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CURRENT AND FUTURE STATE WAGE RATES FOR STATE MINIMUM WAGE AND TIPPED EMPLOYEES

December 2018

2019 State Minimum and Tipped Wage Rates Current rate and planned increases (Unless otherwise noted) States and localities in BOLD represent rates above the federal minimum wage. *Official wage rates unannounced - these are estimates

STATE/ TIPPED MINIMUM EFFECTIVE NOTES LOCALITY WAGE WAGE DATES $2.13 $7.25 Current Alabama has no state minimum wage law; federal law applies.

Alaska $9.84 $9.84 Current Future increases will be indexed. $9.89 $9.89 1/1/2019 $7.50 $10.50 Current In November 2016, Arizona voters approved a $8.00 $11.00 1/1/2019 ballot initiative that would take the state’s wage to $12 by 2020. Annual Indexing will return in 2021. $9.00 $12.00 1/1/2020 Arizona’s tip credit is $3.00. $2.63 $8.50 Current Arkansas’s cash wage is frozen at $2.63. In November $2.63 $9.25 1/1/2019 2018, voters approved a series of annual minimum wage $2.63 $10.00 1/1/2020 increases with the wage reaching $11.00 by 2021. $2.63 $11.00 1/1/2021 $11.00 $11.00 Current $12.00 $12.00 1/1/2019 California allows no tip credit. Businesses with 25 or fewer employees will have an extra year to $13.00 $13.00 1/1/2020 comply. The wage will be indexed to inflation starting $14.00 $14.00 1/1/2021 1/1/2023. $15.00 $15.00 1/1/2022 $7.18 $10.20 Current In November 2017, Colorado’s voters approved a $8.08 $11.10 1/1/2019 ballot initiative that will take the state’s wage to $8.98 $12.00 1/1/2020 $12 by 2020. Annual indexing will return in 2021. Colorado’s tip credit is $3.02. $6.38 $10.10 Current Connecticut’s minimum wage reached $10.10 on January 1, 2017 after a previous increase to $9.60. The base wage for bartenders is $8.23 $2.23 $8.25 Current $2.23 $8.75 1/1/2019 Delaware’s tipped wage is frozen at $2.23. $2.23 $9.25 10/1/2019 $5.23 $8.25 Current Florida’s tip credit is $3.02. Annual minimum wage $5.44 $8.46 1/1/2019 increases based on the annual percentage change in the CPI-W for the South census region. $2.13 $7.25 Current Georgia’s minimum wage law excludes employees covered by the Fair Labor Standard Act (FLSA); federal law on cash and tipped wage applies. $9.35 $10.10 Current To take a tip credit, the combined amount the employee receives from the employer and tips must be at least $7.00 more than the applicable minimum wage. $3.35 $7.25 Current Idaho’s cash wage is frozen at $3.35. $4.95 $8.25 Illinois’ tip credit cannot exceed 40% of the applicable Current minimum wage.

While we believe this to be an accurate interpretation of state labor laws, this information should not be taken as legal advice, nor should it be a substitute for the independent advice of counsel. In cases involving local wage and hour laws, we suggest employers seek out local counsel. Prepared for the Employment Policies Institute. Revised December 2018. 2019 State Minimum and Tipped Wage Rates, Continued Current rate and planned increases (Unless otherwise noted) States and localities in BOLD represent rates above the federal minimum wage.

