2019 Minimum Wage Rate Increases: The List Grows
While the federal minimum wage has remained stalled at $7.25 an hour since 2009, there has been significant movement at the state level, with some states enacting a minimum wage rate that is now more than double the federal level.
Seattle is currently the leader for 2019, increasing its minimum wage to $16.00 per hour beginning in January for large employers (those with more than 500 employees). New York is close behind, increasing the minimum wage to $15.00 per hour for large employers located in New York City, though the state minimum will be $11.10 in 2019.
Many minimum wage increases scheduled for next year stem from statutes passed in 2016 or earlier that included pre-determined annual “stepped” increases or potential annual increases based on a particular consumer price index (CPI). But several new states that enacted increases this year (i.e., Delaware, Massachusetts, Arkansas, and Missouri) joined the club as a result of successful voter initiatives.
The majority of the upcoming minimum wage increases will go into effect on January 1 of next year (or the day before in New York). Others, including many municipal increases, will take effect on July 1, 2019.
Furthermore, the minimum wage for “tipped” employees, where allowed, is not reflected in this update, nor are the “living wage” ordinances passed by some municipalities and applicable only to that local government’s employees, contractors, program beneficiaries, and the like.
Minimum wage increases effective January 1, 2019 (December 31, 2018, for New York):
| Jurisdiction | Rate | Increase |
|---|---|---|
| Alaska | ||
| Statewide | $9.89 | $0.05 |
| Arizona | ||
| Statewide | $11.00 | $0.50 |
| Flagstaff | $12.00 | $1.00 |
| Arkansas | ||
| Statewide | $9.25 | $0.75 |
| California* | ||
| Statewide | ||
| 26+ employees | $12.00 | $1.00 |
| ≤25 employees | $11.00 | $0.50 |
| Delaware | ||
| Statewide | $8.75 | $0.50 |
| Florida | ||
| Statewide | $8.46 | $0.21 |
| Maine | ||
| Statewide | $11.00 | $1.00 |
| Massachusetts | ||
| Statewide | $12.00 | $1.00 |
| Minnesota | ||
| Statewide | ||
| $500K+ revenue | $9.86 | $0.21 |
| <$500K revenue | $8.04 | $0.17 |
| Missouri | ||
| Statewide | $8.60 | $0.75 |
| Montana | ||
| Statewide | $8.50 | $0.20 |
| New Jersey | ||
| Statewide | $8.85 | $0.25 |
| New Mexico | ||
| Albuquerque | $9.20 | $0.25 |
| If employer pays at least $2,500 annually toward healthcare or childcare | $8.20 | |
| Bernalillo County | $9.05 | $0.20 |
| Las Cruces | $10.10 | $0.65 |
| New York | ||
| Statewide | $11.10 | $0.70 |
| $12.75 (fast food workers) | $1.00 | |
| Nassau/Suffolk/Westchester Counties | $12.00 | $1.00 |
| $12.75 (fast food workers) | $1.00 | |
| NYC (>10 employees) | $15.00 | $2.00 |
| $15.00 (fast food workers) | $1.25 | |
| NYC (≤10 employees) | $13.50 | $1.50 |
| $15.00 (fast food workers) | $1.50 | |
| Ohio | ||
| Statewide | $8.55 | $0.25 |
| $7.25 (gross sales <$314K) | ||
| Rhode Island | ||
| Statewide (most employees) | $10.50 | $0.40 |
| South Dakota | ||
| Statewide | $9.10 | $0.25 |
| Vermont | ||
| Statewide | $10.78 | $0.28 |
| Washington | ||
| Statewide | $12.00 | $0.50 |
| Seattle** | ||
| 500+ employees in U.S. | $16.00 | $1.00 |
| <500 employees in U.S. | $12.00 | $0.50 |
| SeaTac (hospitality & transportation workers) | $16.09 | $0.45 |
| Tacoma | $12.35 | $0.35 |
Minimum wage increases effective July 1, 2019 (unless otherwise stated):
[Note: Some jurisdictions base their minimum wage increase, if any, on a year-end consumer price index and, therefore, have not yet determined the 2019 rate(s).]
| Jurisdiction | Rate | Increase |
|---|---|---|
| Delaware | ||
| Statewide (Oct. 1) | $9.25 | $0.50 |
| District of Columbia | ||
| District-wide | $14.00 | $0.75 |
| Illinois | ||
| Chicago | $13.00 | $1.00 |
| Maryland | ||
| Montgomery County | $13.00 (51+ employees) | $0.75 |
| $12.50 (11-50 employees) | $0.50 | |
| $12.50 (≤10 employees) | $0.50 | |
| Minnesota | ||
| Minneapolis | $12.25 (101+ employees) | $1.00 |
| $11.00 (≤100 employees) | $0.75 | |
| Oregon | ||
| “Non-Urban” Counties | $11.00 | $0.50 |
| Portland Metro | $12.50 | $0.50 |
| All Other Counties | $11.25 | $0.50 |
*California has approximately 20 different city, county, or other local hourly minimum wage rates, many of which are now at $15.00 or more. For further information, please consult the Jackson Lewis workthruIT® app or any Jackson Lewis attorney.
**For “Schedule 2” employers (<500 employees) in Seattle, the minimum hourly wage will be $12.00, but the minimum hourly compensation will be $15.00. The additional $3.00 may be based on wages, tips, bonuses, commissions, or medical benefits contributions.
Jackson Lewis is available to assist employers in achieving compliance with these and other workplace requirements.
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