In the last few days, several states tied to the Consumer Price Index (CPI) have officially announced their 2018 minimum wage rates. CPI is a measure of the average change in prices of goods and services purchased by households over time. Each year, these states adjust their minimum wage rates for an increase in the CPI over the last year. States determine the minimum wage by taking the current minimum wage and increasing it by the CPI increase from August 2016 to August 2017. The CPI increased by 1.9 percent over the year ending August 2017.
The following states have announced their 2018 minimum wage rates:
- Minnesota – $9.65 per hour for large employers and $7.87 per hour for other state minimum wages
- Montana – $8.30 per hour
- New Jersey – $8.60 per hour
- Ohio – $8.30 per hour for non-tipped workers and $4.15 per hour for tipped workers
Compliance Poster Company will be updating the minimum wage notices to reflect the new rates. Stay tuned for mandatory poster updates!