Minimum wage increases in 2018

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In 2018, the minimum wages of at least 20 states and Washington, D.C., increased.[1] Increases ranged from a four-cent increase in Alaska to a one-dollar increase in Maine. Of these increases, 18 took effect for the 2018 New Year, and three took effect on July 1, 2018.[2] Out of the 21 increases listed, 11—52.4 percent—happened because of statewide ballot measures approved by voters as early as 2004 and most recently in 2016. One measure was referred to the ballot by state legislators in New Jersey, and the other 10 were put on the ballot through citizen initiatives. The other 10 increases happened because of legislation passed by state lawmakers and an ordinance approved by the D.C. city council. In California and D.C., however, the minimum wage legislation was approved under pressure from citizen initiatives featuring provisions for higher wages and benefit requirements.[3]

HIGHLIGHTS
  • The highest minimum wage increase of $1 per hour was in Maine due to a 2016 citizen initiative.
  • Minimum wage increases in 2018 included 13 increases ranging between $0.35 and $1.00 mandated by ballot measures or legislation passed from 2014 through 2017.
  • The other eight increases were adjustments ranging from $0.04 to $0.20 based on inflation, the cost of living, or the Consumer Price Index mandated by ballot measures or legislation passed from 2004 through 2014.
  • Of the ballot measures and legislation responsible for the 2018 minimum wage increases, one was passed in 2017, eight were passed in 2016, seven in 2014, one in 2013, three in 2006, and one in 2004.

    • Increases effective on January 1, 2018

    HIGHLIGHTS
  • Increases in the minimum wage took place on New Year's Day—or New Year's Eve in the case of New York—in 18 states.

    • Minimum wage increases can be divided up into those that took place on January 1, 2018, or on December 31, 2017—in the case of New York—and those that took place on July 1, 2018. Most increases took place for the New Year. Eleven of the 18 increases were passed by voters at the ballot box; ten of those ballot measures were put before voters through citizen initiatives.

    Increases through ballot measures

    HIGHLIGHTS
  • Minimum wage measures are very popular with voters; from 1912 through 2017, voters decided 30 statewide measures concerning the minimum wage and approved 28 of them.
  • Voters decided in favor of higher minimum wages by an average of 60.3 percent across all 30 measures on the ballot since 1912.
  • Eleven of the statewide minimum wage increases that occurred in 2018 were due to ballot measures—10 of which were put on the ballot through citizen initiatives.
  • The only two minimum wage measures to be defeated from 1912 through 2017 were in 1996 in Missouri and Montana.

    • Increases from past ballot measures occur either because the measures were designed to incrementally phase in the targeted minimum wage rate or because the measures—once the primary increase provisions were enacted—were designed to require annual adjustments based on inflation, the cost of living, or the Consumer Price Index.

    The states with minimum wage increases in 2018 because of previously approved ballot measures are below:

