A number of states and localities are about to implement mid-year hikes in the minimum wage. Below is a summary of the minimum wage increases (and related tipped minimum wage requirements, where applicable) that go into effect on July 1, 2018.

Current New
State Special Categories Minimum Wage Tipped Minimum Wage Minimum Wage Tipped Minimum Wage
Maryland $9.25 $3.63 $10.10 N/A
Nevada Employees with qualified

health benefits

$7.25 N/A
Employees without

health benefits

$8.25 N/A
Oregon General $10.25 $10.75
Urban (Portland Metro Urban Growth Area) $11.25 $12.00
Rural (Nonurban) $10.00 $10.50
Washington, D.C. $12.50 $3.33 $13.25 $3.89

 

Current New
Locality Categories Minimum Wage Tipped Minimum Wage Minimum Wage Tipped Minimum Wage
CA          
Belmont, CA N/A $12.50
Emeryville, CA 56 or more employees $15.20 $15.69
55 or fewer employees $14.00 $15.00
Los Angeles, CA (City) 26 or more employees $12.00 $13.25  
25 or fewer employees $10.50 $12.00  
Los Angeles, CA (County) Unincorporated areas of LA County, 26 or more employees $12.00 $13.25  
Unincorporated areas of LA County, 25 or fewer employees $10.50 $12.00  
Malibu, CA 26 or more employees $12.00 $13.25  
25 or fewer employees $10.50 $12.00  
Milpitas, CA $12.00 $13.50  
Pasadena, CA 26 or more employees $12.00 $13.25  
25 or fewer employees $10.50 $12.00  
San Francisco, CA Generally $14.00 $15.00  
Government-supported employees $12.87 $13.27  
San Leandro, CA $12.00 $13.00  
Santa Monica, CA 26 or more employees $12.00 $13.25  
25 or fewer employees $10.50 $12.00  
IL  
Chicago, IL $11.00 $6.10 $12.00 $6.25
Cook County, IL $10.00 $4.95 $11.00 $5.10
ME          
Portland, ME $10.68 $5.00 $10.90 N/A
MD
Montgomery County, MD 51 or more employees $11.50 $4.00 $12.25 N/A
11-50 employees, and provides certain home health services or is tax-exempt under 501(c)(3) $11.50 $4.00 $12.00 N/A
10 or fewer employees $11.50 $4.00 $12.00 N/A
MN
Minneapolis, MN 101 or more employees $10.00 $11.25
100 or fewer employees N/A N/A

This post was written with assistance from John W. Milani, a 2018 Summer Associate at Epstein Becker Green.

In 2017, a great many states and localities passed laws increasing minimum wages beginning on January 1, 2018. (Some passed laws that will be effective on July 1, 2018 or other dates.)

Below is a summary of the minimum wage updates (and related tipped minimum wage requirements, where applicable) that go into effect on January 1, 2018, unless otherwise indicated.

Current New
State Categories Minimum Wage Tipped Minimum Wage Minimum Wage Tipped Minimum Wage
Alaska $9.80 $9.84
Arizona $10.00 $7.00 $10.50 $7.50
California
26 or more employees $10.50 $11.00
25 or fewer employees $10.00 $10.50
Colorado $9.30 $6.28 $10.20 $7.18
Florida $8.10 $5.08 $8.25 $5.23
Hawaii $9.25 $8.50 $10.10 $9.35
Maine $9.00 $5.00 $10.00 $5.00
Michigan $8.90 $3.38 $9.25 $3.52
Minnesota
Large employer (annual gross revenue of $500,000 or more) $9.50 $9.65
Small employer (annual gross revenue of less than $500,000) $7.75 $7.87
Missouri $7.70 $3.85 $7.85 $3.925
Montana $8.15 $8.30
New Jersey $8.44 $6.31 $8.60 $6.47
New York (effective December 31, 2017)
NYC – more than 10 employees $11.00 $7.50* $13.00 $8.70
NYC – 10 or fewer employees $10.50 $7.50 $12.00 $8.00
Nassau, Suffolk, & Westchester Counties $10.00 $7.50 $11.00 $7.50
Remainder of State $9.70 $7.50 $10.40 $7.50
Ohio $8.15 $4.08 $8.30 $4.15
Rhode Island $9.60 $3.89 $10.10 $3.89
South Dakota $8.65 $4.325 $8.85 $4.425
Vermont $10.00 $5.00 $10.50 $5.25
Washington $11.00 $11.50

*Different rules apply based on certain industries, such as for food service, fast food (within New York City), and hospitality industries.

