According to state law, all businesses are now required to pay a minimum hourly rate of $7.85. This is an increase from the previous minimum wage rate of $7.70. The new law does provide exemption for both retail and service businesses whose gross annual sales equal less than $500,000.
For employers with tipped employees, their compensation must total a minimum of $7.85 per hour as well. Such employers are required by state law to pay tipped employees no less than 50% of the minimum wage, or the amount necessary to bring the employee’s total compensation to the state minimum wage rate.