10 January 2019

State minimum wage increases for 2019

Though the federal minimum wage remains at $7.25 per hour, state minimum wage rates increased in a number of states effective on January 1, 2019 (dates of change other than January 1 are shown in the comments column). The increases can be the result of voter approval, law change or because the minimum wage is indexed for inflation each year.

Employers should be aware of differences in localities that independently set a minimum wage for employees working within their city or county limits (for example, several cities in California, such as Los Angeles). Although several states have passed laws preventing localities from imposing their own minimum wage (e.g., Missouri in mid-2017, to block St. Louis/Kansas City minimum wage increases), there remain states, such as California, that allow this practice.

The following chart details the states that have announced minimum wage increases for 2019.

State

2019

2018

Website

Comments

Alaska

$9.89

$9.84

http://labor.alaska.gov /lss/whhome.htm

 

Arizona

$11.00

$10.50

https://www.azica.gov/r esources/employers

 

Arkansas

$9.25

$8.50

https://www.labor.arka nsas.gov/minimum-wage-and-overtime

 

California

$11.00/$12.00

$10.50/$11.00

https://www.dir.ca.gov/ dlse/faq_minimumwage.htm

Employers of 25 or fewer employees may pay at the lower rate in effect (i.e., $11.00 for 2019). Several cities/counties have higher minimum wages.

Colorado

$11.10

$10.20

https://www.colorado.gov /pacific/cdle/minimumwage

 

Delaware

$8.75

$8.25

https://dia.delaw areworks.com/lab or-law/minimum-wage.php

Minimum wage will increase again on October 1, 2019 to $9.25.

District of Columbia

$14.00

$13.25

https://does.dc.gov/sites /default/files/dc/sites/d oes/page_content/attachm ents/Minimum%20Wage %20Amendment%20R evision%20Act%20Poster%20-%20Eng.pdf

Minimum wage change is effective July 1, 2019

Florida

$8.46

$8.25

http://www.florid ajobs.org/docs/default-source/business-growth-and-partnerships/for-employers/posters-and-required-notice s/2019-minimum-wage-poster/poster-fl_minwage2019.pdf?sfvrsn=2

 

Maine

$11.00

$10.00

http://www.maine.gov/labor/la bor_laws/minim um_wage_faq.html

Effective January 1, 2019, Maine's state minimum wage exceeds Portland's minimum wage, which will be recalculated as of July 1, 2019.

Massachusetts

$12.00

$11.00

https://www.ma ss.gov/guides/pay-and-recordkeeping#minimum-wage

 

Michigan

$9.45

$9.25

https://www.michigan. gov/lara/0,4601,7-154-59886 — ,00.html

The minimum wage increases to $9.45, effective March 29, 2019.

Minnesota

$9.86/$8.04

$9.65/$7.87

http://www.dli.mn .gov/business/employment-practices/minimum-wage-minnesota

Higher minimum wage applies to large employers with annual gross revenue of $500,000 or more

Missouri

$8.60

$7.85

https://labor.mo.gov/D LS/MinimumWage

State minimum wage does not apply to retail or service businesses with annual gross income less than $500,000

Montana

$8.50

$8.30

http://erd.dli.mt.gov/labor-standards/wage-and-hour-payment-act/state-minimum-wage

 

New Jersey

$8.85

$8.60

https://nj.gov/labor/wagehou r/content/emplo yer_faqs.html#q1

 

New York

$12.00/$11.10

$11.00/$10.40

https://labor.ny. gov/workerprotec tion/laborstandards /workprot/minwage.shtm

Higher minimum wage applies to Long Island & Westchester; higher minimum wage applies to NYC (not shown)

Ohio

$8.55

$8.30

https://www.co m.ohio.gov/docu ments/dico_2019Mini mumWageposter.pdf

Employers with annual gross receipts of less than $314,000 shall pay their employees no less than the current federal minimum wage rate ($7.25).

Oregon

$11.00/$11.25/$12.50

$10.50/$10.75/$12.00

http://www.oregon.gov/boli/ WHD/OMW/Pa ges/Minimum-Wage-Rate-Summary.aspx

Minimum wage change is effective July 1, 2019. Lowest minimum wage applies to nonurban counties; highest minimum wage applies to Portland.

Rhode Island

$10.50

$10.10

http://www.dlt.ri.go v/ls/minwage.htm

 

South Dakota

$9.10

$8.85

http://dlr.sd.gov/employment _laws/minimum_wage.aspx

 

Vermont

$10.78

$10.50

http://labor.vermon t.gov/wordpress/wp-content/uploads/Minimum-Wage-Poster.pdf

 

Washington

$12.00

$11.50

https://ww w.lni.wa.gov/Workpl aceRights/Wages /Minimum/default.asp

Seattle, Tacoma, and the City of SeaTac currently have higher minimum wage rates.

Note that different state minimum wage rates may apply to certain classes of employees, such as the tip credit for tipped employees and lower rates for youth employees. See each state's website for more information.

The U.S. Department of Labor maintains a database of the current state minimum wage rates on its website.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Advisory Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)

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ATTACHMENT

EY Payroll News Flash

Document ID: 2019-0086