Current New
Location Categories Minimum Wage Tipped Minimum Wage Minimum Wage Tipped Minimum Wage
Arizona          
Flagstaff, AZ $10.50 $11.00
California          
Cupertino, CA $12.00 $13.50  
El Cerrito, CA $12.25 $13.60  
Los Altos, CA $12.00 $13.50  
Milpitas, CA $11.00 $12.00  
Mountain View, CA $13.00 $15.00  
Oakland, CA $12.86 $13.23  
Palo Alto, CA $12.00 $13.50  
Richmond, CA $12.30 $13.41  
Sacramento, CA 40 or more employees $10.50 $11.00  
San Jose, CA $12.00 $13.50  
San Mateo, CA  
501(c)(3) non-profit $10.50 $12.00  
Other businesses $12.00 $13.50  
Santa Clara, CA $11.10 $13.00  
Sunnyvale, CA $13.00 $15.00  
Maine          
Bangor, ME $8.25 $4.125 $9.00 $4.50
New Mexico          
Albuquerque, NM
No healthcare provided $8.80 $5.30 $8.95 $5.35
Health care provided $7.80 $5.30 $7.95 $5.35
Bernalillo County $8.70 $2.13 $8.85 $2.13
Washington          
Seattle, WA  
Small employer (500 or fewer employees) – without tips and/or medical benefits $13.00 $14.00  
Small employer (500 or fewer employees) – with tips and/or medical benefits $11.00 $11.50  
Large employer (501 or more employees) – without medical benefits $15.00 $15.45  
Large employer (501 or more employees) – with medical benefits $13.50 $15.00  
Tacoma, WA $11.15 $12.00  

 

 

Michael D. ThompsonThe Missouri Supreme Court has overturned a lower court’s ruling that St. Louis’ minimum wage ordinance is invalid, finding that the ordinance is not preempted by the state law.

St. Louis City’s Ordinance 70078 (“the Ordinance”) provides for a series of increases to the minimum wage for employees working within the boundaries of St. Louis. The plaintiffs argued that Ordinance 70078 was preempted by the state minimum wage law.  The plaintiffs contended that state law affirmatively authorized employers to pay as little as $7.65 per hour, the state minimum wage rate.

A trial court accepted the plaintiffs’ argument and, in October 2015, held that the Ordinance was invalid.

The Missouri Supreme Court reversed the trial court’s ruling and rejected the plaintiffs’ argument.  Because the state minimum wage law merely prohibits employers from paying employees a wage lower than the state minimum, local ordinances imposing higher minimum wages did not conflict with the state statute.

Furthermore, Missouri’s minimum wage law did not “occupy the field” of minimum wage laws. In fact, the Missouri Supreme Court noted that the state legislature had recognized and authorized local ordinances addressing minimum wages.

Notably, both the trial court and the Missouri Supreme Court rejected the plaintiffs’ argument based on Section 67.1571 of the Missouri Statutes, which prohibits “political subdivisions of this state from establishing or requiring a minimum wage that exceeds the state minimum wage.” The courts agreed that the Missouri Constitution prohibits bills containing more than one subject, and Section 67.1571 violated this requirement because its primary purpose was to establish community improvement districts.

Under the phase-in schedule in the Ordinance, the minimum wage in St. Louis was set to rise to $10.00 per hour on January 1, 2017 and $11.00 per hour on January 1, 2018, after which the minimum wage will be increased annually to reflect the rate of inflation.

St. Louis city officials issued a statement explaining that businesses will be provided “a reasonable grace period to adjust to the new minimum wage rate,” but will be subject to revocation of their business licenses if they do not comply with the Ordinance.

