LABOR LAW NEWS
Early 2019 State Minimum Wage Updates
By Patricia Mumford – GovDocs Director, Product Compliance and Adam Roberts – GovDocs, Compliance Analyst
Published on October 24, 2018
Several states will increase their minimum wages for 2019. In fact, 17 states will be changing their minimum wage between Dec. 31, 2018, and Jan. 1, 2019:
Alaska statutes require the state to adjust its minimum wage annually for inflation using the Consumer Price Index (CPI). However, the state has not yet announced its minimum wage for 2019.
Arizona has a planned increase effective Jan. 1, 2019. The state minimum wage will increase from $10.50 to $11; the tipped minimum wage will increase from $7.50 to $8. Both increases are the result of Proposition 206, a November 2016 ballot that went into effect July 1, 2017.
The state minimum wage will reach $12 by 2020.
Guide: County and City Minimum Wage Rate Updates, July 1, 2019
Effective Jan. 1, 2019, the minimum wage for California employers with 25 or less employees increases from $10.50 to $11.00. Employers with 26 or more employees will see the minimum wage increase from $11 to $12. The state minimum wage will reach $15 by 2022.
Colorado will increase the state minimum wage from $10.20 to $11.10 effective Jan. 1, 2019. The tipped minimum wage is set at $3.02 less than the regular minimum wage, increasing from $7.18 to $8.08.
Florida has announced its annual indexed rate, effective Jan. 1, 2019, where its minimum wage will increase from $8.25 to $8.46, and its tipped minimum wage will increase from $5.23 to $5.44.
This year, Massachusetts passed legislation to increase the state minimum wage to $15 by 2023. On Jan. 1, 2019, the state minimum wage will increase from $11 to $12. The tipped minimum wage will increase from $3.75 to $4.35.
Maine has a planned rate increase effective Jan. 1, 2019. The state minimum wage increases from $10 to $11, and the tipped minimum wage will increase from $5 to $5.50.
Large and small employers in Minnesota will pay a higher minimum wage in 2019. As of Jan. 1, 2019, the large employer – one with more than $500,000 in gross receipts – rate will increase from $9.65 to $9.86. The minimum wage for small employers will increase from $7.87 to $8.04. There is no separate rate for tipped employees.
Missouri’s state minimum wage annually adjusts due to indexing. However, the Missouri Department of Commerce has not yet announced the minimum wage effective for 2019. Furthermore, Missouri Proposition B, the $12 Minimum Wage Initiative, is on the Nov. 6 ballot. If passed, the minimum wage for 2019 would be $8.60.
Currently, employers in the state engaged in retail or service businesses with an annual gross income less than $500,000 are not required to pay the state minimum wage rate. Tipped employees must be paid half of the state minimum wage rate or $3.93 per hour.
The Montana Labor Department announced the state minimum wage will increase from $8.30 to $8.50 on Jan. 1, 2019. Montana prohibits tip credits, so tipped employees must be paid the full minimum wage.
New Jersey has annual indexed increases to its minimum wage. Effective Jan. 1, 2019, the minimum wage will increase from $8.60 to $8.85. The tipped minimum wage of $2.13 is statutorily set by the New Jersey Department of Labor and will not change.
New York is unique in that its wages change Dec. 31, not Jan. 1. Also, it has one of the most complicated minimum wage rate structures of any state. The minimum wage for New York State does not apply to New York City or the downstate counties of Nassau, Suffolk and Westchester.
As of Dec. 31, 2018, the state minimum wage will rate will increase from $10.40 to $11.10, and the tipped minimum wage will remain $7.50 for food service employees.
Please note New York’s state minimum wage law allows for wage orders that govern wage requirements in specific industries such as fast food, resort services and building services.
Ohio has annual indexed minimum wage increases. The Ohio Department of Commerce announced that the minimum wage will increase Jan. 1, 2019, for non-tipped employees from $8.30 to $8.55, and for tipped employees, from $4.15 to $4.30. Employers who gross less than $314,000 will not be covered by the law.
Rhode Island’s minimum wage will increase Jan. 1, 2019, from $10.10 to $10.50. The tipped minimum wage remains $3.89.
The South Dakota State Labor Department announced that the minimum wage for 2019 will increase from $8.85 to $9.10. The minimum wage for tipped employees will increase from $4.43 to $4.55.
Vermont will begin annual indexed increases to its minimum wage in 2019. On Jan. 1, 2019, the minimum wage will increase from $10.50 to $10.78. The minimum wage for tipped employees will increase from $5.25 to $5.39.
A ballot measure from 2016 means the minimum wage in Washington will be $13.50 by 2020. As of Jan. 1, 2019, the state minimum wage will increase from $11.50 to $12. There is no separate wage for tipped employees.
This Labor Law News Blog is intended for market awareness only, it is not to be used for legal advice or counsel.
The state minimum wage rate updates discussed in this blog do not include county and city minimum wage rates. Also, this blog only covers early 2019 state updates. It does not include any updates that are not taking effect in the early period of 2019. This blog was last updated on Oct. 24, 2018, and is up to date as of that date.
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