A new year, a new minimum wage rate

There is no surprise that minimum wages have increased in several states throughout the US. In addition to state minimum wages, some cities and counties have imposed increases of their own. If you pay your employees over the minimum wage, this may still affect your business.

What does this change mean for your business?

If your state, city or county has increased its minimum wage:

  • You must pay all minimum wage employees the new rate as of January 1, 2018.

  • It is time to purchase an updated labor law poster.

  • You may need to do further research if you plan to take legal deductions from an employee's paycheck, such as for uniforms, tools, and fines. Some state laws do not allow deductions below the Federal Minimum Wage, currently $7.25; other state laws do not allow deductions below the State Minimum Wage.

Minimum wage changes as of January 1, 2018

Minimum wage rates by state and locality, effective January 1, 2018
Alaska$9.84
Arizona$10.50 · Flagstaff $11.00
Arkansas$8.50
California$11.00 (26+ employees), $10.50 (fewer than 25)
Bay Area cities, CAMountain View & Sunnyvale $15.00 · El Cerrito $13.60 · Richmond $13.41 · Oakland $13.23
Silicon Valley, CACupertino, Los Altos, Palo Alto, San Jose, San Mateo $13.50 · Santa Clara $13.00 · Milpitas $12.00
Colorado$10.20
Connecticut$10.10
Delaware$8.25
District of Columbia$12.50
Florida$8.25
Georgia$5.15 (if not covered under federal regulations)
Hawaii$10.10
Illinois$8.25
Maine$10.00
Maryland$10.10
Massachusetts$11.00
Michigan$9.25
Minnesota$9.65 · $7.87 for sales under $500k · Minneapolis $10.00 (100+ employees)
Missouri$7.85
Montana$8.30 (gross sales above $110K)
Nebraska$9.00
Nevada$8.25 (employers not providing health insurance)
New Jersey$8.60
New Mexico$7.50 · Albuquerque $8.95 · Bernalillo County $8.85
New York$10.40 statewide · NYC $13.00 (11+ employees), $12.00 (fewer than 11) · Long Island & Westchester $11.00 · fast food $11.75, $13.50 in NYC
Ohio$8.30 (gross sales above $283K)
Oregon$10.75
Rhode Island$10.10
South Dakota$8.65
Vermont$10.50
Washington$11.50 · Tacoma $12.00 · SeaTac $15.64 (hospitality & transportation) · Seattle $11.50–$15.45 by size and benefits
West Virginia$8.75

If you see a change in your area, please discuss it with your staff — managers, accounting, and payroll.

Happy New Year!