STATE/ TIPPED MINIMUM EFFECTIVE NOTES LOCALITY WAGE WAGE DATES $2.13 $7.25 Current Indiana’s minimum wage law excludes FLSA employees; federal law on cash/tipped wage applies. $4.35 $7.25 Current Iowa’s tip credit is 40% of the applicable minimum wage. $2.13 $7.25 Current Kansas’s minimum wage law excludes FLSA employees; federal law on cash/tipped wage applies. $2.13 $7.25 Current Federal cash/tipped wage law applies in Kentucky. $2.13 $7.25 Current Louisiana has no state minimum wage law. $5.00 $10.00 Current In November, Maine’s voters approved a ballot initiative $5.50 $11.00 1/1/2019 that would take the state’s wage to $12 by 2020. In 2021, the minimum wage will be indexed by inflation. $6.00 $12.00 1/1/2020 The legislature recently reinstated a tip credit which may not exceed 50% of the minimum hourly wage. $3.63 $10.10 Current Maryland’s tipped wage is frozen at $3.63. $3.75 $11.00 Current $4.35 $12.00 1/1/2019 In June, Massachusetts enacted a series of annual $4.95 $12.75 1/1/2020 minimum wage increases. The state’s minimum $5.55 $13.50 1/1/2021 wage will reach $15 an hour by 2023. Future annual $6.15 $14.25 1/1/2022 increases will be indexed for inflation. $6.25 $15.00 1/1/2023 $3.52 $9.25 Current $3.59 $9.45 1/1/2019 $3.67 $9.65 1/1/2020 $3.75 $9.87 1/1/2021 $3.84 $10.10 1/1/2022 Minimum wage increase does not take effect if $3.93 $10.33 1/1/2023 Michigan’s unemployment rate is 8.5% or greater. Michigan’s tipped wage is 38% of the applicable $4.01 $10.56 1/1/2024 minimum wage. These wage rates may be subject $4.10 $10.80 1/1/2025 to future legal challenges. We will update this sheet $4.20 $11.04 1/1/2026 accordingly. $4.29 $11.29 1/1/2027 $4.39 $11.54 1/1/2028 $4.48 $11.79 1/1/2029 $4.58 $12.05 1/1/2030 $9.65 $9.65 Current Minnesota allows no tip credit. Beginning 1/1/2019, $9.86 $9.86 1/1/2019 the minimum wage will be indexed to inflation. (These rates are for large employers.) $2.13 $7.25 Current Mississippi has no state minimum wage law. $3.925 $7.85 Current $4.30 $8.60 1/1/2019 In November 2018, voters approved a series of annual $4.725 $9.45 1/1/2020 minimum wage increases. The minimum wage will $5.15 $10.30 1/1/2021 reach $12.00 by 2023. Missouri’s tipped wage is half $5.575 $11.15 1/1/2022 its statewide minimum wage. $6.00 $12.00 1/1/2023

Montana $8.30 $8.30 Current is an indexed state with no tip credit. $8.50 $8.50 1/1/2019 $2.13 $9.00 Current Nebraska’s tipped wage is frozen at $2.13. 2019 State and Local Minimum and Tipped Wage Rates Current rate and planned increases (Unless otherwise noted) States and localities in BOLD represent rates above the federal minimum wage.

STATE/ TIPPED MINIMUM EFFECTIVE LOCALITY WAGE WAGE DATES NOTES $8.25 $8.25 Current The wage that will go into effect on 7/1/2019 will not be released until spring. According to Nevada’s Office of the Labor Commissioner, the adjustment of the indexed wage is based on changes at the federal level and the cumulative increase in the cost of living, which explains why the wage has not increased since July 2010. (In any given year, the new minimum wage could not increase by more than 3%.) Employers covered by the FLSA can pay employees $7.25 per hour if health benefits are provided. Nevada does not allow a tip credit. $3.26 $7.25 Current New Hampshire’s cash wage cannot be less than 45% of the applicable minimum wage. New Hampshire has no state minimum wage law, federal law applies. $2.13 $8.60 Current New Jersey does not have a statute regulating tips, so $2.13 $8.85 1/1/2019 the federal tip law applies. New Jersey is an indexed state. $2.13 $7.50 Current New Mexico’s cash wage is frozen at $2.13, but the cash wage plus tips must equal the applicable minimum wage in order for the reduced wage to be paid. Greater New $7.50 $10.40 Current This is the wage rate in effect for greater $7.50 $11.10 12/31/2018 State. On 12/31/2018, large employers in New York York State City must pay $15 an hour with a $10 tipped wage, $7.85 $11.80 12/31/2019 and employers in Long Island and Westchester must $8.35 $12.50 12/31/2020 pay $12 an hour with an $8 tipped wage. Quick service employees are paid on a different wage scale. (See next entry.)

