On the first day of 2018, minimum wage increases will go into effect (New York’s changes will go into effect the day before, on December 31, 2017).
On July 1, 2018, Maryland, Oregon, and D.C. will follow suit with increases of their own.
The ever-changing landscape of the hospitality industry can be confusing and overwhelming - that’s why we’ve created a guide to help you navigate your state’s changes.
Check it out below:
MINIMUM WAGE CHANGES EFFECTIVE DECEMBER 31, 2017
New York State*:
- $11.00 per hour in Nassau, Suffolk, Westchester counties
- $10.40 per hour in the rest of New York state ($11.75 for fast food employees in fast food places outside of New York City)
- $12.00 per hour for 10 or fewer employees, or $13.00 per hour for 11 of more employees in New York City (*see below)
- *Local laws may require different minimum wage rates. For more information regarding New York City, see below.
New York City - Non-Fast Food Employers with More than 10 Employees:
- Non-tipped employees, minimum wage: $13.00 per hour (min. overtime rate: $19.50)
- Food service employees, cash wage: $8.65 per hour (overtime wage $15.15, tip credit $4.35)
- Other service employees, cash wage: $10.85 per hour (overtime wage $17.35, tip credit $2.15, tip threshold $2.80)
New York City - Non-Fast Food Employers with 10 Employees or Less:
- Non-tipped employees, minimum wage: $12.00 per hour (min. overtime rate: $18.00)
- Food service employees, cash wage: $8.00 per hour (overtime wage $14.00 per hour, tip credit $4.00)
- Other service employees, cash wage: $10.00 per hour (overtime wage $16.00, tip credit $2.00, tip threshold $2.60)
New York City - Fast Food Employers:
- Fast Food Employees, minimum wage: $13.50 per hour (min. overtime wage: $20.25)
STATE MINIMUM WAGE CHANGES EFFECTIVE JANUARY 1, 2018:
- Alaska: $9.84 per hour
- Arizona: $10.50 per hour
- California*: $11.00 per hour with 26 employees or more; $10.50 per hour with fewer than 26 employees.
- Colorado: $10.20 per hour
- Florida: $8.25 per hour
- Hawaii: $10.10 per hour
- Maine*: $10.00 per hour
- Michigan: $9.25 per hour
- Minnesota: $9.65 per hour for large employers (annual gross revenue of $500,000 or more); $7.87 per hour for small employers (annual gross revenue of less than $500,000).
- Missouri: $7.85 per hour
- Montana: $8.30 per hour
- New Jersey: $8.60 per hour
- Ohio: $8.30 per hour (gross receipts of $305,000 or more); $7.25 per hour (gross receipts under $305,000)
- Rhode Island: $10.10 per hour
- South Dakota: $8.85 per hour
- Vermont: $10.50 per hour
- Washington*: $11.50 per hour
State Minimum Wage Changes Effective July 1, 2018
- D.C.: $13.25 per hour on 7/1/18
- Maryland*: $10.10 per hour on 7/1/18
- $12.00 Portland metro area
- $10.75 urban counties
- $10.50 rural counties on 7/1/18
*Local laws may require different minimum wage rates.
What Employers Can Do Now:
Get Your Scheduling Down to a Science: Analyze your most crucial shifts and recognize the strongest members of your staff in order to strategically schedule your team (tools like Harri's TeamLive can help managers and operators with schedule alignment, labor costs, and budget).
Consider Adjusting Your Hours: By tracking your stores’ sales patterns, you may gain valuable insights to determine the working hours that are most productive for your business. For example, if you frequently experience a spike in customers/sales around lunch Monday through Friday, but find there's a slump during evenings on the same days, you may want to consider closing earlier during the week and focusing your marketing efforts towards weekday lunch. (Pro Tip: Your POS weekly and monthly reports should be a great indicator of these trends.)
Take a Close Look at Menu Item Prices: This is a last-ditch but sometimes necessary effort to combat minimum wage increases. Analyze each menu item and break it down by cost (with the help of your culinary team), and consider comparing vendors. Know that you may lose some customers at the expense of your menu changes. If you decide to increase your menu prices, communicate to your guests that your business has done so in order to stay open, pay your employees fair wages, and continue to serve them!