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Minimum Wage Rate Changes at the State and Local Level to Take Effect in 2018

Wednesday December 27th 2017

Minimum Wage Rate Changes at the State and Local Level to Take Effect in 2018

It’s that time of year again. Employers must double-check to make sure they’re prepared for minimum wage rate changes that will take effect in 2018. There are a number of states and localities that raised their minimum wage rate for workers.

State Minimum Wage Rate Changes

Effective Jan. 1, 2018, the hourly minimum wage will increase in several states:

  • Alaska: $9.84 (from $9.80);
  • Florida $8.25 (from $8.10);
  • Minnesota: $9.65 (from $9.50);
  • Missouri $7.85 (from $7.70);
  • Montana $8.30 (from $8.15);
  • New Jersey $8.60 (from $8.44);
  • South Dakota: $8.85 (from $8.65).

Employers should watch for state minimum wage changes in mid-2018. Maryland’s statewide minimum wage increased to $9.25 on July 1, 2017 and will jump to $10.10 per hour on July 1, 2018.

Employers can also expect changes in Ohio, where the hourly minimum wage will increase to $8.30 (from $8.15) for nontipped employees on Jan. 1, 2018. The hourly minimum wage will apply to employees of businesses with annual gross receipts of $305,000 or more, up from receipts of $299,000 or more in 2017. The state’s hourly minimum wage is $7.25 for employees at companies with annual gross receipts of less than $305,000 after Jan. 1, 2018, and for 14- and 15-year-olds. For these employees, the state wage is tied to the federal hourly minimum wage of $7.25.

Local Minimum Wage Rate Changes

Several localities have minimum wage rate changes that will take effect on Jan. 1, 2018.
New York City businesses can expect changes effective Dec. 31, 2017, when the state’s hourly minimum wage is to increase to $13 for New York City employers of at least 11 employees; to $12 for New York City employers of fewer than 11 employees; and to $11 for Nassau, Suffolk and Westchester county employers. (The wage will also increase to $10.40 for employers in the rest of the state.)

Beginning in 2018, businesses in Montgomery County, Maryland will see annual increases in the minimum wage from its current $11.50 until it reaches $15 per hour. This increase differs for businesses based on how many employees they have. Businesses with 51 or more employees can expect a $15 minimum wage in 2021, while businesses with 11 to 50 workers will have until 2023 to begin paying $15 per hour. Finally, businesses with 10 or fewer employees will have until 2024 to start paying workers $15 per hour.

 

Minneapolis will also raise its minimum wage to $15 per hour in 2018 after a state court judge denied a business group’s request for a temporary injunction to halt the increase. Employers with more than 100 workers are required to increase the minimum wage to $10 per hour on Jan. 1, 2018, and then to $11.25 per hour on July 1, 2018. Wages would then rise one dollar per year, reaching $15 per hour by July 1, 2022. The city is giving small businesses more time to comply with the new wage rules, but they must begin paying the $15 per hour by July 1, 2024.

One city where employers will not have to increase the minimum wage is Miami Beach, Florida. The city enacted an ordinance June 8, 2016, that was to increase the city’s hourly minimum wage for private employers to $10.31 in 2018 and annually increase the minimum wage by $1 an hour until it reached $13.31 by 2021. But a Florida court struck down the ordinance in March of this year and, following an appeal from Miami Beach officials, the decision was upheld and blocked on Dec. 13 by a Florida appeals court. As a result, the minimum wage in Miami Beach must conform to the state’s wage rate, which will be $8.25 (up from $8.10) on Jan. 1, 2018.

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