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State Wage Rates for State Minimum Wage and Tipped Employees

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State Wage Rates for State Minimum Wage and Tipped Employees 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 Alabama $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 Arizona $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. Arkansas $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 California $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 Colorado $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. Connecticut $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 Delaware $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 Florida $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. Georgia $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. Hawaii $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. Idaho $3.35 $7.25 Current Idaho’s cash wage is frozen at $3.35. Illinois $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 Indiana $2.13 $7.25 Current Indiana’s minimum wage law excludes FLSA employees; federal law on cash/tipped wage applies. Iowa $4.35 $7.25 Current Iowa’s tip credit is 40% of the applicable minimum wage. Kansas $2.13 $7.25 Current Kansas’s minimum wage law excludes FLSA employees; federal law on cash/tipped wage applies. Kentucky $2.13 $7.25 Current Federal cash/tipped wage law applies in Kentucky. Louisiana $2.13 $7.25 Current Louisiana has no state minimum wage law. Maine $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. Maryland $3.63 $10.10 Current Maryland’s tipped wage is frozen at $3.63. Massachusetts $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 Michigan $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 Minnesota $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.) Mississippi $2.13 $7.25 Current Mississippi has no state minimum wage law. Missouri $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 Montana is an indexed state with no tip credit. $8.50 $8.50 1/1/2019 Nebraska $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 Nevada $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. New Hampshire $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. New Jersey $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. New Mexico $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 New York $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 North Carolina $2.13 $7.25 Current North Carolina’s tipped wage is set at the federal amount of $2.13. North Dakota $4.86 $7.25 Current North Dakota’s tip credit is 33% of the applicable minimum wage. Ohio $4.15 $8.30 Current Ohio's tip credit is 50% of the applicable minimum $4.30 $8.55 1/1/2019 wage.
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