One of the featured stories on Employment Law This Week – Epstein Becker Green’s new video program – is the increase in minimum wage laws across the country in 2016. Nationwide, activism around minimum wages has had a big impact on new legislation coming into effect this year. Sixteen states and the District of Columbia will raise their minimum wages in 2016. California and Massachusetts will have the highest state minimum wages at $10/hour. Some city governments have gone even higher. San Francisco employers and large Seattle employers who do not provide medical benefits will have to pay a minimum of $13/hour.

See below to view the episode and read more about this important decision in an earlier post on this blog.

By Jeffrey Ruzal

President Obama has spent much of his second term zealously pursuing an increase to the current $7.25 federal minimum hourly wage. While it is not clear whether a federal wage hike is in the offing, many states have recently taken measures to increase their own minimum wage rates. Effective January 1, 2014, Arizona, Colorado, Connecticut, Florida, Missouri, Montana, New Jersey, New York, Ohio, Oregon, Rhode Island, Vermont and Washington have all increased their minimum wage rates. There are also five additional states, California, Delaware, Michigan, Minnesota, West Virginia, plus the District of Columbia, which have passed legislation for future minimum wage increases that will take effect in 2014.

Employers, especially ones which operate in multiple states, must be vigilant in monitoring and planning for future state minimum wages increases. What is more, employers in specific industries, such as hospitality, must consider additional compliance measures, including changes in the maximum tip credit an employer may take against its tipped employees’ hourly wages.

The chart below provides each state’s previous and current minimum wage and maximum tip credit rates, as well as scheduled future increases through the end of 2014.

State

Previous Minimum Wage

Current Minimum Wage

Future Minimum Wage Increases in 2014

Previous Tip Credit

Current Tip Credit

Arizona

$7.80

$7.90

(effective 1/1/14)

$4.80

$4.90

(eff. 1/1/14)

California

$8.00

$9.00

(eff. 7/1/14)

No tip credit permitted

Colorado

$7.78

$8.00

(eff. 1/1/14)

$4.76

$4.98

(eff. 1/1/14)

Connecticut

$8.25

$8.70

(eff. 1/1/14)

$7.34 for bartenders; $5.69 all other tipped employees

Delaware

$7.25

$7.75

(eff. 6/1/14)

$2.23

D.C.

$8.25

$9.50

(eff. 7/1/14)

$2.77

Florida

$7.79

$7.93

(eff. 1/1/14)

$4.77

$4.91

(eff. 1/1/14)

Michigan

$7.40

$8.15

(eff. 9/1/14)

$2.65

Minnesota

$6.15 for employers w/ annual sales >$625,000; $5.25 for employers w/ < $625,000

$8.00 for employers w/ annual sales >$500,000; $6.50 for employers w/ < $500,000

(eff. 8/1/14)

$6.15 for employers w/ annual sales >$625,000; $5.25 for employers w/ < $625,000

Missouri

$7.35

$7.50

(eff. 1/1/14)

$3.68

$3.75

(eff. 1/1/14)

Montana

$7.80

$7.90

(eff. 1/1/14)

No tip credit permitted

New Jersey

$7.25

$8.25

(eff. 1/1/14)

$2.13

No change in tip credit

New York

$7.25

$8.00

(eff.12/31/13)

$8.75

(eff.12/31/14)

$5.00 for food service employees; $5.65 for service employees (delivery and coat check)

No change in tip credit

Ohio

$7.85

$7.95

(eff. 1/1/14)

$3.93

$3.98

(eff. 1/1/14)

Oregon

$8.95

$9.10

(eff. 1/1/14)

No tip credit permitted

Rhode Island

$7.75

$8.00

(eff. 1/1/14)

$2.89

No change in tip credit

Vermont

$8.60

$8.73

(eff. 1/1/14)

$4.17

$4.23

(eff. 1/1/14)

Washington

$9.19

$9.32

(eff. 1/1/14)

No tip credit permitted

West Virginia

$7.25

$8.00

(eff.12/31/14)

$5.80