2018 is shaping up to be a big year for state minimum wage changes. Once again, several states will ring in the New Year with increases to their state minimum wage rates.
What is minimum wage?
The Fair Labor Standards Act (FLSA) requires certain employers, as defined by the law, to pay a minimum wage for all hours an employee is suffered or permitted to work. The federal minimum wage rate (currently $7.25) hasn't been changed since 2009, but individual cities and states can choose to set their minimum wages at higher rates than that of the federal rate.
2018 state minimum wage changes
The states with state minimum wage changes effective January 1, 2018, are:
California: $11.00 for large employers / $10.50 for employers with < 25 employees
Minnesota: $9.65 for large employers / $7.87 for small employers
Montana: $8.30 for employers with gross annual sales ≤ $110,000
New Jersey: $8.60
Ohio: $8.30 for employers grossing > $299,000 / $7.25 for employers grossing ≤ $299,000
Rhode Island: $10.10
South Dakota: $8.85
New York: $10.40 (effective December 31, 2017)
In addition to those with minimum wage increases effective on the first day of the year, two more states (MD, OR) and Washington D.C. have minimum wage rate increases scheduled for July 1, 2018.
For more detailed information on the state minimum wage rates, visit the Economic Policy Institute's Minimum Wage Tracker.
NOTE: There are also several local jurisdictions that will see changes in 2018. This article is specific to state minimum wage changes.
Employers affected by these state minimum wage increases, or with questions about which minimum wage laws may or may not apply to them, should consult their employment counsel or compliance officer.
This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.