2018 Minimum Wage Rates
(State, City, And County)
Is your organization prepared for the new minimum wage limits for 2018?
If not, please note under federal law employers must pay non-exempt employees a minimum wage of at least $7.25 per hour. However, many jurisdictions have higher minimum wage rates, some of which will increase at the start of 2018 (see chart below).
New Minimum Rates (Effective January 1, 2018)
|
Alaska
|
$9.84
|
|
Arizona
|
$10.50
|
|
California
|
$11.00
|
|
Colorado
|
$10.20
|
|
Florida
|
$8.25
|
|
Maine
|
$10.00
|
|
Minnesota
|
$9.65**
|
|
Missouri
Montana
|
TBD
$8.30
|
|
New Jersey
|
$8.60
|
|
New York*
|
$10.40**
|
|
Ohio
|
$8.30
|
|
Rhode Island
|
$10.10
|
|
South Dakota
|
$8.85
|
|
Washington
|
$11.50
|
|
Federal Contractor
|
$10.35
|
|
City/County
|
|
|
Albuquerque NM
|
$8.95**
|
|
Bernalillo Co. NM
|
$8.85**
|
|
Cupertino CA
|
$13.50
|
|
El Cerrito CA
|
$13.60
|
|
Flagstaff AZ
|
$11.00
|
|
Los Altos CA
|
$13.50
|
|
Milpitas CA
|
$12.00
|
|
Minneapolis MN
|
$10.00**
|
|
Mountain View CA
|
$15.00
|
|
Oakland CA
|
TBD
|
|
Palo Alto CA
|
$13.50
|
|
Richmond CA
|
$13.41
|
|
San Jose CA
|
$13.50
|
|
San Mateo CA
|
$13.50**
|
|
Santa Clara CA
|
$13.00
|
|
Seattle WA
|
$15.00**
|
|
Sunnyvale CA
|
$15.00
|
|
Tacoma WA
|
$12.00
|
|
* Effective 12/31/2017
|
|
|
** Varies based on specific criteria.
|
City/County Details:
- Albuquerque, NM: $8.95 per hour ($7.95 if the employer provides healthcare and/or childcare benefits to the employee equal to or in excess of $2,500 per year).
- California: For employers with 26 or more employees, $11 per hour. For employers with 25 or fewer employees, $10.50 per hour.
- San Jose, CA: $13.50 per hour.
- Oakland, CA: The city adjusts its minimum wage annually for inflation but hasn’t yet announced its minimum wage for 2018. An announcement is expected later this month or in early December.
- Minnesota: $9.65 per hour for large employers (annual gross revenue of $500,000 or more) and $7.87 an hour for smaller employers (annual gross revenue of less than $500,000).
- Minneapolis, MN: For employers with more than 100 employees, $10.00 per hour.
- Missouri: The state adjusts its minimum wage annually for inflation but hasn’t yet announced its minimum wage for 2018. An announcement is expected later this month.
- New York (effective December 31, 2017):
- New York City: $13.00 per hour for employers with 11 or more employees and $12.00 per hour for smaller employers; $13.50 per hour for fast food workers in the city
- Nassau, Suffolk and Westchester Counties: $11.00 per hour
- Rest of the state: $10.40 per hour
- Washington State: $11.50 per hour
- Seattle, WA: $14.00 per hour for employers with 500 or fewer employees. Employers can satisfy this requirement through a combination of direct cash wages (of at least $11.50 per hour), tips, and medical benefits. Larger employers must pay employees $15.45 per hour. Employers can satisfy this requirement through a combination of direct cash wages (of at least $15.00 per hour) and medical benefits.
- Tacoma, WA: $12.00 per hour.
Several smaller cities have planned increases for 2018; therefore, check your local minimum wage laws to ensure 100% compliance.
Potential Impact On Overtime Exemptions:
- In some states, an increase in the minimum wage can also affect minimum salary requirements for exempt employees, e.g., California and Alaska require employers to pay a salary of at least twice the minimum wage to bona fide administrative, professional, and executive employees.
- In Alaska, the minimum salary required for these exemptions under state law will increase to $787.20 per week on January 1, 2018.
- In California, employers with 26 or more employees must pay a salary of at least $880 per week for these exemptions beginning January 1, 2018. California employers with fewer than 26 employees must pay a minimum salary of at least $840 for these exemptions.
Note: State and federal law require that certain duties tests also be satisfied to qualify for exemption from overtime.
If you have any question on the new minimum payroll rate please feel free to contact us!