    • Alaska: On January 1, 2018, the minimum wage in Alaska increased from $9.80 to $9.84 per hour according to Measure 3, which was a citizen initiative approved by 69 percent of voters in 2014. Measure 3 incrementally increased the state's minimum wage to $9.75 per hour by 2016 and mandated adjustments based on inflation or adjustments to make the state's rate one dollar higher than the Federal rate, whichever is higher, each year on January 1.
    • Arizona: On January 1, 2018, the minimum wage in Arizona increased from $10 to $10.50 per hour according to Proposition 206, a citizen initiative approved in 2016. Proposition 206 increased the state’s minimum wage from $8.05 to $10 per hour in 2017 and was designed to phase-in a minimum wage of $12 per hour by 2020. Proposition 206 also set the minimum base wage for tipped workers at $3.00 lower than that of workers without tips, mandated paid sick leave, and tied the minimum wage to the cost of living after 2020. The next increase was to $11 per hour on January 1, 2019, and the final scheduled increase to $12 per hour before indexing to the cost of living was on January 1, 2020.
    • Colorado: On January 1, 2018, the minimum wage in Colorado increased from $9.30 to $10.20 per hour according to Amendment 70, a citizen initiative approved by voters in 2016. Amendment 70 increased the state’s minimum wage from $8.31 to $9.30 per hour in 2017 and was designed to increase the minimum wage to $12 per hour by 2020. Amendment 70 also set the minimum base wage for tipped workers at $3.02 lower than that of workers without tips and tied the minimum wage to the cost of living after 2020. The next increase was to $11.1 per hour on January 1, 2019, and the last 90-cent increase was to $12 per hour on January 1, 2020, with the wage tied to cost of living starting in 2021.
    • Florida: On January 1, 2018, the minimum wage in Florida increased from $8.10 to $8.25 per hour according to Amendment 5, a citizen-initiated constitutional amendment approved by voters in 2004. Amendment 5 was approved by 71 percent of voters. Amendment 5 increased the state minimum wage to $6.15 per hour and tied the minimum wage to inflation—adjusted each year on January 1.
    • Maine: On January 1, 2018, the minimum wage in Maine increased from $9.00 to $10.00 per hour according to Question 4, a citizen initiative approved in 2016. Question 4 increased the state’s minimum wage from $7.50 to $9.00 per hour in 2017 and was designed to increase the minimum wage to $12 per hour by 2020. Question 4 also tied the minimum wage to the Consumer Price Index following 2020 and was designed to increase the minimum wage for tipped workers to a minimum base wage of $5 per hour in 2017, increasing $1 per year until it matched the minimum wage for non-tipped workers. The provision regarding tipped employees, however, was repealed by the legislature, and Maine’s tip credit law was reinstated to allow tips to count as a credit for up to half of the worker’s minimum wage. The next increase was to $11.00 per hour on January 1, 2019, and the final incremental increase to $12.00 per hour was on January 1, 2020, after which the measure was designed to tie the state's minimum wage to the Consumer Price Index.
    • Missouri: On January 1, 2018, the minimum wage in Missouri increased from $7.70 to $7.85 per hour according to Proposition B, which was approved by 76 percent of voters in 2006. Proposition B increased the state's minimum wage to $6.50 per hour and was designed to adjust the minimum wage to the Consumer Price Index every year thereafter on January 1.[4]
    • Montana: On January 1, 2018, the minimum wage in Montana increased from $8.15 to $8.30 per hour according to Initiative 151, which was approved by 73 percent of voters in 2006. Initiative 151 increased the state minimum wage to $6.15 per hour and required the wage to be adjusted according to the cost of living each year on January 1.
    • New Jersey: On January 1, 2018, the minimum wage in New Jersey increased from $8.44 to $8.60 according to Question 2, which was approved by 61 percent of voters in 2013. Question 2 was a constitutional amendment that was referred to voters by the state legislature. It increased the state minimum wage to $8.25 per hour starting in 2014 and mandated an adjustment based on the Consumer Price Index each year on January 1.
    • Ohio: On January 1, 2018, the minimum wage in Ohio increased from $8.15 to $8.30 according to Amendment 2, which was approved by 57 percent of voters in 2006. Amendment 2 increased the state minimum wage to $6.85 per hour and required adjustments based on inflation each year on January 1.
    • South Dakota: On January 1, 2018, the minimum wage in South Dakota increased from $8.65 to $8.85 per hour according to Initiated Measure 18, which was approved by 55 percent of voters in 2014. Initiated Measure 18 increased the state minimum wage to $8.50 per hour and mandated adjustments based on the Consumer Price Index each year on January 1.[5]
    • Washington: On January 1, 2018, the minimum wage in Washington increased from $11.00 to $11.50 per hour according to Initiative 1433, which was approved by 57 percent of voters in 2016. Initiative 1433 increased the state’s minimum wage from what would have been $9.55 per hour to $11.00 per hour in 2017 and was designed to increase the minimum wage to $13.50 per hour by 2020 and tie it to inflation thereafter. The initiative also mandated paid sick leave. The next increase was to $12.00 per hour on January 1, 2019, and the final increase before indexing to inflation was to $13.50 per hour on January 1, 2020. The Washington Office of Financial Management estimated that the initiative would require increases to $13.86 per hour on January 1, 2021, and to $14.23 per hour on January 1, 2022.