New York State $11.75 Current This is the wage rate in effect for so-called “fast food” Quick Service $12.75 12/31/2018 employees in New York State, according to the State Employees $13.75 12/31/2019 Department of Labor. A different rate applies in New $14.50 12/31/2020 York City. (See below.) $15.00 7/1/2021 $2.13 $7.25 Current North Carolina’s tipped wage is set at the federal amount of $2.13. $4.86 $7.25 Current North Dakota’s tip credit is 33% of the applicable minimum wage. $4.15 $8.30 Current Ohio's tip credit is 50% of the applicable minimum $4.30 $8.55 1/1/2019 wage. Annual increases based on chance in the CPI-W U.S., city average, rounded to the nearest 5 cents. $2.13 $7.25 Current Oklahoma’s minimum wage law excludes FLSA employees; federal law on cash/tipped wage applies. $10.75 $10.75 Current In 2016, Oregon passed a three-tiered wage hike. The $11.25 $11.25 7/1/2019 wage represented is the "standard" wage. Employers $12.00 $12.00 7/1/2020 in the Portland Metro area started paying $1.00 over $12.75 $12.75 7/1/2021 the minimum wage on 7/1/2017, while those in the "non urban" counties will pay 25 cents less than the $13.50 $13.50 7/1/2022 standard. Oregon has no tip credit. The minimum wage is adjusted annually to account for inflation. $2.83 $7.25 Current Pennsylvania’s tipped wage is frozen at $2.83. $3.89 $10.10 Current Rhode Island’s definition of tipped employees $3.89 $10.50 1/1/2019 includes bussers. $2.13 $7.25 Current South Carolina has no state minimum wage law; federal law applies. $4.33 $8.85 Current South Dakota’s tip credit is 50% the minimum wage. $4.55 $9.10 1/1/2019 Annual increases based on the percentage change in the CPI, rounded to the nearest 5 cents. $2.13 $7.25 Tennessee has no state minimum wage law; federal law Current applies. 2019 State and Local Minimum and Tipped Wage Rates Current rate and planned increases (Unless otherwise noted) States and localities in BOLD represent rates above the federal minimum wage.

STATE/ TIPPED MINIMUM EFFECTIVE NOTES LOCALITY WAGE WAGE DATES $2.13 $7.25 Texas’s minimum wage law excludes FLSA employees; Current federal law on tipped wage applies. $2.13 $7.25 Current Utah requires a cash wage higher than the Federal requirement, but the higher wage does not apply to employers covered by the FLSA. $5.25 $10.50 Current Vermont will return to the practice of indexing the $5.39 $10.78 1/1/2019 minimum wage to inflation beginning in 2019. Vermont’s indexing rate is capped at 5%. $2.13 $7.25 Current Virginia’s minimum wage law excludes FLSA employees; federal law on cash/tipped wage applies. $11.50 $11.50 Current In November, Washington voters approved a ballot $12.00 $12.00 1/1/2019 initiative that would take the state’s wage to $13.50 $13.50 $13.50 1/1/2020 by 2020. Annual indexing will return in 2021. Washington allows no tip credit. $2.62 $8.75 Current West Virginia’s 2014 wage law removed an exemption for employees covered by the FLSA and adjusted the state’s tip credit. West Virginia allows a 70% tip credit, provided employers can document the employee is receiving at least 70% the minimum wage in gratuities/ credits. $2.33 $7.25 Current Wisconsin’s cash wage is frozen at $2.33. $2.13 $7.25 Current Wyoming has no law on tipped wage; federal law applies. Alameda, $11.00 $11.00 Current California $13.50 $13.50 7/1/2019 Starting in 2022, the wage will be indexed to inflation. $15.00 $15.00 7/1/2020 Albuquerque, $5.35 $8.95 Current Albuquerque’s tipped wage is 60% of the minimum New Mexico $5.50 $9.20 1/1/2019 wage. State law requires that the cash wage and tips must equal the applicable minimum wage in order for the reduced wage to be paid. Belmont, $12.50 $12.50 Current California $13.50 $13.50 1/1/2019 Beginning 1/1/2022, the wage will be indexed to $15.00 $15.00 1/1/2020 inflation. $15.90 $15.90 1/1/2021 Berkeley, $15.00 $15.00 Current The Berkeley City Council voted to raise the city’s California minimum wage to $13.75 in October of 2016. Beginning on July 1, 2019, and thereafter on the 1st of July of each year, the minimum wage shall increase by an amount corresponding to the prior calendar year’s increase, if any, in the Consumer Price Index for urban wage earners and clerical workers. Bernalillo $2.13 $8.85 Current State law requires that the cash wage and tips must County, $2.13 $9.05 1/1/2019 equal the applicable minimum wage in order for the New Mexico reduced wage to be paid. Chicago, $6.25 $12.00 Current On 7/1/2017, Chicago’s tipped wage became indexed Illinois TBD $13.00 7/1/2019 to inflation (capped at 2.5%). Beginning 7/1/2020, the city’s minimum wage will also be indexed to inflation. In years when the unemployment rate exceeds 8.5%, the city’s minimum wage would be frozen. The wage will be available on 6/1 of the year the new wage is going into effect. Cook County, $5.10 $11.00 Current The minimum wage increased from $8.25 to $10 per Illinois TBD $12.00 7/1/2019 hour on July 1, 2017. It will subsequently increase $1 per year until reaching $13 an hour in 2020. Future TBD $13.00 7/1/2020 annual increases will be tied to the rate of inflation, not to exceed 2.5%. Cupertino, $13.50 $13.50 Current California $15.00 $15.00 1/1/2019 After 2020, minimum wages are estimates based $15.35* $15.35* 1/1/2020 on the historical CPI-W in Bay Area Statistical Area of $15.65* $15.65* 1/1/2021 2.2%. Estimates provided by city. $16.00* $16.00* 1/1/2022 2019 State and Local Minimum and Tipped Wage Rates Current rate and planned increases (Unless otherwise noted) States and localities in BOLD represent rates above the federal minimum wage.

