In 2018, the federal minimum wage will remain at $7.25 per hour for non-tipped employees and $2.13 per hour for tipped employees. The following table summarizes the statewide minimum wage increases that have been announced for 2018, along with the related changes to the maximum tip credit permitted and minimum cash wage allowed for tipped employees:
Employers may also be affected by local minimum wage ordinances with heightened requirements and exceptions to statewide minimum wage obligations. Further, employers covered by the Fair Labor Standards Act in states with maximum tip credits that exceed the federal tip credit of $5.12 per hour may want to carefully consider their obligations under federal law. Note also that the DOL recently published new proposed regulations concerning tips so there could be changes to the federal regulations in 2018.
Click here to view the table.