Minimum Wages in January 2018

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Minimum Wage Increases for 18 States 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.

Changes in 2018

States with new minimum wages, according to the Economic Policy Institute, a think tank that tracks minimum wage legislation:

  • Alaska: $9.84, $.04 increase
  • Arizona: $10.50, $.50 increase
  • California: $11.00, $.50 increase
  • Colorado: $10.20, $.90 increase
  • Florida: $8.25, $.15 increase
  • Hawaii: $10.10, $.85 increase
  • Maine: $10.00, $1.00 increase
  • Michigan: $9.25, $.35 increase
  • Minnesota: $9.65, $.15 increase
  • Missouri: $7.85, $.15 increase
  • Montana: $8.30, $.15 increase
  • New Jersey: $8.60, $.16 increase
  • New York: $10.40, $.70 increase
  • Ohio: $8.30, $.15 increase
  • Rhode Island: $10.10, $.50 increase
  • South Dakota: $8.85, $.20 increase
  • Vermont: $10.50, $.50 increase
  • Washington: $11.50, $.50 increase

Recently, Missouri passed a preemption law to retroactively roll back a minimum wage hike enacted by city leaders in St. Louis. Under the new legislation, no locality could have a wage floor higher than the one mandated by the state. The new law effectively reversed St. Louis’ minimum wage, taking it from $10 back to the current state level of $7.70. While some believe this may become a trend nationwide there is no historical or current evidence that the minimum wage will do anything but rise going forward. cases such as St. Louis are the exception to the consistent increase of the minimum wage over time.

Minimum Wage Rates by State and Municipality

Jurisdiction Minimum Wage Rate Municipality Minimum Wage Rate
Alaska $9.84 Albuquerque, New Mexico $8.95
Arizona $10.50 Bernalillo County, New Mexico $8.85
California 11.00 (26 or more employees); Cupertino, California $13.50
$10.50 for small employers (25 or fewer employees) El Cerrito, California $13.60
Colorado $10.20 Los Altos, California $13.50
Florida $8.25
Hawaii $10.10 Minneapolis, Minnesota $10.00 for large employers (101 or more employees
Maine $10.00 Oakland, California $13.23
Michigan $9.25 Nassau, Suffolk and Westchester Counties, New York $11.00 for non-fast food employees
Minnesota $9.65 New York City $13.50 for fast-food employees;
Missouri $7.85 $13.00 for large employers (11 or more employees);
Montana $8.30 $12.00 for small employers (10 or fewer employees)
New Jersey $8.60 Richmond, California $13.41
New York $11.75 for fast-food employees San Jose, California $13.50
Ohio $8.30 San Mateo, California $13.50 ($12.00 for nonprofits)
Rhode Island $10.10 Santa Clara, California $13.00
South Dakota $8.85 Seattle, Washington $15.45 for Schedule 1 Employers
Vermont $10.50 $15.00 for Schedule 1 Employers with medical benefits
Washington $11.50 $11.50 for Schedule 2 Employers;
$14.00 for Schedule 2 Employers with minimum compensation
Sunnyvale, California $15.00
Upstate New York $10.40 for non-fast food employees

Minimum wage is only one of a dozen or more areas of compliance employers will be examining at the start of 2018. 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 then ever before.