Under the Fair Labor Standards Act (FLSA), the current federal minimum wage is $7.25 per hour and has not increased since July 2009. However, some states have a higher minimum wage rate. The FLSA minimum wage standard does not supersede any state or local minimum wage rate. Therefore, if a state or municipality has a minimum wage that is higher than the federal minimum, employers are required to pay workers the higher amount. Several states and localities have announced minimum wage changes for 2018.
One thing to note is that the minimum wage for federal contractors in 2018 is $10.35 per hour. Basically, a federal contractor is someone who works under a federal contract between a department or agency of the Federal Government and any person for the purchase, sale, or use of goods or services.
Pay by State
In a few states, the minimum wage varies from one city to another in the state. For example, the minimum wage for Los Angeles and Chicago is higher than the mandated minimum wage for their state. This variance is due to differences in the cost of living, usually in urban communities. At the present time, 29 states have minimum wages above the federal minimum wage ($7.25/hour), and five states have not set a state minimum wage. In these states, including Alabama, Louisiana, Mississippi, South Carolina, and Tennessee, the federal minimum wage applies unless the employer is exempt according to the Fair Labor Standards Act. Determining an FLSA exemption often requires analysis and consultation with an FLSA lawyer.
Pas de Deux
The interplay between the FLSA and the minimum wages that exceed the federal mandates is an interesting ballet, as the additional wages could pirouette into additional damages and sometimes may be enforced contractually. However, the computation of damages in federal court for a pure minimum wage overtime rather than a FLSA overtime may still be unsettled in certain jurisdictions.
Below is a list of the states increasing their minimum wage and the dates reflecting the changes in the upcoming year. Many states have local differences, so it’s best to verify through an attorney that is knowledgeable about wage and hour laws.
State Minimum Wage Changes Effective December 31, 2017
NYC: $13.00 Large Employers (11 or more)
$12.00 Small Employers (10 or less)
State Minimum Wage Changes Effective January 1, 2018
Alaska: $9.84 per hour
Arizona: $10.50 per hour
California: $11.00 per hour with 26 employees or more
$10.50 per hour with fewer than 26 employees
Colorado: $10.20 per hour
Florida: $8.25 per hour
Hawaii: $10.10 per hour
Maine: $10.00 per hour
Michigan: $9.25 per hour
Minnesota: $9.65 per hour (annual gross revenue of $500,000 or more)
$7.87 per hour (annual gross revenue of less than $500,000)
Missouri: $7.85 per hour
Montana: $8.30 per hour
New Jersey: $8.60 per hour
Ohio: $8.30 per hour (gross receipts of $305,000 or more)
$7.25 per hour (gross receipts under $305,000)
Rhode Island: $10.10 per hour
South Dakota: $8.85 per hour
Vermont: $10.50 per hour
Washington: $11.50 per hour
State Minimum Wage Changes Effective July 1, 2018
D.C.: $13.25 per hour
Maryland: $10.10 per hour
Oregon: $12.00 per hour (Portland metro area)
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