Client Tip for December 2018: Minimum Wage
Effective January 1, 2019, the minimum wage in several states will be increasing. Federal law provides that companies who are engaged in the retail or service industry whose annual gross receipts are less than $500,000 are not required to pay the state minimum wage rate. The Federal minimum rate is $7.25 per hour (last increased July 2009). When the state minimum wage rate is higher than the federal rate, workers are paid the higher rate.
Missouri’s minimum rate is increasing to $8.60 (currently $7.85) per hour beginning January 1, 2019. Pursuant to Proposition B, which was passed by the voters on November 6, 2018, the minimum wage will increase 85 cents each year through 2023 ($12 for 2023). Compensation for tipped employees is required to be at least 50 percent of the minimum wage, plus any amount necessary to bring the employee’s total compensation to a minimum of $8.60 per hour.
The minimum wage in Illinois for adults over the age of 18 who are no longer probationary remains at $8.25 per hour for 2019. Its higher in Chicago where the minimum wage is $12.00 per hour and will increase to $13.00 per hour in July 2019.
Click here to see updated information: ls-52-ai-2019