Many state minimum wage rates will increase on January 1
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Thursday, December 6, 2018

Many state minimum wage rates will increase on January 1

By Payroll and Entitlements Editorial Staff

A significant number of states will see increases in the state minimum hourly wage on January 1.

The highest statewide minimum wage rate is in the District of Columbia, at $13.25 per hour, followed by Massachusetts and Washington each at $12 per hour effective January 1, 2019.

Georgia and Wyoming continue to have the lowest minimum wages, each still at only $5.15 per hour. However, most employers and employees would be subject to the federal minimum wage rate of $7.25 per hour.

Alabama, Louisiana, Mississippi, South Carolina and Tennessee do not have statutory provisions covering minimum wages. In those states, the federal minimum wage, $7.25, would apply.

Many cities and counties may also have living and/or minimum wage rates that are higher than the federal or state minimum wage.

State minimum wage rates are as follows. Except as noted, new wage rates take effect on January 1, 2019.

2019 State Minimum Wage Rates at a Glance

Alabama.—No statutory minimum wage. For employers and employees subject to the federal Fair Labor Standards Act, the federal minimum wage of $7.25 per hour applies. Local minimum wage requirements are banned per Act 2016-18 (H. 174).

Alaska.—$9.89 per hour, up 5 cents from $9.84 per hour, based on a 0.5% increase in the cost of living. Wage rates are adjusted annually based on inflation. School bus drivers are to be paid two times the minimum wage.

Arizona.—$11 per hour.

In addition, employees are entitled to paid sick leave, at the rate of one hour of paid sick time for every 30 hours worked, but with limits based on the size of the employer.

Arkansas.—$9.25, up from $8.50 per hour. The minimum wage will reach $11.00 by 2021.

California.—$12.00 per hour, for businesses with 26 or more employees; $11.00 for smaller employers.

On April 4, 2016, California Governor Edmund G. Brown Jr. signed legislation to gradually raise the state minimum wage with annual increases to reach $15 by 2022 for businesses with 26 or more employees and by 2023 for smaller employers. The plan also allows for the Governor to “pause” wage hikes, to be determined by September 1 of each year for the next year, if negative economic or budgetary conditions emerge (S.B. 3, L. 2016).

Colorado.—$11.10 per hour.

Connecticut.—$10.10 per hour.

Delaware.—$8.75 per hour. The minimum wage is scheduled to increase to $9.25 on October 1, 2019.

District of Columbia.—$13.25 per hour. The minimum wage is scheduled to increase to $14.00 on July 1, 2019.

Under the “Fair Shot Minimum Wage Amendment Act of 2016”, the minimum wage will reach $15 per hour by 2020. Wages for tipped workers will also increase, eventually reaching $5 per hour by 2020. Starting in 2021 both wage rates will be adjusted based on inflation. DC Law 21-144 (Act 21-429; B21-712), effective from August 19, 2016 (63 DC Register 11135).

Florida.—$8.46 per hour, up 21 cents, based on a 2.59% increase in the cost of living. Wage rates are adjusted annually based on inflation.

Georgia.—$5.15 per hour. This rate remains unchanged. For employers and employees subject to the federal Fair Labor Standards Act, the federal minimum wage of $7.25 per hour applies.

Hawaii.—$10.10 per hour.

Idaho.—$7.25 per hour. Unchanged. The state minimum wage is tied to the federal rate. Local government minimum wage requirements are banned, per Ch. 145 (H. 463), L. 2016.

Illinois.—$8.25 per hour. Unchanged. However, the minimum wage will also apply to domestic workers, since the exemption is removed by Public Act 99-756 (H.B. 1288), L. 2015, enacted August 12, 2016, and effective January 1.

Indiana.—$7.25 per hour. Unchanged. State minimum wage is tied to the federal rate.

Iowa.—$7.25 per hour. Unchanged.

Kansas.—$7.25 per hour. Unchanged.

Kentucky.—$7.25 per hour. Unchanged. State minimum wage is tied to the federal rate.

Louisiana.—No statutory minimum wage. For employers and employees subject to the federal Fair Labor Standards Act, the federal minimum wage of $7.25 per hour applies.

Maine.—$11 per hour.

Maryland.—$10.10 per hour.

Massachusetts.—$12 per hour. This is a $1 scheduled increase over the current $11 per hour, per H.B. 4640, L. 2018.

Michigan.—$10.00 , up from $9.25 per hour.

Minnesota.—$9.86 per hour (up from $9.65) for employees of large employers with an annual gross volume of sales of not less than $500,000. Small employers must pay employees a minimum wage of at least $8.04 per hour (up from $7.87).

Mississippi.—No statutory minimum wage. For employers and employees subject to the federal Fair Labor Standards Act, the federal minimum wage of $7.25 per hour applies.

Missouri.—$8.60, up from $7.85 per hour. The minimum wage will increase by 85 cents per hour each year until 2023, when the state minimum wage will reach $12.00 per hour.

Montana.—$8.50 per hour, up 20 cents, based on a 2.68% change in the cost of living and rounded to the nearest 5 cents. Wage rates are adjusted annually based on inflation.

Nebraska.—$9 per hour, effective as of January 1, 2016, per voter-approved ballot Measure 425, 2014 General Election. Applies to employers with 4 or more employees.