    Increases through legislative bills

    HIGHLIGHTS
  • Seven of the minimum wage increases taking effect for the New Year were due to bills approved by state legislators rather than by voters at the ballot box.
  • The largest such increase was an $0.80 increase in Hawaii.
  • As of December 2017, California had the highest scheduled statewide minimum wage among all 50 states, with its 2016 legislation to phase in a minimum wage of $15 per hour by 2022; California's minimum wage bill was passed under pressure from a citizen initiative to require a minimum wage of $15 per hour by 2021 that had qualified for the ballot.
    • California: On January 1, 2018, the minimum wage in California increased from $10.50 to $11.00 per hour according to Senate Bill 3, which was passed by the legislature in 2016. The bill was designed to incrementally increase the state's minimum wage to $15 per hour by 2022 and tie the wage to inflation thereafter. Senate Bill 3 was passed as a compromise with a union group that had successfully qualified a citizen initiative for the 2016 ballot that would have raised the minimum wage faster. The initiative was withdrawn by proponents once Senate Bill 3 was signed into law.
    • Hawaii: On January 1, 2018, the minimum wage in Hawaii increased from $9.25 to $10.10 per hour according to legislation passed in 2014. This increase to $10.10 per hour was the last scheduled increase from the 2014 legislation.[6]
    • Michigan: On January 1, 2018, the minimum wage in Michigan increased from $8.90 to $9.25 per hour according to the Workforce Opportunity Wage Act, Public Act 138 of 2014. The legislation was designed to incrementally increase the state's minimum wage to $9.25 per hour and require increases according to the Consumer Price Index each year on January, limiting each annual increase to 3.5 percent.[7]
    • Minnesota: On January 1, 2018, the minimum wage in Minnesota increased from $9.50 to $9.65 for large companies and from $7.75 to $7.87 for small companies, as defined by state law, according to legislation passed in 2014. The 2014 bill incrementally increased the state's minimum wage to $9.50 by 2017 and mandated annual increases based on inflation each year on January 1.[8]
    • New York: On December 31, 2017, the minimum wage in New York increased from $9.70 to $10.40 per hour according to legislation passed in 2016. The bill was designed to incrementally increase the state's minimum wage to $12.50 per hour by 2020 and mandate adjustments based on inflation each year after that.[9]
    • Rhode Island: On January 1, 2018, the minimum wage in Rhode Island increased from $9.60 to $10.10 per hour according to legislation passed in 2017. The 2017 bill was designed to implement another increase to $10.50 per hour on January 1, 2019. It did not provide for annual adjustments based on inflation or the CPI following that.[10]
    • Vermont: On January 1, 2018, the minimum wage in Vermont increased from $10.00 to $10.50 per hour. The state's minimum wage was indexed to the Consumer Price Index, but the most recent bill increasing the state's minimum wage was passed in 2014.

