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Employers Must Account for Numerous State and Local Minimum Wage Hikes Effective January 1, 2019

In recent years, a growing number of states and localities have enacted unique minimum wage laws and ordinances entitling employees to be paid more – in some cases, substantially more – than the federal minimum wage, which has stood at $7.25 for nearly a decade.

As these minimum wages become more particularized, multi-jurisdictional employers face an increasing challenge to maintain compliance.

Below is an overview of notable increases slated to take effect on January 1, 2019, unless otherwise noted.

Please note that, at this late date, the 2019 minimum wage remains the subject of debate in several jurisdictions, including Michigan, where the modification of a bill in December 2018 has stirred controversy as it awaits executive signature.

Minimum Wage Hikes Applicable in the States and Territories

 

 

Current

New

State

Categories
(if any)

Minimum Wage

Tipped Minimum Wage

Minimum Wage

Tipped Minimum Wage

Alaska

 

$9.84

 

$9.89

 

Arizona

 

$10.50

$7.50

$11.00

$8.00

Arkansas

 

$8.50

 

$9.25

 

California

26 or more employees

$11.00

 

$12.00

 

 

25 or fewer employees

$10.50

 

$11.00

 

Colorado

 

$10.20

$7.18

$11.10

$8.08

Delaware

 

$8.25

 

$8.75

 

District of Columbia

 

$13.25

 

$14.00

 

Florida

 

$8.25

$5.23

$8.46

$5.44

Maine

 

$10.00

$5.00

$11.00

$5.50

Massachusetts

 

$11.00

$3.75

$12.00

$4.35

Minnesota

Large employer (annual gross revenue of $500,000 or more)

$9.65

 

$9.86

 

 

Large employer 90-day training wage

$7.87

 

$8.04

 

 

Large employer youth wage (under 18 years of age)

$7.87

 

$8.04

 

 

Small employer (annual gross revenue of less than $500,000)

$7.87

 

$8.04

 

Missouri

 

$7.85

$3.93

$8.60

$4.30

Montana

 

$8.30

 

$8.50

 

New Jersey

 

$8.60

 

$8.85

 

New York (effective December 31, 2018)*

 

$10.40

$7.85 (when tips are $2.55 or more)

 

$8.85 (when tips are at least $1.55, but less than $2.55)

11.10

$8.40 (when tips are $2.70 or more)

 

$9.45 (when tips are at least $1.65 but less than $2.70)

Ohio**

Employers with gross revenues equal to or exceeding $314,000 (previously $305,000)

$8.30

$4.15

$8.55

$4.30

 

Employers with gross revenues less than $314,000 (previously $305,000)

 

$4.15

 

$4.30

Rhode Island

 

$10.10

 

$10.50

 

South Dakota

 

$8.85

$4.43

$9.10

$4.55

Vermont

 

$10.50

$5.25

$10.78

$5.39

Washington

 

$11.50

$11.50

$12.00

$12.00

* The minimum wages identified herein with respect to New York State and its localities are the general minimum wages. Different rules apply to certain categories of employees within certain regions and industries, including hospitality and building services.   Employers in New York State should take extra care to consult the state or local rules that may apply within their industries.

** Employees under the age of 16 may be paid no less than the federal minimum wage.

Localized Minimum Wage Hikes

 

 

Current

New

Locality

Categories
(if any)

Minimum Wage

Tipped Minimum Wage

Minimum Wage

Tipped Minimum Wage

Arizona

 

 

 

 

 

Flagstaff, AZ

 

$11.00

 

$12.00

 

California

 

 

 

 

 

Belmont, CA

 

$12.50

 

$13.50

 

Cupertino, CA

 

$13.50

 

$15.00

 

El Cerrito, CA

 

$13.60

 

$15.00

 

Los Altos, CA

 

$13.50

 

$15.00

 

Mountain View, CA

 

$15.00

 

$15.65

 

Oakland, CA

 

$13.23

 

$13.80

 

Palo Alto, CA

 

$13.50

 

$15.00

 

Redwood City, CA

 

N/A

 

$13.50

 

Richmond, CA+

Without specified medical benefits

$13.41

 

$15.00

 

 

With specified medical benefits

$11.91

 

$13.50

 

San Diego, CA

 

$11.50

 

$12.00

 

San Jose, CA

 

$13.50

 

$15.00

 

San Mateo, CA

501(c)(3) non-profit

$12.00

 

$13.50

 

 

Other businesses

$13.50

 

$15.00

 

Santa Clara, CA

 

$13.00

 

$15.00

 

Sunnyvale, CA

 

$15.00

 

$15.65

 

New Mexico

 

 

 

 

 

Albuquerque, NM++

Specified benefits not provided

$8.95

$5.35

$9.20

$5.50

 

