As we head into the new year, we would like to take a moment to remind you that there are many state minimum hourly wage changes for 2018.  In most of these states, the new minimum wage rates applied as of January 1, 2018, however there are few states will take effect later in 2018. If you are a multi-state employer with operations outside of Massachusetts, it is important to know that many states provide annual increases to the State Minimum Wage based on the U.S. Consumer Price Index and inflation.
Current Federal Minimum Wage Rates
Under the Fair Labor Standards Act (FLSA), the current federal minimum wage is $7.25 per hour. However, because the FLSA does not supersede any state or local laws that are more favorable to employees, if a state has a minimum wage that is higher than the federal minimum, employers subject to the state minimum wage law are obligated to pay the higher rate to employees working in that state.  As of January 1, 2018, the minimum wage rate for federal contractors will rise by fifteen cents, to $10.35 per hour.
2018 State Minimum Wage Rates
HR Knowledge has created a downloadable 2018 State Minimum Wage rate chart for your convenience.
Key Next Steps
  • If HR Knowledge processes your payroll please contact your Client Account Manager to inform them of any employees’ hourly rates that need to be changed to meet the new minimum wage requirements.
  • If you process your own payroll, please note that when you submit these payrolls, you must make any necessary changes to the employees’ rates by entering the new rate in the Pay Rate field found on the Payroll Info page under the Employees tab.