STATE/ TIPPED MINIMUM EFFECTIVE LOCALITY WAGE WAGE DATES NOTES El Cerrito, $13.60 $13.60 Current El Cerrito passed legislation to increase the local California $15.00 $15.00 1/1/2019 minimum wage to $11.60 on 7/1/2016 and is implementing future increases as described. Beginning 1/1/2020, and each year thereafter, the wage will increase based on changes in the local CPI. Emeryville, $15.69 $15.69 Current Emeryville’s wage rates will increase annually, with California $16.00* $16.00* 7/1/2019 Large Business (56+) minimum wage rates adjusted for inflation every July 1 based on the annual increase $16.42* $16.42* 7/1/2020 in the local CPI (Urban and Clerical Workers/San Francisco-Oakland-San Jose Area). Small Business (55 or fewer) minimum wage rates will increase in increments until 2019, at which point the Small Business minimum wage rate will match the Large Business minimum wage rate and both will be increased every July 1 by the local CPI. The city estimates an annual CPI of 2.63% (which has been close to the annual average over the last five years). Flagstaff, $8.00 $11.00 Current Indexed to inflation effective January 1, 2023 and Arizona $9.00 $12.00 1/1/2019 rounded to the nearest $0.05. Tipped minimum wage $10.00 $13.00 1/1/2020 will be incrementally increased as follows: $2 less $12.00 $15.00 1/1/2021 than the minimum wage effective January 1, 2023, $13.00 $15.50 1/1/2022 $1.50 less than the minimum wage effective January 1, 2024, $1 less than the minimum wage effective TBD TBD 1/1/2023 January 1, 2025. Effective January 1, 2026, the tipped minimum wage will not be less than the set minimum wage. Las Cruces, $3.68 $9.20 Current Las Cruces allows a cash wage for tipped employees New Mexico $4.04 $10.10 1/1/2019 of 40% of the applicable minimum wage. The minimum wage will be indexed to inflation beginning in 2020 Los Angeles $13.25 $13.25 Current Los Angeles County passed an identical ordinance to County, $14.25 $14.25 7/1/2019 the city of Los Angeles as stated below. California $15.00 $15.00 7/1/2020 Los Angeles, $13.25 $13.25 Current Rates apply to employers with 26 or more employees. California $14.25 $14.25 7/1/2019 (Smaller businesses have an additional year to raise the wage rates in the same increments.) The state $15.00 $15.00 7/1/2020 does not allow a tip credit. Beginning 7/1/2022, the city will index the minimum wage to inflation. Rates will be announced on January 1 of each year. Los Altos, $13.50 $13.50 Current Los Altos’ minimum wage became effective on California $15.00 $15.00 1/1/2019 1/1/2017. Annual determinations will be made until the minimum wage has reached $15. Malibu, $13.25 $13.25 Current Malibu voted to raise the minimum wage to $15 California $14.25 $14.25 7/1/2019 by mid-2020 for businesses with more than 25 $15.00 $15.00 7/1/2020 employees. Milpitas $13.50 $13.50 Current On February 21, 2017, the Milpitas City Council California $15.00 $15.00 7/1/2019 adopted Ordinance No. 292 to establish a city-wide minimum wage. Minneapolis, $11.25 $11.25 Current Minnesota $12.25 $12.25 7/1/2019 Large businesses with 100+ employees. No exception $13.25 $13.25 7/1/2020 for tipped workers. Indexed to inflation on January 1, $14.25 $14.25 7/1/2021 2023. $15.00 $15.00 7/1/2022 Montgomery $4.00 $12.25 Current Rate for businesses with at least 51 employees. County, $4.00 $13.00 7/1/2019 Annual wage increases will correspond to increases in Maryland $4.00 $14.00 7/1/2020 the Consumer Price Index effective 2021 $4.00 $15.00 7/1/2021 Mountain View, $15.00 $15.00 Current Mountain View decided against delaying a scheduled California $15.65 $15.65 1/1/2019 minimum wage increases in order to align with minimum wage rates throughout the region. Annual minimum wage increases will be indexed to inflation starting on 1/1/2020. 2019 State and Local Minimum and Tipped Wage Rates Current rate and planned increases (Unless otherwise noted) States and localities in BOLD represent rates above the federal minimum wage.

