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Minimum wage to rise in 18 states in 2018

The new year brings labor cost increases

Lisa Jennings, Executive Editor

December 22, 2017

3 Min Read
wediditcalifornia.jpg
Service Employees International Union members celebrate after Gov. Jerry Brown signed landmark legislation earlier this year making California the first state in the nation to commit to raising the minimum wage to $15 per hour statewide.David McNew/stringer/Getty Images News

Another new year brings another round of minimum wage hikes in 18 states.

The federal minimum wage remains at $7.25 per hour, with a tipped wage in some states at $2.13 per hour. But many states are taking action with wage hikes scheduled to go into effect on Dec. 31 or Jan. 1, 2018.

In 10 states, the increases are part of a phased-in transition to reach a certain level, eventually $15 per hour in states like New York and California.

Another eight states will see annual cost-of-living index adjustments, including Alaska, Florida, Minnesota, Missouri, Montana, New Jersey, Ohio and South Dakota.

Additionally, in Washington, D.C., and Oregon, wage hikes are scheduled to go into effect in July, rather than Jan. 1, 2018. In the District of Columbia, the minimum wage of $12.50 per hour will increase to $13.25 per hour, and in Oregon the standard rate of $10.25 increases to $10.75 on July 1, although wage rates are higher for employers in the Portland area.

Another 20 cities and counties across the country will also raise minimum wages on the first of the year, and more wage hikes are coming. Campaigns are underway to raise the minimum wage floor in at least 17 more states and cities, including Massachusetts, New Jersey, Vermont, Illinois, Missouri, Michigan and Nevada, according to the National Employment Law Project.

Here’s a look at where the minimum wage will go up in 2018. Except where noted, all of these increases take effect on Jan. 1, 2018:

Arizona: The current hourly minimum wage of $10 increases to $10.50 per hour. The rate is scheduled to go up by another 50 cents in 2019, reaching $12 per hour by 2020. In 2021, cost-of-living indexing will begin.

California: The current rate of $10.50 per hour increases to $11 per hour, and is on track to reach $15 by 2022. Small businesses with 25 or fewer employees will have an extra year to comply, reaching $15 in 2023. Once the rate hits $15, cost-of-living increases kick in.

Colorado: The current rate of $9.30 per hour increases to $10.20 per hour, with future increases to $11.10 in 2019, then to $12 in 2020, with indexing starting in 2021.

Hawaii: The rate of $9.25 per hour increases to $10.10 per hour.

Maine: The $9 per hour wage increases to $10 per hour, with future increases to $11 in 2019, $12 in 2020 and indexing in 2021.

Michigan: The $8.90 per hour wage increases to $9.25, and indexing begins in 2019.

New York: The minimum wage of $9.70 per hour for most of the state increases to $10.40 per hour on Dec. 31, with continued increases scheduled until reaching $12.50 in 2020. At that point, increases will be based on cost of living to get the wage to $15 per hour.

In New York City, the minimum wage for employers of 11 or more people increases to $13 per hour on Dec. 31, and $12 per hour for smaller businesses. The rate increases for smaller businesses annually to reach $15 in 2019. On Long Island and in Westchester, the rate increases to $11 on Dec. 31.

Rhode Island: The current rate of $9.60 per hour increases to $10.10, with future increase to $10.50 per hour in 2019.

Vermont: The $10 per hour minimum wage increases to $10.50 per hour, with additional indexing beginning in 2019.

Washington state: The current $11 per hour wage increases to $11.50, with future increases to $12 in 2019, and $13.50 in 2020, with indexing beginning in 2021.

Sources: U.S. Department of Labor/National Conference of State Legislatures, Business for a Fair Minimum Wage

Contact Lisa Jennings at [email protected]

Follow her on Twitter: @livetodineout

About the Author

Lisa Jennings

Executive Editor, Nation's Restaurant News and Restaurant Hospitality

Lisa Jennings is executive editor of Nation’s Restaurant News and Restaurant Hospitality. She joined the NRN staff as West Coast editor in 2004 as a veteran journalist. Before joining NRN, she spent 11 years at The Commercial Appeal, the daily newspaper in Memphis, Tenn., most recently as editor of the Food and Health & Wellness sections. Prior experience includes staff reporting for the Washington Business Journal and United Press International.

Lisa’s areas of expertise include coverage of both large public restaurant chains and small independents, the regulatory and legal landscapes impacting the industry overall, as well as helping operators find solutions to run their business better.

Lisa Jennings’ experience:

Executive editor, NRN (March 2020 to present)

Executive editor, Restaurant Hospitality (January 2018 to present)

Senior editor, NRN (September 2004 to March 2020)

Reporter/editor, The Commercial Appeal (1990-2001)

Reporter, Washington Business Journal (1985-1987)

Contact Lisa Jennings at:

[email protected]

@livetodineout

https://www.linkedin.com/in/lisa-jennings-83202510/

 

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