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Numerous State and Local Minimum Wage Rate Increases Taking Effect July 1

Deborah Tam, CPP  

Deborah Tam, CPP  

Although the federal minimum wage rate has remained at $7.25 per hour since July 24, 2009, that has not stopped numerous states and localities from changing their own minimum wage laws.

The numerous minimum wage rate changes include statewide increases in New Jersey and Oregon.

Since early 2014, 25 states and the District of Columbia have changed their minimum wage laws and some 27 states and the District of Columbia have had their effective minimum wage rate increase since that same time. And 41 localities throughout the U.S. have adopted minimum wage rates above their state minimum wage.

Many of the minimum wage law changes that states and localities enact call for the rate increases to occur incrementally, over a period of time, that may take years.  And some of these changes affect small employrs and larger employers differently. This can be a lot to keep track of for an employer.

There are a number of state and local minimum wage rate increases that are taking effect on July 1, 2019.  See below for a list of the increases.

California

  • The minimum wage rate increases to $13.50 per hour for all employers, effective July 1, 2019.  This is up from $11.00 per hour for small employers and $12.00 for large employers.
  • Effective July 1, 2019, the minimum wage rate increases to $16.30 per hour for both small (55 or fewer employees within the city limits) and large businesses (56 or more employees within the city limits). The minimum wage rate through June 30, 2019 is $15.00 per hour for small employers and $15.69 for large employers. The minimum wage rate for small independent restaurant is $15 per hour, effective July 1, 2019. A small independent restaurant is a restaurant that has 20 or fewer locations globally and excludes any franchisee associated with a franchisor that has more than 20 locations globally.
  •  Effective July 1, 2019, the local minimum wage for employers with 26 or more employees is $13.50 per hour.
  • Long Beach. The minimum wage for hotel workers increases from $14.64 per hour to $14.97 per hour, effective July 1, 2019. The minimum wage for concessionaire workers increases from $14.37 per hour to $14.72 per hour.
  • Los Angeles. The minimum wage rate for employers and nonprofits with more than 25 employees increases from $13.25 per hour to $14.25 per hour, effective July 1, 2019. The minimum wage rate for employers and nonprofits with 25 or fewer employees increases from $12.00 per hour to $13.25 per hour, effective July 1, 2019. Hotel employers with at least 150 rooms must pay hotel workers a minimum wage rate of $16.63 per hour, effective July 1, 2019 ($16.10 per hour prior to July 1, 2019).
  • The minimum wage rate for employers with 26 or more employees increases from $13.25 per hour to is $14.25 per hour, effective July 1, 2019. For employers with 25 or fewer employees, the minimum wage rate increases from $12.00 per hour to $13.25 per hour, effective July 1, 2019. 
  • The minimum wage rate increases from $13.50 per hour to $15.00 per hour, effective July 1, 2019. San Francisco. The minimum wage rate increases from $15.00 per hour to $15.59 per hour, effective July 1, 2019. 
  • San Jose. The living wage rate for airport workers at the Norman Y. Mineta San Jose International Airport will increase from $15.85 per hour to $16.46 per hour with benefits and from $17.10 per hour to $17.71 per hour without benefits.
  • San Leandro. The minimum wage rate for employers with a business license in San Leandro increase from $13.00 per hour to $14.00 per hour, effective July 1, 2019.
  • Santa Monica. The minimum wage rate for employers with more than 25 employees increases from $13.25 per hour to $14.25 per hour, effective July 1, 2019. The minimum wage rate for employers with 25 or fewer employees increases from $12.00 per hour to $13.25 per hour, effective July 1, 2019. The minimum wage rate for Santa Monica hotel workers increases from $16.10 per hour to $16.63 per hour, effective July 1, 2019. The minimum wage rate for hotel workers will be aligned to the Los Angeles hotel.

Colorado 

  • The city of Denver has passed an ordinance will incrementally raise the minimum wage for all city employees (1,900 workers) to $15 over a three-year period. The minimum wage first increases to $13 per hour on July 1, 2019, next to $14 per hour on July 1, 2020, and finally to $15 per hour on July 1, 2021. Colorado’s minimum wage is currently set at $11.10 per hour.

District of Columbia 

  • The minimum wage rate in D.C. increases from $13.25 per hour to $14.00 per hour, effective July 1, 2019.The amount exempt from garnishment is the greater of 75% of disposable weekly wages or 40 times the District of Columbia minimum wage rate of $560 per week ($14 per hour x 40).

Illinois

  • The minimum wage rate increases from $12.00 per hour to $13.00 per hour, effective July 1, 2019.
  • Cook County. The minimum wage rate increases from $11.00 per hour to $12.00 per hour, effective July 1, 2019. Glenview opts into the Cook County minimum wage and paid sick leave ordinances, effective July 1, 2019.

Maine

  • The minimum wage increases from $10.90 per hour to $11.11 per hour, effective July 1, 2019.

Maryland

  • Montgomery County. The minimum wage rate increases from $12.25 per hour to $13.00 per hour, effective July 1, 2019, for employers with over 50 employees. For employers with 50 or fewer employees, the minimum wage rate increase from $12 per hour $12.50 per hour.

Minnesota

  • For large businesses (more than 100 employees), the minimum wage rate increases from $11.25 per hour to $12.25 per hour, effective July 1, 2019. For small businesses, the minimum wage rate increases from $10.25 per hour to $11.00 per hour, effective July 1, 2019. 

New Jersey 

  • The minimum wage rate in New Jersey increases from $8.85 per hour to $10.00 per hour, effective July 1, 2019. The cash minimum wage for tipped workers increases from $2.13 per hour to $2.63 per hour. The minimum wage rate increases do not apply to employers with fewer than 6 employees and agricultural or seasonal workers.

Oregon

  • For employers located within the Portland metro urban growth boundary (within the boundaries of Clackamas, Multonomah, and Washington counties), the minimum wage rate increases from $12.00 per hour to $12.50 per hour, effective July 1, 2019.
  • For employers located within smaller cities such as Salem and Eugene that are not in rural counties or in the metro Portland area (standard counties), the minimum wage rate increases from $10.75 per hour to $11.25 per hour, effective July 1, 2019. 
  • For employers located within nonurban counties (Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa or Wheeler), the minimum wage rate increases from $10.50 per hour to $11.00 per hour, effective July 1, 2019.

Pennsylvania

  • Minimum wage rate for state government employees and state contractors. The minimum wage rate for state employees increases from $12.00 per hour to $12.50 per hour, effective July 1, 2019.
  • Minimum wage rate for Philadelphia city workers and employees of city contractors. The minimum wage rate increases from $12.40 per hour to $13.25 per hour, effective July 1, 2019.
Source:  https://www.epi.org/minimum-wage-tracker/

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