22 States to Increase Minimum Wage

As many as 22 states and the District of Columbia are expected to experience minimum wage increases in 2019, compared to 18 in 2018. With minimum pay rates varying so widely across the United States and many changes coming over the next several years it is now that much more important to have a sound workforce management strategy in each location where contingent labor is engaged. In addition to wage requirements, overtime regulations and benefits requirements also vary widely from state to state throughout the US.

Many organizations inadvertently leave money on the table in states were regulations are more relaxed and/or expose themselves to risk in states were regulations are more stringent.  Whether an employer leverages remote workers, temporary labor, or makes adjustments to its geographic strategy, there are a number of ways to adjust cost management strategies in workforce planning to account for these new wage levels.

Anticipated Changes in 2019

Alaska

Current minimum wage: $9.84
2019 minimum wage: $9.89
Effective date: Jan. 1, 2019
Reason: Cost-of-living adjustment

Arizona

Current minimum wage: $10.50
2019 minimum wage: $11
Effective date: Jan. 1, 2019
Reason: Third step toward approved $12 minimum wage by 2020

Arkansas

Current minimum wage: $8.50
2019 minimum wage: $9.25
Effective date: Jan. 1, 2019
Reason: First step toward approved $11 minimum wage by 2021

California

Current minimum wage: $11 for large employers; $10.50 for small employers
2019 minimum wage: $12 for large employers; $11 for small employers
Effective date: Jan. 1, 2019
Reason: Third step toward approved $15 minimum wage by 2022-23

Colorado

Current minimum wage: $10.20
2019 minimum wage: $11.10
Effective date: Jan. 1, 2019
Reason: Third step toward approved $12 minimum wage by 2020

Delaware

Current minimum wage: $8.25
2019 minimum wage: $8.75 and then another to $9.25
Effective date: First increase in January; second increase in October
Reason: First and last step toward approved $9.25 minimum wage by 2019

District of Columbia

Current minimum wage: $13.25
2019 minimum wage: $14
Effective date: July 1, 2019
Reason: Fourth step toward approved $15 minimum wage by 2020

Florida

Current minimum wage: $8.25
2019 minimum wage: $8.46
Effective date: Jan. 1, 2019
Reason: Cost-of-living adjustment

Maine

Current minimum wage: $10
2019 minimum wage: $11
Effective date: Jan. 1, 2019
Reason: Third step toward approved $12 minimum wage by 2020

Massachusetts

Current minimum wage: $11
2019 minimum wage: $12
Effective date: Jan. 1, 2019
Reason: First step toward approved $15 minimum wage by 2023

Michigan

Current minimum wage: $9.25
2019 minimum wage: $9.48
Effective date: 90 days after the Michigan legislature adjourns, approximately late March or early April
Reason: First step toward approved $12 minimum wage by 2030

Minnesota

Current minimum wage: $9.65 for large employers; $7.87 for small employers
2019 minimum wage: $9.86 for large employers; $8.04 for small employers
Effective date: Jan. 1, 2019
Reason: Cost-of-living adjustment

Missouri

Current minimum wage: $7.85
2019 minimum wage: $8.60
Effective date: Jan. 1, 2019
Reason: First step toward approved $12 minimum wage by 2023

Montana

Current minimum wage: $8.30
2019 minimum wage: $8.50
Effective date: Jan. 1, 2019
Reason: Cost-of-living adjustment

Nevada

Current minimum wage: $8.25 with no benefits; $7.25 with benefits
2019 minimum wage: The Nevada Labor Commissioner will determine in April whether to increase the state’s minimum wage in 2019 based on a formula in the state constitution.
Effective date: July 1, 2019
Reason: Cost-of-living adjustment

New Jersey

Current minimum wage: $8.60
2019 minimum wage: $8.85
Effective date: Jan. 1, 2019
Reason: Cost-of-living adjustment

New York

Current minimum wage: $13 for large employers in New York City; $12 for small employers in New York City; $11 in Long Island and Westchester County; and $10.40 everywhere else
2019 minimum wage: $15 for large employers in New York City; $13.50 for small employers in New York City; $12 in Long Island and Westchester County; and $11.10 everywhere else
Effective date: Dec. 31, 2018
Reason: Fourth step toward approved $15 minimum wage by 2018-21

Ohio

Current minimum wage: $8.30
2019 minimum wage: $8.55
Effective date: Jan. 1, 2019
Reason: Cost-of-living adjustment

Oregon

Current minimum wage: $12 in Portland; $10.75 standard; and $10.50 in rural areas
2019 minimum wage: $12.50 in Portland; $11.25 standard; and $11 in rural areas
Effective date: July 1, 2019
Reason: Fourth step toward approved increases in minimum wages ($14.75 in Portland, $13.50 standard and $12.50 in rural areas) by 2022

Rhode Island

Current minimum wage: $10.10
2019 minimum wage: $10.50
Effective date: Jan. 1, 2019
Reason: Last step toward approved $10.50 minimum wage by 2019

South Dakota

Current minimum wage: $8.85
2019 minimum wage: $9.10
Effective date: Jan. 1, 2019
Reason: Cost-of-living adjustment

Vermont

Current minimum wage: $10.50
2019 minimum wage: $10.78
Effective date: Jan. 1, 2019
Reason: Cost-of-living adjustment

Washington

Current minimum wage: $11.50
2019 minimum wage: $12
Effective date: Jan. 1, 2019
Reason: Third step toward approved $13.50 minimum wage by 2020

Minimum wage is only one of a dozen or more areas of compliance employers will be examining over the course of 2019. However, it is the one that usually gets the most attention. As more municipalities pass Minimum Wage legislation that is separate from their state regulations compliance with the minimum wage rules where organization have workers becomes even more difficult to maintain than ever before.