With the new year comes new laws, regulations and revisions to existing laws. Staying in front of the new minimum wage requirements is an operational imperative. Here is a concise overview from our Think HR Human resource tool for our existing clients.
Overview :
The current federal minimum wage rate is $7.25 per hour. However, many states have adopted minimum wage rates higher than the federal rate. When the state rate and the federal rate are different, employers must pay their employees the higher rate. The following states have adopted new minimum wage rates for 2018:
| · Alaska | · Maryland | · Oregon |
| · Arizona | · Michigan | · Rhode Island |
| · California | · Minnesota | · South Dakota |
| · Colorado | · Missouri | · Vermont |
| · Florida | · Montana | · Washington |
| · Hawaii | · New Jersey | · Washington D.C. |
| · Maine | · New York |
Action Steps
Affected employers should review their employees’ pay rates and update their minimum wage poster notices as necessary to ensure compliance with local wage and hour regulations.
New York – Minimum Wage as of 1/1/2018
| Affected Employers | New Rate | Effective Date |
| New York City (NYC) large employers: At least one employee in NYC and 11 or more employees among all other worksites at any time during the current or prior calendar year. (This minimum wage rate is payable to any employees that work in NYC.) | $13 | Dec. 31, 2017 |
| NYC small employers: At least one employee in NYC and 10 or fewer employees among all other worksites at any time during the current or prior calendar year. (This minimum wage rate is payable to any employees that work in NYC.) | $12 | Dec. 31, 2017 |
| Employers in Long Island and Westchester | $11 | Dec. 31, 2017 |
| Employers in the remainder of the state of New York | $10.40 | Dec. 31, 2017 |
California :
| Affected Employers | New Rate | Effective Date |
| Employers with 26 or more employees | $11 | Jan. 1, 2018 |
| Employers with 25 or fewer employees | $10.50 | Jan. 1, 2018 |
Other States :
| State | 2018 Rate | New Rate Effective Date | Tip Rate/Notes
(Employees must qualify for tip rate before the rate applies) |
| Alabama | $7.25 | N/A | No state minimum wage rate. The federal rate applies. |
| Alaska | $9.84 | Jan. 1, 2018 | Tips do not count toward the minimum wage. |
| Arizona | $10.50 | Jan. 1, 2018 | $3 below minimum wage rate for tipped employees. |
| Arkansas | $8.50 | N/A | $2.63 rate for tipped employees. |
| Colorado | $10.20 | Jan. 1, 2018 | $7.18 rate for tipped employees. |
| Connecticut | $10.10 | N/A | 36.8 percent gratuity allowance for waitpersons and 18.5 percent for bartenders. |
| Delaware | $8.25 | N/A | $2.23 rate for tipped employees. |
| D.C. | $13.25 | July 1, 2018 | $3.89 rate for tipped employees. |
| Florida | $8.25 | Jan. 1, 2018 | Rate for tipped employees follows federal guidelines (currently $2.13 per hour). |
| Georgia | $5.15 | N/A | The $7.25 federal rate applies to employers covered by the FLSA. |
| New Mexico | $7.50 | N/A | $2.13 for tipped employees. |
| North Carolina | $7.25 | N/A | $2.13 for tipped employees. |
| North Dakota | $7.25 | N/A | $4.86 for tipped employees. |
| Ohio | $8.30/$7.25 | N/A | $4.15 for tipped employees. The $7.25 rate is for employers grossing $299,000 or less. |
| Oklahoma | $7.25/$2.00 | N/A | The $7.25 rate applies to employers with 10 or more full-time employees at any one location and employers with annual gross sales over $100,000; all others are subject to state minimum wage of $2.00. |
| Oregon | $10.75 | July 1, 2018 | No tip credit allowed. The minimum wage rate for the Portland metro area will increase to $12 per hour and to $10.50 in nonurban counties. |
| Pennsylvania | $7.25 | N/A | $2.83 for tipped employees. |
| Rhode Island | $10.10 | Jan. 1, 2018 | $3.89 for tipped employees. |
| South Carolina | None | N/A | |
| South Dakota | $8.85 | Jan. 1, 2018 | $4.425 for tipped employees. |
| Tennessee | None | N/A | |
| Texas | $7.25 | N/A | $2.13 for tipped employees. |
| Utah | $7.25 | N/A | $2.13 for tipped employees. |
| Vermont | $10.50 | Jan. 1, 2018 | $5.25 for tipped employees. |
| Virginia | $7.25 | N/A | $2.13 for tipped employees. |
| Washington | $11.50 | Jan. 1, 2018 | No tip credit allowed. |
| West Virginia | $8.75 | N/A | Employers can take a tip credit of up to 70 percent of the state rate. |
| Wisconsin | $7.25 | N/A | $2.33 for tipped employees |
| Wyoming | $5.15 | N/A | $2.13 for tipped employees. The $7.25 federal rate applies to employers covered by the FLSA. |
| Georgia | $5.15 | N/A | The $7.25 federal rate applies to employers covered by the FLSA. |
| Hawaii | $10.10 | Jan. 1, 2018 | $9.35 for tipped employees. |
| Idaho | $7.25 | N/A | $3.35 per hour for tipped employees. |
| Illinois | $8.25 | N/A | Credit for tips may not exceed 40 percent of the applicable minimum wage. |
| Indiana | $7.25 | N/A | $2.13 for tipped employees. |
| Iowa | $7.25 | N/A | $4.35 for tipped employees. |
| Kansas | $7.25 | N/A | $2.13 for tipped employees. |
| Kentucky | $7.25 | N/A | $2.13 for tipped employees. |
| Louisiana | $7.25 | N/A | No state minimum wage rate. The federal rate applies. |
| Maine | $10 | Jan. 1, 2018 | Tip credit cannot exceed 50 percent of the minimum wage rate. |
| Maryland | $10.10 | July 1, 2018 | $3.63 for tipped employees |
| Massachusetts | $11.00 | N/A | The service rate is $3.75. |
| Michigan | $9.25 | Jan. 1, 2018 | $3.52 for tipped employees. |
| Minnesota | $9.65/$7.87 | Jan. 1, 2018 | No tip credit allowed. Higher rate applies to large employers. Lower rate applies to small employers. |
| Mississippi | $7.25 | N/A | No state minimum wage rate. The federal rate applies. |
| Missouri | $7.85 | Jan. 1, 2018 | $3.85 (half the current minimum rate) for tipped employees. |
| Montana | $8.30/$4 | Jan. 1, 2018 | No tip credit, meal credit or training wage is allowed. The lower rate applies to business with gross annual sales of $110,000 or less. |
| Nebraska | $9.00 | N/A | $2.13 for tipped employees. |
| Nevada | $8.25/$7.25 | N/A | The $8.25 rate applies to employees without health benefits. The $7.25 rate applies to employees with health benefits. No tip credit allowed. |
| New Hampshire | $7.25 | N/A | Tipped employees must receive 45 percent of the applicable rate. |
| New Jersey | $8.60 | Jan. 1, 2018 | $2.13 for tipped employees. |
For more information on minimum wage requirements in your state, contact Metropolitan Risk today!
