Posted 3 years ago - by

Minimum Wage Updates for 2018

Effective July 1, 2018 or later this year, minimum wage rates will increase in the following cities, counties, and states:

STATE INCREASES

Illinois

  • Chicago – Minimum wage increases to $12.00
  • Cook County – Minimum wage increases to $11.00

Maine

  • Portland – $10.90

Minnesota

  • Minneapolis – Minimum wage increases to $11.25/100 or more employees, $10.25/99 or less employees

Oregon – Minimum wage increases to $10.75

  • Nonurban Counties – Minimum wage increases to $10.50
  • Urban Counties – Minimum wage increases to $12.00

Washington DC – Minimum wage increases to $13.25

CALIFORNIA INCREASES

  • Berkeley – Minimum wage increases to $15.00 (effective 10/1/18)
  • Emeryville – Minimum wage increases to $15.00/55 or fewer employees, $15.69/56 or more employees
  • Los Angeles (City and County) – Minimum wage increases to $13.25/26 or more employees, $12.00/25 or fewer employees
  • Malibu – Minimum wage increases to $13.25/26 or more employees, $12.00/25 or fewer employees
  • Milpitas – Minimum wage increases to $13.50
  • Pasadena – Minimum wage increases to $13.25/26 or more employees, $12.00/25 or fewer employees
  • San Francisco – Minimum wage increases to $15.00
  • San Leandro – Minimum wage increase to $13.00
  • Santa Monica – Minimum wage increases to $13.25/26 or more employees, $12.00/25 or less employees

WHAT EMPLOYERS NEED TO DO

  • Consider local governing minimum wage requirements. Minimum wage must be paid at the highest rate mandated for the employer’s locale.
  • Increase wages for employees making less than the new minimum required amount.
  • Consider payroll processing implications when determining the effective date of the wage change.  For example, if wages are increased effective July 1, employees may have different base pays in a single pay period.
  • Review and amend company policies that are paid at minimum wage, for example: travel pay that is paid at minimum wage.
  • Review and amend, if applicable, pay scales for exempt staff considering all Federal, State, and local wage requirements. For example, specific California Wage Orders require that an exempt employee’s monthly salary must be at least two times the State minimum wage for full time employment.

Contact your Payroll Client Manager for assistance in updating your employees’ pay rates, if applicable. Values are subject to change – for more updates, follow our blog by filling out the form below!

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This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.