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The Minimum Wage in 2018: A Rates-Only Update

By Lee Schreter and Sebastian Chilco

  • 8 minute read

Minimum wage laws can impact businesses of all sizes, whether operating nationwide, in multiple jurisdictions, or only in one city, county, or state. To help manage this challenge, we are publishing a rates-only update so employers know the minimum amount they must pay non-exempt employees. Below we detail state- and local-level changes to the minimum wage that are scheduled to occur throughout 2018. In certain places, employers may be able to count tips an employee receives toward the minimum wage. In these jurisdictions, if the direct wage an employer pays an employee plus tips equals the minimum wage, an employer’s minimum wage obligation has been met. But, if the direct wage plus tips does not equal the minimum wage, an employer must pay the employee the difference.

For employers that want more information on minimum wage-related developments that occurred in 2017 and a forecast on what to expect in 2018, we will cover these issues in the December edition of our monthly article, WPI Wage Watch: Minimum Wage and Overtime Updates. Because pending or future legislation could change minimum wage rates that become applicable on January 1 or later in 2018, we recommend employers stay apprised of developments via WPI Wage Watch and consult with counsel to confirm rates have not changed since publication.

Alaska

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJanuary 1, 2018$9.80$9.84Not applicableNo changeProhibitedNo change

Arizona

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJanuary 1, 2018$10.00$10.50$7.00$7.50$3.00No change
Local Laws
FlagstaffJanuary 1, 2018$10.50$11.00$7.50$8.00$3.00No change

California

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJanuary 1, 2018$10.50
(26 or more employees)
$11.00
(26 or more employees)
Not applicableNo changeProhibitedNo change
$10.00
(25 or fewer employees)
$10.50
(25 or fewer employees)
Local Laws
BerkeleyOctober 1, 2018$13.75$15.00Not applicableNo changeProhibitedNo change
$12.00
(Employer youth works & job training)
$13.25
(Employer youth works & job training)
CupertinoJanuary 1, 2018$12.00$13.50Not applicableNo changeProhibitedNo change
El CerritoJanuary 1, 2018$12.25$13.60Not applicableNo changeProhibitedNo change
EmeryvilleJuly 1, 2018$15.20
(56 or more employees)
To be determined
(56 or more employees)
Not applicableNo changeProhibitedNo change
$14.00
(55 or fewer employees)
$15.00
(55 or fewer employees)
Los AltosJanuary 1, 2018$12.00$13.50Not applicableNo changeProhibitedNo change
Los Angeles (City)July 1, 2018$12.00
(26 or more employees)
$13.25
(26 or more employees)
Not applicableNo changeProhibitedNo change
$10.50 
(25 or fewer employees)
$12.00
(25 or fewer employees)
Los Angeles County (Unincorporated)July 1, 2018$12.00
(26 or more employees)
$13.25
(26 or more employees)
Not applicableNo changeProhibitedNo change
$10.50
(25 or fewer employees)
$12.00
(25 or fewer employees)
MalibuJuly 1, 2018$12.00
(26 or more employees)
$13.25
(26 or more employees)
Not applicableNo changeProhibitedNo change
$10.50
(25 or fewer employees)
$12.00
(25 or fewer employees)
MilipitasJanuary 1  &
July 1, 2018
$11.00$12.00 &
$13.50
Not applicableNo changeProhibitedNo change
Mountain ViewJanuary 1, 2018$13.00$15.00Not applicableNo changeProhibitedNo change
OaklandJanuary 1, 2018$12.86$13.23
(Estimated - Subject to Change1)
Not applicableNo changeProhibitedNo change
Palo AltoJanuary 1, 2018$12.00$13.50Not applicableNo changeProhibitedNo change
PasadenaJuly 1, 2018$12.00
(26 or more employees)
$13.25
(26 or more employees)
Not applicableNo changeProhibitedNo change
$10.50
(25 or fewer employees)
$12.00
(25 or fewer employees)
RichmondJanuary 1, 2018$12.30 (Without benefits)$13.41 (Without benefits)Not applicableNo changeProhibitedNo change
$10.80 (With benefits)$11.91 (With benefits)
San Francisco (City & County)July 1, 2018$14.00$15.00Not applicableNo changeProhibitedNo change
$12.87
(Government supported employee)
To be determined
​(Government supported employee)
San JoseJanuary 1, 2018$12.00$13.50Not applicableNo changeProhibitedNo change
To be determined
(Youth training program)
To be determined
​(Youth training program)
San LeandroJuly 1, 2018$12.00$13.00Not applicableNo changeProhibitedNo change
San MateoJanuary 1, 2018$12.00$13.50Not applicableNo changeProhibitedNo change
$10.50 (Nonprofit)$12.00 (Nonprofit)
Santa ClaraJanuary 1, 2018$11.10$13.00Not applicableNo changeProhibitedNo change
Santa MonicaJuly 1, 2018$12.00
(26 or more employees)
$13.25
(26 or more employees)
Not applicableNo changeProhibitedNo change
$10.50
(25 or fewer employees)
$12.00
(25 or fewer employees)
SunnyvaleJanuary 1, 2018$13.00$15.00Not applicableNo changeProhibitedNo change

