New Minimum Wage Laws Take Effect for Small Businesses in 18 States

New 2018 Minimum Wage Laws Take Effect at Small Businesses in 18 States

The new year 2018 is upon us and if you have hourly wage employees at your small business, there’s nearly a 50-50 chance you’ll be paying them more right away.

A total of 18 states have raised the minimum wage for hourly employees, effective Jan. 1, 2018, according to information from the Labor Law Center.

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2018 Minimum Wage Increases (so far…)

The following states increased their minimum wage on New Year’s Day 2018:


Workers in Alaska must now be paid a minimum wage of $9.84, up just 4 cents from the rate in 2017.


The minimum wage in Arizona is now $10.50. In 2017, it was an even $10 per hour.


There is a special rate for small businesses in California. Companies with 25 or less employees now have to pay $10.50 per hour.

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The minimum wage rose nearly $1 per hour overnight in Colorado. It’s now at $10.20. It had been $9.30.


Workers making minimum wage in Florida must now get $8.25 an hour. They were making $8.10 hourly.


In Hawai’i, the hourly minimum wage is $10.10 now. It was $9.25 in 2017.


Downeasters must now get paid at least $10 per hour. Last year, Mainers made $9 per hour under the state’s minimum wage.


From Detroit to the U.P., the minimum wage in Michigan rose from $8.90 to $9.25 with the dawn of 2018.


The minimum wage for small businesses in Minnesota is at $7.87 but for bigger companies, it’s $9.65.


Minimum wage employees must now get $7.85 per hour in the Show Me State. In 2017, the rate was $7.70.


The minimum wage also rose 15 cents in Montana. It’s now at $8.30 per hour when it had been $8.15 in 2017.

New Jersey

Hourly workers in The Garden State must now get $8.60 per hour. In 2017, the minimum wage was $8.44.

New York

New York is another state with several local minimum wages in place. However, statewide, the minimum wage is now $10.40 per hour. Last year, it was $9.70.


This is another state with a modest 15-cent raise in the minimum wage, from $8.15 to $8.30 per hour.

Rhode Island

Minimum wage workers in The Ocean State must now get $10.10 per hour, up 50 cents from 2017’s $9.60 per hour rate.

South Dakota

The minimum wage went up in South Dakota on New Year’s Day from $8.65 to $8.85.


If you’ve got hourly employees in Vermont, they must now get $10.50 per hour, up from the $10 per hour minimum in 2017.


In conclusion, minimum wage in Washington also rose 50 cents, now at $11.50 in 2018. Last year, it was $11.

The federal minimum wage remains at $7.25 and hasn’t changed since 2009.

Photo via Shutterstock 3 Comments ▼

Joshua Sophy Joshua Sophy is the Editor for Small Business Trends and the Head of Content Partnerships. A journalist with 20 years of experience in traditional and online media, he is a member of the Society of Professional Journalists. He founded his own local newspaper, the Pottsville Free Press, covering his hometown.

3 Reactions
  1. But there is still the online workers that can work for below that. So I guess they are not counted.

  2. Right. This still doesn’t apply online. Freelancers are still willing to work at lower prices.

  3. I think it is about choosing which processes to outsource and which to hire for.