Minimum Wage in 21 States on the Rise
Mandatory hourly wage will increase on or around New Year’s Day.
Nov 26, 2018
ALEXANDRIA, Va. – In addition to several municipalities, 21 states will increase the minimum wage before, on or after New Year’s Day 2019, Nation’s Restaurant News reports.
This includes recent statewide increases approved by voters in Arkansas and Missouri on Nov. 6. Some wage changes will include graduated increases, such as Missouri’s $12 minimum hourly wage that goes from $7.85 to $8.60 on Jan. 1 and gradually increases by 85 cents per year until it reaches $12 per hour in 2023.
There is a possibility that the Missouri General Assembly could alter or even overturn the new wage, but Missouri employers are advised to prepare for the wage increase starting Jan. 1 by adjusting payroll systems to comply with the new law.
Vocal advocacy groups have helped drive the recent wage hikes, but the current scarcity of workers has put even more pressure on employers to boost pay.
“Companies are competing against each other more on benefits than they are wages,” said Joe Kefauver, managing partner at Align Public Strategies, a public affairs and communications firm in Orlando, Fla. “They are spending more time figuring out paid leave and sick leave and what Starbucks is doing with childcare. Companies are more focused on that space than they are wages.”
He added, “Three or four years ago, the notion of a $15 minimum wage was insane. It was fringe. And now it’s the 50-yard line.”
“The minimum wage just hasn’t kept up with the cost of living, and paying higher wages has real bottom-line benefits,” said Howard Hanna, owner of The Rieger restaurant in Kansas City, Mo. “I’ve seen lower turnover and less kitchen waste, which saves us money, and better customer service that helps turn guests into regulars.”
The federal minimum wage, which remains the standard in 21 states, has remained at $7.25 an hour since 2009. The new wages are:
Alaska – $9.84 to $9.89 (no tip credit)
Arizona – $10.50 to $11 (tipped wage $7.50)
Arkansas – $8.50 to $9.25 (tipped wage $2.63)
California – $11 to $12 (no tip credit)
Colorado – $10.20 to $11.20 (tipped wage $7.18)
Delaware – $8.25 to $8.75 (tipped wage $2.23)
District of Columbia – $13.25 to $14 (tipped wage $3.89)
Florida – $8.25 to $8.46 (tipped wage $5.44)
Maine – $10 to $11 (tipped wage $5)
Massachusetts – $11 to $12 (tipped wage $3.75)
Minnesota – $9.65 to $9.86 (no tip credit)
Missouri – $7.85 to $8.60 (tipped wage $3.93)
Montana – $8.30 to $8.50 (no tip credit)
New Jersey – $8.60 to $8.85 (tipped wage $2.13)
New York – $10.40 to $11.10 (tipped wage $7.50)
Ohio – $8.30 to $8.55 (tipped wage $4.30)
Oregon – $10.75 to $11.25 (no tip credit)
Rhode Island – $10.10 to $10.50 (tipped wage $3.89)
South Dakota – $8.85 to $9.10 (tipped wage $4.43)
Vermont – $10.50 to $10.78 (tipped wage $5.25)
Washington - $11.50 to $12 (no tip credit)
Employers who hire workers who receive tips may be eligible for a tip credit that lowers the minimum wage for those employees.