Colorado

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJanuary 1, 2018$9.30$10.20$6.28$7.18$3.02No change

District of Columbia

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
District LawJuly 1, 2018$12.50$13.25$3.33$3.89$9.17$9.36

Florida

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJanuary 1, 2018$8.10$8.25$5.08$5.23$3.02No change

Hawaii

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJanuary 1, 2018$9.25$10.10$8.50
(Wages and tips must equal at least $7.00 more than minimum wage)
$9.35
(Wages and tips must equal at least $7.00 more than minimum wage)
$.75No change

Illinois

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawNot applicable$8.25Same$4.95Same$3.30Same
Local Laws
ChicagoJuly 1, 2018$11.00$12.00$6.10To be determined$4.90To be determined
Cook CountyJuly 1, 2018$10.00$11.00$4.95To be determined$5.05To be determined

Maine

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJanuary 1, 2018$9.00$10.00$5.00No change$4.00$5.00
Local Laws
PortlandJuly 1, 2018$10.68To be determined$5.00To be determined$5.68To be determined

Maryland

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJuly 1, 2018$9.25$10.10$3.63No change$5.62$6.47
Local Laws
Montgomery County(PROPOSED)
July 1, 2018
$11.50
(All employers)
(PROPOSED)
$12.25
(51 or more employees)
$4.00
(All employers)
(PROPOSED)
No change
$7.50
(All employers)
(PROPOSED)
$8.25
(51 or more employees)
$12.00
(11-50 employees / 11+ employees & 501(c)(3) or home health services provider / 10 or fewer employees)
$8.00
(Other)

Michigan

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJanuary 1, 2018$8.90$9.25$3.38$3.52$5.52$5.73

Minnesota

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJanuary 1, 2018$9.50
($500,000 annual gross sales)
$9.65
($500,000 annual gross sales)
Not ApplicableNo changeProhibitedNo change
$7.75
(Less than $500,000 annual gross sales / Certain hotels, etc.)
$7.87
(Less than $500,000 annual gross sales / Certain hotels, etc.)
Minneapolis
(More than 100 employees)
January 1 &
July 1, 2018
State law$10.00 &
$11.25
Not ApplicableNo changeProhibitedNo change
Minneapolis
(100 or fewer employees)
July 1, 2018State law$10.25Not ApplicableNo changeProhibitedNo change

Missouri

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJanuary 1, 2018$7.70$7.85
(Estimated - Subject to Change)2
$3.85$3.925
(Estimated - Subject to Change)
$3.85$3.925
(Estimated - Subject to Change)

Montana

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJanuary 1, 2018$8.15$8.30Not applicableNo changeProhibitedNo change

Nevada

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJuly 1, 2018$7.25
(Health benefits offered)
To be determinedNot applicableNo changeProhibitedNo change
$8.25
(No health benefits)

New Jersey

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJanuary 1, 2018$8.44$8.60$2.13
(Suggested)
No change$6.31$6.47

New Mexico

JurisdictionDate of
Rate Change
2016
Minimum Wage
2017
Minimum Wage
2016
Minimum Cash Wage
2017
Minimum Cash Wage
2016
Maximum Tip Credit
2017
Maximum Tip Credit
State LawNot applicable$7.50No change$2.13No change$5.37No change
Local Laws
AlbuquerqueJanuary 1, 2018$8.80
(Without benefits)
$8.95
(Without benefits)
$5.30$5.35$3.50
(Without benefits)
$3.60
(Without benefits)
$7.80
(With benefits)
$7.95
(With benefits)
$2.50
(With benefits)
$2.60
(With benefits)
Bernalillo County (Unincorporated)January 1, 2018$8.70
(Without benefits)
$8.85
(Without benefits)
$2.13No change$6.57
(Without benefits
$6.72
(Without benefits)
$7.70
(With benefits)
$7.85
(With benefits)
$5.57
(With benefits)
$5.72
(With benefits)
Las Cruces3January 1, 2018
(See Footnote)
$9.20$9.45
(See Footnote)
$3.68$3.78
(See Footnote)
$5.52$5.67
(See Footnote)
Santa Fe (City)March 1, 20184$11.09To be determined$2.13To be determined$8.96To be determined
Santa Fe County (Unincorporated)March 1, 2018$11.09To be determined$3.32To be determined$7.77To be determined

New York
Generally

DateFast Food Worker
(New York City)
Fast Food Worker
(Outside New York City)
New York City
(11 or More Employees)
New York City
(10 or Fewer Employees)
Nassau, Suffolk & Westchester CountiesRemainder of New York
Currently$12.00$10.75$11.00$10.50$10.00$9.70
December 31, 2017$13.50$11.75$13.00$12.00$11.00$10.40
December 31, 2018$15.00$12.75$15.00$13.50$12.00$11.10

Tips

Generally: If an employee’s weekly tip average is less than the Low amount, a tip credit cannot be claimed. If an employee’s weekly tip average is between the Low and High amounts, the tip credit cannot exceed the Low amount. If an employee’s weekly tip average equals or exceeds the High amount, the tip credit cannot exceed the High amount.

