The labor departments of a number of states have recently made announcements regarding the status of their minimum wage, specifically whether or not it will increase. These announcements are important for employers and their payroll departments, as it lets them know what to expect for 2018.
Minnesota Will Increase Its Minimum Wage
Minnesota has announced that its hourly minimum wage for 2018 will increase, from $9.50 to $9.65. This increase will be applied to businesses that have yearly gross revenue of $500,000 or more. Minimum wages will increase from $7.75 to $7.87 for smaller businesses that have yearly gross revenue of below $500,000.
The wage of $7.87 is applicable to younger workers who are beneath the age of 18, and can also be used as a wage for employees who are training, and who are beneath the age of 20, within the first ninety days of their employment. Minnesota’s new hourly minimum wages are inflation indexed, and will go into effect by the first of January in 2018.
Other States That Will Likely Increase Their Minimum Wage In The Coming Year
Aside from Minnesota, other states which are expected to increase their minimum wages in 2018 include South Dakota, New Jersey, Florida, Ohio and Montana. Official statements are not expected to be issued until mid-October at the latest. In the case of Missouri, announcements regarding minimum wages usually aren’t made until November.Utilizing requirements which are statutory along with recently released data from the Bureau of Labor Statistics, experts have projected a number of specific wage increases for different states.
The Status of Other States
A number of states will be absent next year as far as minimum wage increases are concerned. Much of this has to do with bailout initiatives as well as new legislation. States that fall under this category include Washington, Arizona, Colorado and Oregon. Each of these states maintained measures which were wage related as of November 2016 which were approved by their respective legislatures. As such their minimum wages will increase yearly over a period of a few years, which eliminates the need for them to make the adjustments annually.
In particular, Arizona usually announces its minimum wage by the middle of October, but after the approval of Proposition 206 in 2016, the states minimum wage was subject to several yearly increases, and is expected to reach $10.50 by 2018. Paid sick time benefits have also been included. Colorado passed Amendment 70, which went into effect at the beginning of 2017 and increases the state’s minimum wage hourly to $9.30 cents. Like Arizona, its minimum wage is expected to increase automatically for the next few years, until it reaches $12 per hour, which is expected by 2020.
Washington approved initiative 1433, which also determines their minimum wages up until 2020, and Oregon enacted S.B. 1532, which annually increases the hourly minimum wage, but will do so until 2022 rather than 2020.