Posted on Dec 5, 2018

On January 1, 2019, many states and localities are increasing their minimum wage amounts. In some areas, the amounts paid to tipped employees is also increasing and garnishment limits may also be changing.

This chart briefly details the changes that will kick in on New Year’s Day. For more information about your situation, consult with your payroll advisor.

State Change on January 1, 2019
Alaska    The minimum wage will increase from $9.84 to $9.89 per hour. Tipped employees must be paid this same rate.
Arizona    The minimum wage will increase from $10.50 to $11 per hour. The cash minimum wage for tipped employees will increase from $7.50 per hour to $8 per hour. In Flagstaff, the minimum wage will increase in from $11 to $12 per hour.
Arkansas    The minimum wage will increase from $8.50 to $9.25 per hour. For tipped employees, the cash minimum wage will remain at $2.63 per hour.
California    The minimum wage will rise from $11 to $12 per hour for employers with more than 25 employees. It will increase from $10.50 to $11 per hour for employers with fewer than 26 employees. Tipped employees must also be paid this rate. The minimum wage will also increase in Belmont, Cupertino, El Cerrito, Los Altos, Mountain View, Palo Alto, Redwood City, Richmond, San Diego, San Jose, San Mateo, Santa Clara and Sunnyvale.
Garnishment limits may also change. In CA, the maximum amount subject to garnishment can’t exceed the lesser of 25% of weekly disposable income, or 50% of the amount by which the individual’s disposable earnings for the week exceed 40 times the greater of either the state or local minimum wage rate in effect where the debtor works when the earnings are payable.
Colorado    The minimum wage will increase from $10.20 to $11.10 per hour. The cash minimum wage for tipped employees will increase from $7.18 per hour to $8.08 per hour. The garnishment limit is also changing.
Delaware    The minimum wage will rise from $8.25 to $8.75 per hour. For tipped employees, the cash minimum wage rate will remain at $2.23 per hour.
Florida    The minimum wage will increase from $8.25 to $8.46 per hour. The cash minimum wage for tipped employees will increase from $5.23 per hour to $5.44 per hour.
Maine    The minimum wage will increase from $10 to $11 per hour. The cash minimum wage for tipped employees will increase from $5 per hour to $5.50 per hour. The garnishment limit is also changing.
Massachusetts    The minimum wage will rise from $11 to $12 per hour. The cash minimum wage rate for tipped employees will increase from $3.75 per hour to $4.35 per hour.
Minnesota    The minimum wage will increase from $9.65 to $9.86 per hour for large employers (those with annual gross sales of $500,000 or more, exclusive of retail excise taxes). The minimum wage for small employers will increase from $7.87 per hour to $8.04 per hour. Tipped employees must also be paid these rates.
Missouri    The minimum wage will increase from $7.85 to $8.60 per hour. For tipped employees, the cash minimum wage will increase from $3.925 per hour to $4.30 per hour.
Montana    The minimum wage will increase from $8.30 to $8.50 per hour. Tipped employees must also be paid this rate.
New Jersey    The minimum wage will increase from $8.60 to $8.85 per hour. The cash minimum wage for tipped employees will remain at $2.13 per hour.
New Mexico The state minimum wage will remain at $7.50 per hour, but the minimum wage rate will increase in Albuquerque, Bernalillo County and Las Cruces.
New York    On December 31, 2018, the minimum wage will rise from: 1) $13 to $15 per hour for NY city employers with 11 or more employees; 2) $12 to $13.50 per hour for NY city employers with 10 or fewer employees; 3) $11 to $12 per hour for Nassau, Suffolk and Westchester county employers, and 4) $10.40 to $11.10 per hour for employers in areas not noted above. The cash minimum wage for tipped employees varies by industry. The garnishment limits will also change on January 1.
Ohio    The minimum wage will increase from $8.30 to $8.55 per hour. The cash minimum wage rate for tipped employees will increase from $4.15 per hour to $4.30 per hour.
Rhode Island    The minimum wage will increase from $10.10 to $10.50 per hour. However, the minimum cash wage for tipped employees will remain at $3.89 per hour.
South Dakota    The minimum wage will increase from $8.85 to $9.10 per hour. The cash minimum wage for tipped employees will increase from $4.425 per hour to $4.55 per hour. The garnishment limit will also change.
Vermont    The minimum wage will increase from $10.50 per hour to $10.78 per hour. The cash minimum wage for tipped employees will increase from $5.25 to $5.39 per hour.
Washington    The minimum wage will increase from $11.50 to $12 per hour. Tipped employees must also be paid this rate. The minimum wage will also increase in Seattle, SeaTac and Tacoma.

Looking Ahead in 2019

On July 1, 2019, the minimum wage will go up in the District of Columbia from $13.25 to $14 per hour.

In Oregonthe minimum wage will increase in July of next year to various amounts, depending on where an employer is located. For employers located within the Portland metro urban growth boundary, the minimum wage will go from $12 per hour to $12.50. In smaller cities, it will go from $10.75 to $11.25 per hour. And in non-urban counties, the minimum wage will rise from $10.50 to $11 per hour. All of the changes in Oregon are effective on July 1, 2019.

In addition, both houses of the Michigan legislature have approved legislation that would increase the state’s minimum wage rate from $9.25 per hour to $10 per hour, effective March 1, 2019, with annual increases until it reaches $12 per hour, effective January 1, 2022. The legislation had the effect of keeping an approved ballot measure off the November 6 election ballot that would have allowed voters to decide whether to increase the minimum wage rate. However, several published reports say that the Republican-controlled legislature passed the bill not only to keep voters from determining the issue, but with the intention of later killing the measure. They are reportedly working to scale back the minimum wage legislation and paid sick legislation before they leave office in December.