Tag Archives: minimum wage

2019 Minimum Wage Check-Up

With various cities and counties having enacted local minimum wages and 19 states (Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Maine, Massachusetts, Minnesota, Missouri, Montana, New Jersey, New York*, Ohio, Rhode Island, South Dakota, Vermont, and Washington) increasing their own minimum wages on January 1st (December 31st for New York), employers should take time to verify that they are meeting the minimum wage requirements of their state/city/county and prepare for any increases.

The below chart sets forth the minimum wage effective January 1, 2019.

Federal Minimum Wage $7.25

 

State City/County Amount?
Alabama $7.25
Alaska* $9.89
Arizona * all cities/counties except … $11.00
          Flagstaff* $12.00
Arkansas* $9.25
California* — all cities/counties except …                                 small employer (25 or less) $11.00

large employer (26 or more)

$12.00
          Belmont* $13.50
          Berkeley $15.00
          Cupertino* $15.00
          El Cerrito* $15.00
          Emeryville                                                                                                  small employer (55 or less) $15.00

large employer (56 or more)

$15.69
          Los Altos* $15.00
          Los Angeles                                                                                               small employer (25 or less) $12.00

large employer (26 or more)

$13.25
          Malibu                                                                                                         small employer (25 or less) $12.00

large employer (26 or more)

$13.25
          Milpitas $13.50
          Mountain View* $15.65
          Oakland* $13.80
          Palo Alto* $15.00
          Pasadena                                                                                                  small employer (25 or less) $12.00

large employer (26 or more)

$13.25
          Redwood City* $13.50
          Richmond*                                                employer PAYS $1.50/hr towards medical benefits $13.50

employer DOESN’T pay $1.50/hr towards medical benefits

$15.00
          San Diego* $12.00
          San Francisco $15.00
          San Jose* $15.00
          San Leandro $13.00
          San Mateo*                                                                                                 For-profit organizations $15.00

Non-profit organizations

$13.50
          Sacramento                                                                                          small employer (25 or less) $11.00

large employer (26 or more)

$12.00
          Santa Clara* $15.00
          Santa Monica                                                                                          small employer (25 or less) $12.00

large employer (26 or more)

$13.25

All hotels

$16.10
          Sunnyvale* $15.65
          Los Angeles County                                                                             small employer (25 or less)

          unincorporated areas                                                                        large employer (26 or more)

$12.00
$13.25
Colorado* $11.10
Connecticut $10.10
Delaware $8.75
Florida* $8.46
Georgia $7.25
Hawaii $10.10
Idaho $7.25
Illinois — all cities/counties except … $8.25
          Chicago $12.00
          Cook County

          (except for municipalities who have opted out)

$11.00
Indiana $7.25
Iowa $7.25
Kansas $7.25
Kentucky $7.25
Louisiana $7.25
Maine*  $11.00
Maryland — all cities/counties except … $10.10
          Montgomery County*                                                                           small employer (9 or less)

                                                                                   medium employer (10-50)

                                                                               large employer (51 or more)

$12.00

$12.00

$12.25

          Prince George’s County $11.50
Massachusetts* $12.00
Michigan $9.25
Minnesota*all cities except                      “small employers” (annual sales volume of less                                                                                                                                                        than $500,000)

“large employers” (annual sales volume of $500,000+)

$8.04
$9.86
          Minneapolis $11.25
Mississippi $7.25
Missouri* $8.60
Montana* $8.50
Nebraska $9.00
Nevada $8.25
New Hampshire $7.25
New Jersey* $8.85
New Mexico — all cities/counties except … $7.50
          Albuquerque*                                                                                         employer provides benefits $8.20

employer does NOT provide benefits

$9.20
          Las Cruces* $10.10
          Santa Fe $11.40
          Bernalillo County*                                                                              employer provides benefits $8.05
          unincorporated areas                                                      employer does NOT provide benefits $9.05
          Santa Fe County (unincorporated areas) $11.40
New York**  “Upstate” employers (excluding fast food employees) $11.10
“Downstate” employers (excluding fast food employees) $12.00
“Small” NYC employers (excluding fast food employees $13.50
“Large” NYC employers (excluding fast food employees) $15.00
Fast food employees outside NYC $12.75
Fast food employees inside NYC $15.00
North Carolina $7.25
North Dakota $7.25
Ohio* $8.55
Oklahoma $7.25
Oregon — all cities/counties except … $10.75
          Portland $12.00
          Nonurban Counties

          (Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klmath, Lake,           Malheur, Morrow, Sherman, Umatilla, Union, Wallowa Wheeler counties)

$10.50
Pennsylvania $7.25
Rhode Island* $10.50
South Carolina $7.25
South Dakota* $9.10
Tennessee $7.25
Texas $7.25
Utah $7.25
Vermont* $10.78
Virginia $7.25
Washington* all cities/counties except … $12.00
          City of SeaTac*                                                            hospitality and transportation workers $16.09
          Seattle* $15.00

small employer who does not pay towards medical benefits (500 or less)

small employer who does pay towards medical benefits (500 or less)

$12.00

large employer (501 or more)

$16.00
          Tacoma* $12.35
Washington DC $13.25
West Virginia $8.75
Wisconsin $7.25
Wyoming $7.25
* = increase in minimum wage effective January 1, 2019

** = increase in minimum wage effective December 31, 2018

 Caveat: Please be advised that this information  is being provided as a courtesy and that ePlace Solutions, Inc. does not track local laws and ordinances and will not update this information with changes in local laws and ordinances.

