Minimum Wage Increases in January 2018

By Susan Milner Parrott and Taylor M. Dewberry

As of January 1, 2018, minimum wage increases will affect employers in numerous states and localities. Under the federal Fair Labor Standards Act, the minimum wage for non-exempt employees remains at $7.25 per hour, but if a state or local law provides for higher minimum wage than the federal law requires, employers subject to that state or local law must pay the higher rate. North Carolina’s minimum wage remains $7.25 per hour.

The state minimum wage increases that are effective as of January 1, 2018 and the new minimum rate per hour are:

State	Rate Per Hour
Alaska	$9.84
Arizona	$10.50
California	$11.00[1]
Colorado	$10.20
Florida	$8.25
Hawaii	$10.10
Maine	$10.00
Michigan	$9.25
Minnesota	$9.65[2]
Missouri	$7.85
Montana	$8.30
New Jersey	$8.60
New York	$10.40[3]
Ohio	$8.30
Rhode Island	$10.10
South Dakota	$8.85
Vermont	$10.50
Washington	$11.50

Additionally, a number of localities across the country have implemented minimum wage rates higher than the federal minimum wage and at least two municipalities, San Francisco and Los Angeles, will implement further increases in July, 2018.

Employers should continue to be aware of wage rate changes and should monitor their pay practices in each of their locations to ensure compliance with all applicable wage and hour laws. Employers should also ensure that employees receive any required notices regarding a change in wage rate.

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[1] For employers with 26 or more employees; $10.50 per hour if fewer than 26 employers.

[2] For employers with annual gross revenue of greater than $500,000; $7.87 per hour for employers with less than $500,000 annual gross revenue.

[3] Some New York City rates and some New York county rates are higher.