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Many States Have New Minimum Wage Rate in 2018

By Mikyia S. Aaron, Thomas P. Brady / Jan 04, 2018

Beginning January 1, 2018, a number of states increased their minimum wage.  While the federal minimum wage rate for nonexempt employees has remained $7.25 an hour since July 2009, many states have enacted statutes providing for minimum wage rates that are higher than the federal rate.  Where the state minimum wage rate is higher than the federal rate, employers are required to comply with the higher standard. 

The states that have minimum wage increases in 2018 are as follows:

  • Alaska’s minimum wage increases to $9.84 an hour;
  • Arizona’s minimum wage increases to $10.50 an hour;
  • California’s minimum wage increases to $11.00 an hour for employers with 26 or more employees;
  • Colorado’s minimum wage increases to $10.20 an hour;
  • Florida’s minimum wage increases to $8.25 an hour;
  • Hawaii’s minimum wage increases to $10.10 an hour;
  • Maine’s minimum wage increases to $10.00 an hour;
  • Michigan’s minimum wage increases to $9.25 an hour;
  • Minnesota’s minimum wage increases to $9.65 for employers with more than $500,000 in revenue or $7.87 for employers with less than $500,000 in revenue;  
  • Montana’s minimum wage increases to $8.30 an hour;
  • New Jersey’s minimum wage increase to $8.60 an hour;
  • New York’s minimum wage  increases to $10.40;
  • Rhode Island’s minimum wage increases to $10.10 an hour;
  • South Dakota’s minimum wage increases to $8.85 an hour
  • Vermont’s minimum wage increases to $10.50 an hour; and
  • Washington’s minimum wage increases to $11.50 an hour.

Employers should be aware that some cities and municipalities have enacted their own minimum wage rates, which may be higher than the above.  Employers must pay the higher minimum wage rate in these jurisdictions.  

If you have any questions about employer obligations regarding federal or state wage laws, please contact Thomas P. Brady (313) 965-8291 or tbrady@clarkhill.com or Mikyia S. Aaron (313) 965-8528 or maaron@clarkhill.com, or another member of Clark Hill’s Labor and Employment Practice Group.