Nevada.—$8.25 per hour if employers do not offer a qualified health insurance plan to employees; $7.25 per hour if insurance is offered. Unchanged.

Although Nevada’s minimum wage rate is to be adjusted annually based on inflation, with any changes to occur on July 1, the Office of the Labor Commissioner announced there would be no increase in 2018. Rates are posted April 1.

New Hampshire.—$7.25 per hour. Unchanged. State minimum wage is tied to federal rate.

New Jersey.—$8.85 per hour, up 25 cents from $8.60 per hour, based on a 2.88% increase in the cost of living. Wage rates are adjusted annually based on inflation.

New Mexico.—$7.50 per hour. Unchanged.

New York.—Tiered/Rates vary by region: $15 per hour, New York City employers with 11 or more employees, and $13.50 per hour, New York City employers with 10 or fewer employees; $12 per hour, Nassau, Suffolk and Westchester counties; $11.10 per hour, remainder of the state. Rate increases are included as part of the 2016 Budget Bill, Part K (S.B. 6406-C/A.B. 9006-C).

The piece rate for Agricultural workers must be equivalent to the basic minimum wage, unless a youth rate certificate is issued (wage rate then must be equivalent to the youth rate). Existing wage orders are to be adjusted to reflect the wage increases. Paid family leave is also part of the Budget Bill.

The minimum wage for workers in fast food establishments will be $15 per hour on December 31, 2018 in New York City and $12.75 per hour for fast food workers in the rest of the state.

The minimum wage at all airports (LaGuardia, JFK and Newark Liberty International) will be $15 on January 1, 2019 and will increase to $15.60 eff. September 1, 2019.

North Carolina.—$7.25 per hour. Unchanged. State minimum wage is tied to the federal rate.

Local minimum wage ordinances are banned, with exception to: (1) a local government regulating, compensating, or controlling its own employees; (2) economic development incentives; (3) a requirement of federal community development block grants; or (4) community development programs (Session Law 2016-3 (H. 2), enacted March 23, 2016).

North Dakota.—$7.25 per hour. Unchanged. State minimum wage is tied to the federal rate.

Ohio.—$8.55 per hour, up 25 cents from $8.30 per hour, based on a 2.9% increase in the cost of living. Wage rates are adjusted annually based on inflation. The minimum wage rate applies to employees of businesses with annual gross receipts of $314,000 per year (changed from $305,000 in 2018). For employees at smaller companies and for 14- and 15-year-olds, the state minimum wage is $7.25 per hour, which is tied to the federal rate.

Oklahoma.—$7.25 per hour. Unchanged.

Oregon.—The state minimum wage is tiered, with the highest rate in the Metro Portland area at $12.00 per hour ($12.50 eff. July 1, 2019), the lowest in rural (non-Urban) areas at $10.50 per hour ($11 eff. July 1, 2019), and a minimum wage of $10.75 per hour ($11.25 eff. July 1, 2019) in the rest of the state. Scheduled increases per S.B. 1532, L. 2016.

Pennsylvania.—$7.25 per hour. Unchanged.

The minimum wage for state employees under the governor’s jurisdiction will be $12.50 per hour. There will be annual increases based on inflation.

Puerto Rico.—$7.25 per hour. This rate applies to workers covered by the federal Fair Labor Standards Act. For workers not covered by federal law, employers must pay either not less than 70% of the federal minimum hourly wage rate ($5.08) or the applicable mandatory decree rate, whichever is higher. For workers 25 years of age and younger, a training wage of $4.25 per hour may be paid to new workers for the first 90 days of employment.

Rhode Island.—$10.50 per hour per H.B. 5175, L. 2017.

South Carolina.—No statutory minimum wage. For employers and employees subject to the federal Fair Labor Standards Act, the federal minimum wage of $7.25 per hour applies.

South Dakota.—$9.10 per hour, up 25 cents from $8.85 per hour, based on a 2.7% increase in the cost of living. Wage rates are adjusted annually based on inflation.

Tennessee.—No statutory minimum wage. For employers and employees subject to the federal Fair Labor Standards Act, the federal minimum wage of $7.25 per hour applies.

Texas.—$7.25 per hour. Unchanged. State minimum wage is tied to the federal rate.

Utah.—$7.25 per hour. Unchanged. State minimum wage is tied to the federal rate.

Vermont.—$10.78 per hour. This is a 28-cent scheduled increase over the current $10.50 per hour.

Virginia.—$7.25 per hour. Unchanged. State minimum wage is tied to the federal rate.

Washington.—$12 per hour, for employees who have reached the age of 18, per voter-approved Initiative 1433, effective January 1, 2017.

Under Initiative 1433, the minimum wage will increase gradually to $13.50 by 2020. The Department of Labor and Industries will resume calculating the minimum wage for calendar years 2021 and beyond, based on increases in the cost of living.

Workers under 16 years old can be paid 85 percent of the adult minimum wage, or $10.20 per hour, in 2019.

The initiative also guarantees paid sick time to workers, allowing workers to accrue one hour of paid sick leave for every 40 hours worked.

West Virginia.—$8.75 per hour. Unchanged.

Wisconsin.—$7.25 per hour. Unchanged.

Wyoming.—$5.15 per hour. Unchanged. Employers subject to federal law must pay employees $7.25 per hour.

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