.00

$9.05 (when tips are $2.95 or more)

 

$10.20 (when tips are at least $1.80, but less than $2.95)

$13.50

$10.30 (when tips are $3.30 or more)

 

$11.45 (when tips are at least $2.05, but less than $3.30)

Nassau, Suffolk, & Westchester Counties, NY

 

$11.00

$8.30 (when tips are more than $2.70)

 

$9.35 (when tips are at least $1.65, but less than $2.70)

$12.00

$9.05 (when tips are more than $2.95)

 

$10.20 (when tips are at least $1.80, but less than $2.95)

Washington

 

 

 

 

 

Seattle, WA+++

Small employer (500 or fewer employees)

$14.00

 

(or $11.50, with difference made up in tips or benefits)

 

$15.00

 

(or $12.00, with difference made up in tips or benefits)

 

 

Large employer (501 or more employees) – with medical benefits

$15.45

 

(or $15.00, with difference made up in benefits)

 

$16.00

 

SeaTac, WA

Hospitality and transportation employees

$15.64

 

$16.09

 

Tacoma, WA

 

$12.00

 

$12.35

 

+ An employer may pay employees $1.50 less than the minimum hourly wage provided that the employer pays at least $1.50 per hour, per employee, towards an employee medical benefits plan that allows employees to receive employer-compensated care from a licensed physician.

++ Employers may offer a lower minimum wage if they provide the employee with healthcare and/or childcare benefits equal to or greater than an annualized cost of $2,500.00.

+++ In 2019, the two-tier system in which employees that offer certain benefits may offer a lower minimum wage will no longer apply to large employers.

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