Minimum Wage Increases for 2019

The Bennett Law Firm, P.A.
New Hampshire

As we come to the close of the year, employers need to be aware of upcoming increases for next year. Many states and municipalities have enacted increases in minimum wage rates that will take effect as early as December 31, 2018.

The current federal minimum wage is $7.25 per hour, and has not increased since July 2009. However, some states, cities, and counties have a higher minimum wage rate. When the state, city or county minimum wage rate is higher than the federal rate, employers are required to pay workers the higher amount. The following chart reflects the general minimum wage rate for New England states, New York and Pennsylvania.

Jurisdiction	Effective	2018 Rate	2019 Rate
Connecticut	Unchanged	$10.10
Maine	January 1, 2019	$10.00	$11.00
Maine: Portland	July 1, 2019	$10.90	$11.00
Massachusetts	January 1, 2019	$11.00	$12.00
New Hampshire (Federal Minimum)	Unchanged	$7.25
New York: New York City (11 or More Employees)	December 31, 2018	$13.00	$15.00
New York: New York City (10 or Fewer Employees)	December 31, 2018	$12.00	$13.50
New York: Nassau, Suffolk & Westchester Counties	December 31, 2018	$11.00	$12.00
New York: Remainder of State	December 31, 2018	$10.40	$11.10
New York: Fast Food Worker (New York City)	December 31, 2018	$13.50	$15.00
New York: Fast Food Worker (Elsewhere)	December 31, 2018	$11.75	$12.75
Rhode Island	January 1, 2019	$10.10	$10.50
Pennsylvania (Federal Minimum)	Unchanged	$7.25
Pennsylvania: Philadelphia	Unchanged	$12.10
Vermont	January 1, 2019	$10.50	$10.78

Tipped Rate Increases

In certain places, employers may be able to count tips an employee receives toward the minimum wage. In these jurisdictions, if the direct wage an employer pays an employee plus tips equals the minimum wage, an employer’s minimum wage obligation has been met. But, if the direct wage plus tips does not equal the minimum wage, an employer must pay the employee the difference. Directly below is the minimum cash wage that may be paid, and the maximum tip credit that can be claimed, for covered tipped employees. *We are only noting those states or municipalities that have upcoming changes. Finally, because New York has varying standards, the numbers are included in a stand-alone section after the below chart.

Jurisdiction	Increase Date	2018 Minimum Cash Wage	2019 Minimum Cash Wage	2018 Tip Credit	2019 Tip Credit
Maine	January 1, 2019	$5.00	$5.50	$5.00	$5.50
Maine: Portland	January 1, 2019	$5.00	$5.50	$5.90	$5.50
Massachusetts	January 1, 2019	$3.75	$4.35	$7.25	$7.65
Rhode Island	January 1, 2019	$3.89	No change	$6.21	$6.61
Vermont	January 1, 2019	$5.25	$5.39	$5.25	$5.39

New York Tip Rates

Below is the generally applicable tip standard, followed by the hospitality industry, which may vary depending on an employee’s role and place of employment. *If an employee’s weekly tip average is between the Low (L) and High (H) amounts, the tip credit cannot exceed the Low amount. If an employee’s weekly tip average equals or exceeds the High amount, the tip credit cannot exceed the High amount.

Jurisdiction	Increase Date	Minimum Cash Wage	Tip Credit
New York City (11 = Employees)	December 31, 2018	$12.75 (L) $11.35 (H)	$2.25 (L) $3.65 (H)
New York City (10 or less Employees	December 31, 2018	$12.75 (L) $11.35 (H)	$2.25 (L) $3.65 (H)
Nassau, Suffolk & Westchester Counties	December 31, 2018	$11.05 (L) $ 9.80 (H)	$1.95 (L) $3.20 (H)
Remainder of New York State	December 31, 2018	$ 9.45 (L) $ 8.40 (H)	$1.65 (L) $2.70 (H)