 

 

NEW LAW: Vermont’s Minimum Wage to Increase January 1, 2019

Vermont employers, mark your calendars: The Vermont Department of Labor recently announced that on January 1, 2019, Vermont’s minimum wage will increase from $10.50 to $10.78 per hour. The minimum wage rate for tipped employees of large employers will also increase from $5.25 to $5.39 per hour.

Under Vermont law, Vermont’s minimum wage rate increases annually every January 1 by either 5% or the percentage increase of the Consumer Price Index, CPI-U, U.S.: city average,
not seasonally adjusted, whichever is smaller.

It is recommended that all Vermont employers prepare for these increases and download the revised minimum wage poster for 2019.

NEW LAW: New Jersey’s Minimum Wage to Increase January 1, 2019

New Jersey employers, mark your calendars: The New Jersey Department of Labor and Workforce Development recently announced that on January 1, 2019, New Jersey’s minimum wage will increase from $8.60 to $8.85 per hour. The minimum wage rate for tipped employees will remain at 2.13 per hour.

It is recommended that all New Jersey employers prepare for these increases and download the new New Jersey minimum wage poster.

NEW LAW – Minnesota’s Minimum Wage to Increase January 1, 2019

Minnesota employers, mark your calendars.  The Minnesota Department of Labor and Industry recently announced that on January 1, 2018, Minnesota’s minimum wage will increase as follows:

  • Large Employers – minimum wage will increase from $9.65 to $9.86 per hour
  • Small Employers – minimum wage will increase from $7.87 to $8.04 per hour.

For purposes of Minnesota’s minimum wage, the following definitions apply

  • A large employer is an employer with an annual gross sales volume of $500,000 or greater,
  • A small employer is one with an annual gross sales volume of less than $500,000.

The training wage that may be paid to employees 20 years old or younger for their first 90 consecutive days of employment, the youth minimum wage for employees younger than 18 years old, and the “J visa” rates will also increase from $7.87 to $8.04 per hour.

It is recommended that all Minnesota employers prepare for these increases.

NEW LAW: Florida’s Minimum Wage to Increase January 1, 2019

Florida employers, mark your calendars: The Florida Department of Economic Opportunity recently announced that on January 1, 2019, Florida’s minimum wage will increase from $8.25 to $8.46 per hour. The minimum wage rate for tipped employees of large employers will also increase from $5.23 to $5.44 per hour.

It is recommended that all Florida employers prepare for these increases and download the revised minimum wage poster for 2019.  This poster is also available in Spanish and Kreyòl.

NEW LAW: Federal Contractor Minimum Wage to Increase in 2019

In a 2014 Executive Order (“Establishing A Minimum Wage for Contractors” Executive Order 13658), President Obama required the US Department of Labor to annually increase the minimum wage rate for federal contractors.

In compliance with that Order, the U.S. Labor Department has published the 2019 minimum wage rates for federal contractors.   Under the new regulations, the minimum wage rate for federal contractors will increase as follows:

  • January 1, 2019 — $10.60 per hour for hourly federal contractors
  • January 1, 2019 — $7.40 per hour for tipped workers performing on or in connection with a federal contract

These new minimum wage rates go into effect on January 1, 2019.   At that time, affected employers will also be required to post the updated E.O. 13658 Worker Rights poster.

It is recommended that companies who contract with the federal government review the hourly wage rate paid to their employees who perform work under those contracts and prepare to make any necessary adjustments.

NEW LAW: Michigan To Incrementally Increase Minimum Wage to $12.00 Per Hour

The Michigan Legislature recently adopted the Improved Workforce Opportunity Wage Act. This law, which was scheduled to be a ballot initiative (the Michigan Minimum wage Initiative) in the November 2018 election, will incrementally increase Michigan’s minimum wage up to $12.00 per hour in accordance with the following schedule:

  • When the law takes effect (~April 1, 2019*): $10.00 per hour
  • January 1, 2020: $10.65 per hour
  • January 1, 2021: $11.35 per hour
  • January 1, 2022: $12.00 per hour

Beginning in October 2022, the state treasurer will calculate an adjusted minimum wage rate, which will increase based on the rate of inflation and take effect on January 1st of the next year.