STATE/ TIPPED MINIMUM EFFECTIVE LOCALITY WAGE WAGE DATES NOTES New York City $8.65 $13.00 Current On 12/31/2018 New York City businesses with 11 $10.00 $15.00 12/31/2018 or more employees must pay $15 an hour with a $10 tipped wage, and employers in Long Island and Westchester must pay $12 an hour with an $8 tipped wage. Quick service employees are paid on a different wage scale. (See next entry).

New York City N/A $13.50 Current A separate rate applies for fast food workers outside Fast Food N/A $15.00 12/31/2018 of New York City, in Greater New York State. Employees Oakland, $13.23 $13.23 Current Oakland will observe indexed increases yearly on Jan. California $13.80* $13.80* 1/1/2019 1st utilizing CPI data from Aug.-Aug. Pasadena, $13.25 $13.25 Current Applies to businesses with 26 or more employees. California $14.25 $14.25 7/1/2019 Employers with 25 or fewer employees will have a one-year grace period to comply with the ordinance. $15.00 $15.00 7/1/2020 2019 and 2020 increases are contingent on the result of a pending city-requested economic analysis.

Palo Alto, $13.50 $13.50 Current Palo Alto will be indexed each January after 2019. California $15.00 $15.00 1/1/2019 Portland, $5.00 $10.90 Current The city follows state tipped wage law. Minimum wage Maine corresponds to increases in the Consumer Price Index TBD TBD 7/1/2019 effective January 1, 2019. Portland, $12.00 $12.00 Current Oregon applies a $1.25 increase of the state’s Oregon $12.50 $12.50 7/1/2019 minimum wage to the Portland metro area. Prince $3.63 $11.50 Current George’s County, State law applies for tipped wage. Maryland $2.13 $7.25 Current Federal cash/tipped wage law applies. Redwood City, $11.00 $11.00 Current Beginning on 1/1/2020, the wage will be $15.00 California $13.50 $13.50 1/1/2019 plus the change in the Consumer Price Index. They TBD TBD 1/1/2020 will return to indexing on 1/1/2021. Richmond, $13.41 $13.41 Current Richmond’s minimum wage will be indexed to California $15.00 $15.00 1/1/2019 inflation starting January 1, 2020. The city minimum wage does not apply to tipped employees; state law applies. Saint Paul, $11.50 $11.50 7/1/2020 This is the rate for businesses with more than Minnesota $12.50 $12.50 7/1/2021 100 employees. Businesses with 10,000 or more employees will reach $15 by 2022. Businesses with $13.50 $13.50 7/1/2022 100 or fewer employees will reach $15 by 2025. No $15.00 $15.00 7/1/2023 exception for tipped workers. State minimum wage laws apply until 2020. After reaching $15, yearly minimum wage increases will be indexed to inflation. San Diego, $11.50 $11.50 Current San Diego’s 1/1/2019 scheduled indexed increase California $12.00 $12.00 1/1/2019 was changed to match California’s $12 statewide minimum wage (the rate for larger businesses.) San Francisco, $15.00 $15.00 Current San Francisco has had an indexed minimum wage California TBD TBD 7/1/2019 since 2004. In 2014, the city’s voters passed a $15.00 minimum wage ballot initiative that will be phased in by July 2018. San Francisco will go back to indexing its minimum wage to local inflation rates in July 2019. State law allows no tip credit.