Specified benefits provided

$7.95

$5.35

$8.20

$5.50

Bernalillo County, NM

 

$8.85

 

$9.05

 

Las Cruces, NM

 

$9.20

$3.68

$10.10

$4.04

New York

 

(effective December 31, 2018)

 

 

 

 

 

NYC

more than 10 employees

$13.00

$9.80 (when tips are $3.20 or more)

 

$11.05 (when tips are at least $1.95, but less than $3.20)

$15.00

$11.35 (when tips are $3.65 or more)

 

$12.75 (when tips are at least $2.25, but less than $3.65)

NYC

10 or fewer employees

$12.00

$9.05 (when tips are $2.95 or more)

 

$10.20 (when tips are at least $1.80, but less than $2.95)

$13.50

$10.30 (when tips are $3.30 or more)

 

$11.45 (when tips are at least $2.05, but less than $3.30)

Nassau, Suffolk, & Westchester Counties, NY

 

$11.00

$8.30 (when tips are more than $2.70)

 

$9.35 (when tips are at least $1.65, but less than $2.70)

$12.00

$9.05 (when tips are more than $2.95)

 

$10.20 (when tips are at least $1.80, but less than $2.95)

Washington

 

 

 

 

 

Seattle, WA+++

Small employer (500 or fewer employees)

$14.00

 

(or $11.50, with difference made up in tips or benefits)

 

$15.00

 

(or $12.00, with difference made up in tips or benefits)

 

 

Large employer (501 or more employees) – with medical benefits

$15.45

 

(or $15.00, with difference made up in benefits)

 

$16.00

 

SeaTac, WA

Hospitality and transportation employees

$15.64

 

$16.09

 

Tacoma, WA

 

$12.00

 

$12.35

 

+ An employer may pay employees $1.50 less than the minimum hourly wage provided that the employer pays at least $1.50 per hour, per employee, towards an employee medical benefits plan that allows employees to receive employer-compensated care from a licensed physician.

++ Employers may offer a lower minimum wage if they provide the employee with healthcare and/or childcare benefits equal to or greater than an annualized cost of $2,500.00.

+++ In 2019, the two-tier system in which employees that offer certain benefits may offer a lower minimum wage will no longer apply to large employers.

©2019 Epstein Becker & Green, P.C. All rights reserved.

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About this Author

Senior Counsel

EDWARD M. YENNOCK is a Senior Counsel in the Employment, Labor & Workforce Management and Litigation practices, in the New York office of Epstein Becker Green. He focuses his practice on the areas of employment disputes and complex civil litigation.

In 2017, Mr. Yennock was named to the New York Metro Rising Stars list, in the areas of Employment Litigation: Defense and Employment & Labor.

Mr. Yennock:

  • Represents employers in lawsuits, arbitrations, and mediations...
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David Prager, employment lawyer, Epstein Becker
Associate

DAVID M. PRAGER is an Associate in the Employment, Labor & Workforce Management practice, in the Los Angeles office of Epstein Becker Green.

Mr. Prager:

  • Advises on and litigates unfair competition, non-compete, and trade secret matters, including disputes involving the misappropriation of trade secrets by former employees
  • Defends management in discrimination, harassment, retaliation, wrongful termination, and wage and hour matters, including individual and class action lawsuits, in state and federal courts and before arbitration tribunals and administrative agencies
  • Counsels employers on personnel issues, including employee hiring, discipline, termination, accommodation, leaves of absence, wage and hour compliance, and the preparation of employee handbooks and personnel policies
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James Sawczyn, litigation, discrimination, Epstein Becker Green, Law Firm
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JAMES J. SAWCZYN is an Associate in the Employment, Labor, and Workforce Management practice, in the Newark office of Epstein Becker Green.

Mr. Sawczyn:

  • Assists with the defense of employers in state and federal courts in single-plaintiff and class action disputes involving claims of discrimination, harassment, wrongful termination, whistleblowing, and other employment-related issues
  • Counsels employers on Fair Labor Standards Act (FLSA) wage and hour laws and the classification of workers
  • Assists in the negotiation of collective...
973-848-7728
Frances Kenajian, Epstein Becker Law Firm, New York, Labor & Employment Litigation, Law Clerk
Law Clerk

FRANCES KENAJIAN* is a Law Clerk – Admission Pending – in the Litigation & Business Disputes practice, in the New York office of Epstein Becker Green. She will be focusing her practice on business and labor & employment litigation. 

Ms. Kenajian received her Juris Doctor, cum laude, from Brooklyn Law School, where she served as a Notes and Comments Editor of the Brooklyn Law School Journal of Law and Policy and received CALI Excellence for the Future Awards in Labor Law and...

212-351-5547