As of January 1, 2019, 18 states and as many as 23 localities increased their minimum wage rates for workers. A breakdown of the wage increases is listed below.
This latest batch of wage increases results from a variety of influences, including inflation or cost-of-living adjustments (Alaska, Florida, Minnesota, Montana, New Jersey, Ohio, South Dakota and Vermont), state legislation (California, Delaware, Massachusetts and Rhode Island), and voter approval of ballot initiatives (Arizona, Arkansas, Colorado, Maine, Missouri and Washington). States also vary in how minimum wage rates apply to different businesses. For example, in California, the minimum wage rate varies according to the number of workers a business employs. In New York, the minimum wage for a business varies based on the number of employed workers as well as geographic region.
Other 2019 wage increases will occur later in the year. Oregon and the District of Columbia will increase their minimum wage as of July 1, 2019. Michigan will increase its wage rate in March or April, 90 days after the legislature adjourns. Also in April, the Nevada Labor Commissioner will determine whether to increase the state’s minimum wage based on a formula in the state constitution. In addition, New York increased its wage rate as of December 31, 2018.
Unlike states, the federal minimum wage of $7.25 per hour has remained the same since 2009.
The trend of states raising minimum wages is expected to continue, unless the labor market is adversely effected by a falter in the economy.
STATE MINIMUM WAGE INCREASES ON JANUARY 1, 2019
1. Alaska – Increase from $9.84 to $9.89
2. Arizona – Increase from $10.50 to $11
3. Arkansas – Increase from $8.50 to $9.25
4. California – Increase from $11 to $12 for large employers and $10.50 to $11 for small employers.
5. Colorado – Increase from $10.20 to $11.10
6. Delaware – Increase from $8.25 to $8.75 in January and then to $9.25 in October
7. Florida – Increase from $8.25 to $8.46
8. Maine – Increase from $10 to $11
9. Massachusetts – Increase from $11 to $12
10. Minnesota – Increase from $9.65 to $9.86 for large employers and $7.87 to $8.04 for small employers
11. Missouri – Increase from $7.85 to $8.60
12. Montana – Increase from $8.30 to $8.50
13. New Jersey – Increase from $8.60 to $8.85
14. Ohio – Increase from $8.30 to $8.55
15. Rhode Island – Increase from $10.10 to $10.50
16. South Dakota – Increase from $8.85 to $9.10
17. Vermont – Increase from $10.50 to 10.78
18. Washington – Increase from $11.50 to $12
OTHER INCREASES
1. District of Columbia – Increase from $13.25 to $14 (effective July 1, 2019)
2. Michigan – Increase from $9.25 to $9.45 (effective approximately late March or early April 2019)
3. Oregon – Increase from $12 to $12.50 in Portland; $10.75 to $11.25 standard; and $10.50 to $11 in rural areas (effective July 1, 2019)
4. New York – Increase from $13 to $15 for large employers and $12 to $13.50 for small employers in New York City; increase from $11 to $12 in Long Island and Westchester County; increase from $10.40 to $11.10 everywhere else (effective December 31, 2018).