San Jose, $13.50 $13.50 Current State law allows no tip credit. California $15.00 $15.00 1/1/2019 San Leandro, $13.00 $13.00 Current On September 6, 2016, the City Council adopted a California $14.00 $14.00 7/1/2019 local ordinance that accelerates implementation of $15.00 $15.00 7/1/2020 the State of California’s minimum wage requirements. 2019 State and Local Minimum and Tipped Wage Rates Current rate and planned increases (Unless otherwise noted) States and localities in BOLD represent rates above the federal minimum wage.

STATE/ TIPPED MINIMUM EFFECTIVE NOTES LOCALITY WAGE WAGE DATES San Mateo, $13.50 $13.50 Current Minimum wage enacted by 2016 ordinance. California $15.00 $15.00 1/1/2019 Beginning January 1, 2020, the minimum wage will be annually adjusted based on the Regional Consumer Price Index Santa Clara, $13.00 $13.00 Current Beginning on 1/1/2020, the wage will be indexed to California $15.00 $15.00 1/1/2019 inflation. Santa Fe $2.13 $11.40 Current TBD TBD 3/1/2019 Santa Fe City’s living wage corresponds to increases (City), New in the CPI-W. Mexico Santa Fe $3.41 $11.40 Current Santa Fe County’s living wage corresponds to (County), New TBD TBD 3/1/2019 increases in the CPI-W. Tipped Wage is equal to 30 Mexico percent of the minimum wage. Santa Monica, $13.25 $13.25 Current Applies to businesses with 26 or more employees. California $14.25 $14.25 7/1/2019 State law allows no tip credit. Businesses with less $15.00 $15.00 7/1/2020 than 26 employees have an extra year to comply. SeaTac, $15.64 $15.64 Current SeaTac’s current minimum wage law applies to Washington $16.09 $16.09 1/1/2019 businesses outside but not within the airport. Seattle, $15.45 $15.45 Current Seattle splits up employers into Schedule 1 (500+) Washington $16.00 $16.00 1/1/2019 and Schedule 2 (under 500), but it also classifies small franchisees of chain restaurants as “Schedule 1”. The rate provided is for Schedule 1 employers. Sunnyvale, $15.00 $15.00 Current Beginning in 2019, the wage will be indexed to California $15.65 $15.65 1/1/2019 inflation. Tacoma, $12.00 $12.00 Current Beginning in 2019, the wage will be indexed to Washington $12.35* $12.35* 1/1/2019 inflation. Washington, $3.89 $13.25 Current Beginning 7/1/2021, the wage will be indexed to DC $4.45 $14.00 7/1/2019 inflation. $5.00 $15.00 7/1/2020

Please contact Mike Saltsman at (202) 463-7650 with questions.