The Federal Minimum wage under the Fair Labor Standards Act did not increase for 2018 (yet…) but for some cities, states, and counties, it did. The FLSA does not supersede any state or local laws that are more favorable to employees, therefore those state and local laws trump the Federal FLSA minimum wage of $7.25 per hour. Below are the changes that could effect your workforce and your compliance:
- Alaska: $9.84 an hour
- Albuquerque, New Mexico: $8.95 an hour
- Arizona: $10.50 an hour
- Bernalillo County, New Mexico: $8.85 an hour
- California: $11 an hour for businesses with 26 or more employees; $10.50 an hour for businesses with 25 or fewer employees
- Colorado: $10.20 an hour
- Cupertino, California: $13.50 an hour
- El Cerrito, California: $13.60 an hour
- Flagstaff, Arizona: $11 an hour
- Florida: $8.25 an hour
- Hawaii: $10.10 an hour
- Los Altos, California: $13.50 an hour
- Maine: $10 an hour
- Michigan: $9.25 an hour
- Milpitas, California: $12 an hour
- Minneapolis, Minnesota: $10 an hour for businesses with more than 100 employees
- Minnesota: $9.65 an hour for businesses with annual gross revenue of $500,000 or more; $7.87 an hour for businesses with annual gross revenue of less than $500,000
- Missouri: $7.85 an hour
- Montana: $8.30 an hour
- Mountain View, California: $15 an hour
- New Jersey: $8.60 an hour
- New York: $13 an hour for standard New York City businesses with 11 for more employees; $12 an hour for standard New York City businesses with 10 or fewer employees; $11 an hour for standard workers in Long Island and Westchester; $10.40 for standard workers in the rest of New York state; $13.50 for fast food workers in New York City; $11.75 for fast food workers in the rest of the state
- Oakland, California: $13.23 an hour
- Ohio: $8.30 an hour
- Palo Alto, California: $13.50 an hour
- Rhode Island: $10.10 an hour
- Richmond, California: $13.41 an hour
- San Jose, California: $13.50 an hour
- San Mateo, California: $13.50 an hour for standard businesses; $12 an hour for nonprofits
- Santa Clara, California: $13 an hour
- SeaTac, Washington: $15.64 an hour for hospitality and transportation employees
- Seattle, Washington: $15.45 an hour for businesses with 501 or more employees that don’t offer medical benefits; $15 an hour for businesses with 501 or more employees that do offer medical benefits; $14 an hour for businesses with 500 or fewer employees that don’t offer medical benefits; $11.50 an hour for businesses with 500 or fewer employees that do offer medical benefits
- South Dakota: $8.85 an hour
- Sunnyvale, California: $15 an hour
- Tacoma, Washington: $12 an hour
- Vermont: $10.50 an hour
- Washington state: $11.50 an hour
These new wages were effective either 12/31/17 or 1/1/18 – so if your employees worked hours during or after these dates – you will need to make the mandatory changes to be reflective in their pay. Several other localities have pending legislation for minimum wage changes, so watch for more increases over the next few years. Some states to watch for changes coming towards the end of 2018, 2019, and 2020 are: Arizona, Colorado, Maine, New York, Rhode Island, and Washington. Hiring a PEO like Solution Services is beneficial because we watch these changes closely before they happen, and make sure that all our clients are in compliance before the roll-out date. Call us today for a free discussion to see how WE can make a difference in your HR practices.
