While the Federal minimum wage remains at $7.25 per hour, 18 states and many cities/locals have set increases effective January 1st, 2018. A list of each state/local, along with the new hourly rate, and a link to the states determination letter or web page is listed below;
- Alaska: $9.84 an hour
- Albuquerque, New Mexico: $8.95
- Arizona: $10.50
- Bernalillo County, New Mexico: $8.85
- California: $11.00 for businesses with 26 or more employees; $10.50 for businesses with 25 or fewer employees
- Colorado: $10.20
- Cupertino, California: $13.50
- El Cerrito, California: $13.60
- Flagstaff, Arizona: $11.00
- Florida: $8.25
- Hawaii: $10.10
- Los Altos, California: $13.50
- Maine: $10.00
- Michigan: $9.25
- Milpitas, California: $12.00
- Minneapolis, Minnesota: $10.00 for businesses with more than 100 employees
- Minnesota: $9.65 for businesses with annual gross revenue of $500,000 or more; $7.87 for businesses with annual gross revenue of less than $500,000
- Missouri: $7.85
- Montana: $8.30
- Mountain View, California: $15.00
- New Jersey: $8.60
- New York: $13.00 for standard New York City businesses with 11.00 for more employees; $12.00 for standard New York City businesses with 10 or fewer employees; $11.00 for standard workers in Long Island and Westchester; $10.40 for standard workers in the rest of New York state; $13.50 for fast food workers in New York City; $11.75 for fast food workers in the rest of the state
- Oakland, California: $13.23
- Ohio: $8.30
- Palo Alto, California: $13.50
- Rhode Island: $10.10
- Richmond, California: $13.41
- San Jose, California: $13.50
- San Mateo, California: $13.50 for standard businesses; $12.00 for non-profits
- Santa Clara, California: $13
- SeaTac, Washington: $15.64 for hospitality and transportation employees
- Seattle, Washington: $15.45 for businesses with 501 or more employees that don’t offer medical benefits; $15.00 for businesses with 501 or more employees that do offer medical benefits; $14.00 for businesses with 500 or fewer employees that don’t offer medical benefits; $11.50 for businesses with 500 or fewer employees that do offer medical benefits
- South Dakota: $8.85
- Sunnyvale, California: $15.00
- Tacoma, Washington: $12.00
- Vermont: $10.50
- Washington state: $11.50 an hour
A question we are often asked is in regards to the timing of the rate change. A rate change takes place on January 1st, means that it is for work performed on or after that date. It is not based on the date the wages are paid. For example, if your biweekly pay period is from 12/18/2017 to 12/31/2017, with a check date of January 5th, 2018, all of those hours worked would be paid at the 2017 rate, even though it is being paid in 2018. A situation occurs when your pay period straddles two different calendar years, and a few days needs to be paid at the old rate and a few days at the new. This may cause a nightmare of work if your timekeeping/payroll system cannot handle assigning rates based on the day worked. The easiest solution would be to pay the entire pay period at the new rate. Yes, one may see this as ‘overpaying’ the employees, but in most cases the added administrative work involved may overshadow the additional wages paid. With PayMaster HCM time & labor and payroll, rates are assigned on a daily basis, so mid-payperiod rate changes are never an issue.
The following 21 states are all remaining at the Federal minimum wage level of $7.25. A rate that has been in place since July 24th, 2009. Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Wisconsin, Wyoming.
A final note. If your state has enacted a rate change, this means that you will need to update your state labor poster.
If your state is not listed, check with your state’s department of labor to confirm there was no rate change for 2018. The data listed is for general informational purposes only and should not be used as legal or professional advice. Please contact your state and local agency for more information regarding your State Minimum Wage.