The new law also phases out the tip credit provided to employers of tipped employees by January 1, 2024 in accordance with the following schedule:

  • When the law takes effect (~April 1, 2019*): 48% of minimum wage ($4.80 per hour)
  • January 1, 2020: 60% of minimum wage ($6.39 per hour)
  • January 1, 2021: 70% of minimum wage ($7.95 per hour)
  • January 1, 2022: 80% of minimum wage ($9.60 per hour)
  • January 1, 2023: 90% of minimum wage ($10.80 per hour)**
  • January 1, 2024: Tip credit is eliminated

Continue reading NEW LAW: Michigan To Incrementally Increase Minimum Wage to $12.00 Per Hour

NEW LAW: Delaware’s Minimum Wage to Increase October 1, 2018

On July 1, 2018, Delaware Governor John Carney signed Senate Bill 170 and House Bill 483 into law.  These new laws will increase Delaware’s minimum wage to $10.25 per hour and will establish a training wage and youth wage.

Under the new law ( Senate Bill 170 ), Delaware’s minimum wage will increase in accordance with the following schedule:

  • October 1, 2018 increases to $8.75 per hour (the minimum wage for tipped employees remains $2.23 per hour)
  • October 1, 2019 increases to $9.25 per hour (the minimum wage for tipped employees remains $2.23 per hour)
  • October 1, 2020 increases to $9.75 per hour (the minimum wage for tipped employees remains $2.23 per hour)
  • October 1, 2021 increases to $10.25 per hour (the minimum wage for tipped employees remains $2.23 per hour)

In addition, starting January 1, 2019, Delaware  an employer will be allowed to pay 50 cents less than the minimum wage to:

  • Employees who are 18 years of age or older during the first 90 consecutive calendar days after they are initially employed by the employer; and
  • Employees who are under 18 years of age.

NOTE:  While  Senate Bill 170 states that the minimum wage is to increase on October 1, 2018, the synopsis of House Bill 483 indicates that minimum wage is increasing on January 1, 2019.  In light of this contradiction, it is recommended that Delaware employers plan for the increase to take place on October 1st until clarified by the state.

NEW LAW: Massachusetts to Increase Minimum Wage with Grand Bargain

On June 28, 2018, Massachusetts governor Charlie Baker signed House Bill 4640 (the so-called “Grand Bargain”) into law.  Among other things, this new law will increase Massachusetts’ minimum wage to $15.00 per hour and tipped employee minimum wage to $6.75 by January 1, 2023.

Under the new law, Massachusetts’ minimum wage will increase in accordance with the following schedule:

Date Minimum Wage Increase Tipped Employee Minimum Wage Increase
January 1, 2019 $12.00 $4.75
January 1, 2020 $12.75 $4.95
January 1, 2021 $13.50 $5.55
January 1, 2022 $14.50 $6.15
January 1, 2023 $15.00 $6.75

In addition to increasing the minimum wage, the new law also updates (and ultimately eliminates) Massachusetts’ blue laws, which currently require employers pay retail employees time-and-one-half for hours worked on Sundays and holidays.  This will be accomplished by decreasing the premium by 10% until it is eliminated in 2023.  The decrease is illustrated below:

Date Blue Law Premium Decrease
January 1, 2019 1.4 times employees regular rate of pay
January 1, 2020 1.3 times employees regular rate of pay
January 1, 2021 1.2 times employees regular rate of pay
January 1, 2022 1.1 times employees regular rate of pay
January 1, 2023 Blue Law Premium Eliminated

Take Home for Employers

Employers should start making preparations for this increase in minimum wage, as a failure to pay employees at least minimum wage can result in hefty penalties.

 

 

NEW CASE – Local Minimum Wages Prohibited in Florida

In a recent opinion (The City of Miami Beach, Florida vs. Florida Retail Federation, Inc.), the Third District Court of Appeal for Florida has held that Florida law prohibits Florida municipalities from passing a minimum wage that is higher than the state minimum wage.

Background

In June of 2016, the City of Miami Beach passed a wage ordinance that would increase the minimum wage within the city to more than $2 per hour ($10.31) above the state minimum wage effective January 1, 2018.  A lawsuit was filed by several industry groups in December of 2016 challenging the local minimum wage ordinance.

In March of 2017, the trial court found in favor of the industry groups and held that the local minimum wage was invalid because a 2003 state law (section 218.077 of the Florida Statutes which states ““a political subdivision may not establish, mandate, or otherwise require an employer to pay a minimum wage, other than a state or federal minimum wage.”) prohibits Florida municipalities from setting their own minimum wage rates.  The City appealed the trial court’s ruling to the Third District Court of Appeal for Florida.

The Case

The appellate court agreed with the trial court and found that (1) the City of Miami Beach’s local minimum wage ordinance was invalid and (2) Florida municipalities cannot establish their own local minimum wage.  The City plans to appeal the ruling to the Florida Supreme Court.

Take Home for Employers

At this point in time, the City of Miami Beach’s local ordinance is invalid and did not go into effect on January 1st.  However, it is recommended that Florida employers keep a close eye on the potential appeal to see if this position changes.