    Increases effective July 1, 2018

    HIGHLIGHTS
  • At least two states and Washington, D.C., also had minimum wage increases on July 1, 2018.
  • Increases in Maryland, the District of Columbia, and Oregon occurred because of legislation passed by state lawmakers or the city council.
    • Maryland: On July 1, 2018, the minimum wage in Maryland increased from $9.25 to $10.10 per hour according to legislation passed in 2014. The 2014 bill incrementally increased the state's minimum wage to $10.10 by 2018, with no further increases or adjustments scheduled after that.[11]
    • Washington, D.C.: On July 1, 2018, the minimum wage in Washington, D.C., increased from $12.50 to $13.25 per hour. The 2016 ordinance was designed to incrementally increase the D.C. minimum wage to $15 per hour by 2020 and to mandate adjustments based on inflation each year after that on July 1. When the 2016 ordinance was approved by the city council, proponents of a $15 minimum wage were circulating a citizen initiative targeting the 2016 ballot. Petitioners abandoned their efforts upon the enactment of the city council's ordinance.
    • Oregon: On July 1, 2018, the standard minimum wage in Oregon increased from $10.25 to $10.75 per hour according to Senate Bill 1532, which was passed in 2016. SB 1532 set the rate in non-urban counties lower than the standard rate ($10.50 starting on July 1, 2018) and the rate in the Portland metro area higher than the standard rate ($12.00 per hour starting on July 1, 2018). Senate Bill 1532 was designed to incrementally increase the state's standard minimum wage—with higher and lower rates based on location—to $13.50 by 2022 and mandate adjustments based on inflation each year after that on July 1.
    • Nevada: In Nevada, the minimum wage is adjusted based on the Consumer Price Index each year on July 1 based on Question 6, an initiated constitutional amendment approved by 69 percent of voters in 2006. Question 6 increased the state's minimum wage to $5.15 per hour for companies that provide benefits and $6.15 for those that don't and required annual adjustments based on the CPI.

    By state

    Below is a map with higher minimum wages in a darker shade of blue. States that are shaded white either have a minimum wage equal to the Federal minimum wage—$7.25 per hour—or have a lower state-set minimum wage over which the Federal minimum wage takes precedence.

    Below is a chart of the data for the minimum wage rates in all 50 states and Washington, D.C., in 2017 and 2018, as well as whether there is an increase and if the increase was because of a citizen initiative, a referred ballot measure, or legislation.

    Note: In some cases, the wage rates below are estimates based on projected cost of living or inflation increases or standard wage rates adjusted based on geographic locations.

    Related articles

    2018 minimum wage measures

    Minimum wage increase measures were proposed in the following states for the 2018 ballot:

    Minimum measures proposed for 2018 ballots
    StateMeasuresStatus
    MissouriMissouri Proposition B: $12 Minimum Wage InitiativeApproved Approveda
    ArkansasArkansas Issue 5, Minimum Wage Increase InitiativeApproved Approveda

    2020 minimum wage measures

    Minimum wage increase measures were proposed in the following states for the 2020 ballot:

    Approveda
    Minimum measures proposed for 2018 ballots
    StateMeasuresStatus
    FloridaFlorida Amendment 2, $15 Minimum Wage Initiative Approved

    See also


    Additional reading

    Footnotes

    1. ↑ There are some other states that featured increases. For example, Nevada law mandates a Consumer Price Index on July 1 of each year, but the amount of the increase was not known as of December 2017.
    2. ↑ Seventeen increases took effect on January 1, 2018. New York's increase technically took effect on December 31, 2017.
    3. ↑ Note that some increases featured in this article were simply estimated based on projected adjustments according to inflation or cost of living.
    4. ↑ Missouri Department of Labor, 'Missouri Minimum Wage Rate Set for 2018," November 20, 2017
    5. ↑ South Dakota Department of Labor and Regulation, "South Dakota Minimum Wage," accessed December 15, 2017
    6. ↑ Huffington Post, "Hawaii To Raise Minimum Hourly Wage To $10.10 By 2018," July 23, 2014
    7. ↑ Department of Licensing and Regulatory Affairs, "New Minimum Wage for Michigan Employees," December 1, 2015
    8. ↑ Star Tribune, "Minnesota minimum wage set to rise with inflation in 2018," August 17, 2017
    9. ↑ New York State Governor, "Governor Cuomo Signs $15 Minimum Wage Plan and 12 Week Paid Family Leave Policy into Law," April 4, 2016
    10. ↑ Gov Docs, "Rhode Island Raises Minimum Wage Effective January 1, 2018," August 22, 2017
    11. ↑ The Washington Post, "Maryland set to increase its minimum wage to $10.10 by 2018," April 7, 2014
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