Date
 
New York City
(11 or More Employees)
New York City
(10 or Fewer Employees)
Nassau, Suffolk & Westchester CountiesRemainder of New York
LowHighLowHighLowHighLowHigh
Currently$1.65$2.70$1.60$2.55$1.50$2.45$1.45$2.35
December 31, 2017$1.95$3.20$1.80$2.95$1.65$2.70$1.55$2.55
December 31, 2018$2.25$3.65$2.05$3.30$1.80$2.95$1.65$2.70

Hospitality Industry (Service Employee): A service employee must receive a wage of at least the hourly Cash Wage (CW), and a tip credit cannot exceed the hourly Tip Credit rate (TC), provided an employee’s weekly tip average at least the hourly Tip Threshold (TT) and the total of tips received plus wages equals or exceeds the basic minimum hourly rate (TT(R) is the tip threshold for resort hotel service employees).

DateNew York City
(11 or More Employees)
New York City
(10 or Fewer Employees)
 CWTCTTTT(R)CWTCTTTT(R)
Currently$9.15$1.85$2.40$6.15$8.75$1.75$2.30$5.90
December 31, 2017$10.85$2.15$2.80$7.30$10.00$2.00$2.60$6.75
December 31, 2018$12.50$2.50$3.25$8.40$11.25$2.25$2.95$7.60
DateNassau, Suffolk & Westchester CountiesRemainder of New York
 CWTCTTTT(R)CWTCTTTT(R)
Currently$8.35$1.65$2.15$5.60$8.10$1.60$2.10$5.45
December 31, 2017$9.15$1.85$2.40$6.15$8.65$1.75$2.25$5.85
December 31, 2018$10.00$2.00$2.60$6.75$9.25$1.85$2.40$6.25

Hospitality Industry (Food Service Worker): A food service worker must receive a wage of at least the hourly Cash Wage (CW), and a tip credit cannot exceed the below-specified hourly rate (TC) provided the total of tips received plus the wages equals or exceeds the hourly total minimum wage rate (MW). A tip credit is not permitted for fast food employees.

DateNYC (11 or More Employees)NYC (10 or Fewer Employees)Nassau, Suffolk & Westchester CountiesRemainder of New York
 CWTCMWCWTCMWCWTCMWCWTCMW
Currently$7.50$3.50$11.00$7.50$3.00$10.50$7.50$2.50$10.00$7.50$2.20$9.70
Dec. 31, 2017$8.65$4.35$13.00$8.00$4.00$12.00$7.50$3.50$11.00$7.50$2.90$10.40
Dec. 31, 2018$10.00$5.00$15.00$9.00$4.50$13.50$8.00$4.00$12.00$7.50$3.60$11.10

Ohio

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJanuary 1, 2018$8.15$8.30$4.08$4.15$4.07$4.15

Oregon

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State Law (General)July 1, 2018$10.25$10.75Not applicableNo changeProhibitedNo change
State Law (Urban)July 1, 2018$11.25$12.00
State Law (Nonurban)July 1, 2018$10.00$10.50

Rhode Island

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJanuary 1, 2018$9.60$10.10$3.89No change$5.71$6.21

South Dakota

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJanuary 1, 2018$8.65$8.85$4.325$4.425$4.325$4.425/hr.

Vermont

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJanuary 1, 2018$10.00$10.50$5.00$5.25$5.00$5.25

Washington State

JurisdictionDate of
Rate Change
2017
Minimum Wage
2018
Minimum Wage
2017
Minimum Cash Wage
2018
Minimum Cash Wage
2017
Maximum Tip Credit
2018
Maximum Tip Credit
State LawJanuary 1, 2018$11.00$11.50Not applicableNo changeProhibitedNo change
Local Laws
SeaTacJanuary 1, 2018$15.34$15.64Not applicableNo changeProhibitedNo change
SeattleJanuary 1, 2018$15.00
(Schedule 1 Minimum Wage)
$15.45
(Schedule 1 Minimum Wage)
Not applicableNo changeProhibitedNo change
$13.50
(Schedule 1 Minimum Wage with Medical Benefits)
$15.00
(Schedule 1 Minimum Wage with Medical Benefits)
$11.00
(Schedule 2 Minimum Wage)
$11.50
(Schedule 2 Minimum Wage)
$13.00
(Minimum Compensation)
$14.00
(Minimum Compensation)
TacomaJanuary 1, 2018$11.15$12.00Not applicableNo changeProhibitedNo change

 

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.

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