Upcoming Increases to Minimum Wage - 2018

small business compliance employee handbook

While the last federal minimum wage increase was on July 24, 2009, when it rose from $6.55 to $7.25 per hour, many state and local governments have been increasing the minimum wage on their own – some through legislation or ballot initiatives, and others via adopting indexing provisions that authorize small automatic increases to keep pace with the rising cost of living.

The following chart shows the current minimum wage for non-tipped and tipped employees and the next scheduled increase (if any) for each state, the District of Columbia, and numerous local jurisdictions. It is important to note that the rates reflected are those required to be paid by "large" private-sector employers subject to the Fair Labor Standards Act. Rates that may be paid in certain states by "small employers," as defined by applicable state law, to individuals under a certain age (e.g., youth wage), to a certain classification of employees (e.g., fast food workers) or to employees during a "training" period, are not reflected.

ADP Compliance Resources

ADP maintains a staff of dedicated professionals who carefully monitor federal and state legislative and regulatory measures affecting employment-related human resource, payroll, tax and benefits administration, and help ensure that ADP systems are updated as relevant laws evolve. For the latest on how federal and state tax law changes may impact your business, visit the ADP Eye on Washington Web page located at www.adp.com/regulatorynews.

ADP is committed to assisting businesses with increased compliance requirements resulting from rapidly evolving legislation. Our goal is to help minimize your administrative burden across the entire spectrum of employment-related payroll, tax, HR and benefits, so that you can focus on running your business. This information is provided as a courtesy to assist in your understanding of the impact of certain regulatory requirements and should not be construed as tax or legal advice. Such information is by nature subject to revision and may not be the most current information available. ADP encourages readers to consult with appropriate legal and/or tax advisors. Please be advised that calls to and from ADP may be monitored or recorded.

If you have any questions regarding our services, please call 855-466-0790.

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Updated on December 19, 2017

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