What the Minimum Wage Was in Massachusetts in 2018
On January 1, 2018, the Massachusetts minimum wage rose to $11.00 per hour. This increase was part of a phased schedule established by a 2014 ballot measure that adjusted the wage annually until reaching $15.00 for most employers on January 1, 2023. In 2018, the wage remained level at $11.00 for the calendar year before moving to $12.00 on January 1, 2019. This overview explains the 2018 rate, the multiyear phase-in timetable, covered workers and exemptions, and how Massachusetts compared with the federal wage and nearby states during that period.
2018 Minimum Wage Rate and Annual Schedule
The following table summarizes the key values and milestones for the state minimum wage relevant to 2018 and the years immediately before and after.
| Date or Period | Minimum Wage (Hourly) | Note |
|---|---|---|
| January 1, 2017 | $10.50 | Prior increase under the ballot measure |
| January 1, 2018 | $11.00 | Rate for all of calendar year 2018 |
| January 1, 2019 | $12.00 | Next scheduled increase |
| January 1, 2023 | $15.00 | Target for most employers under the law |
Because Massachusetts law ties future adjustments to inflation once the $15.00 threshold is reached, the wage trajectory after 2023 continues annually with cost-of-living adjustments.
Federal Law and the Effective Rate in 2018
In 2018, the federal minimum wage remained at $7.25 per hour, last raised in 2009. Because Massachusetts state law sets a higher wage, employers subject to both laws were required to pay the state rate of $11.00 per hour. The effective minimum wage for most workers in Massachusetts in 2018 was therefore the state level, not the federal level. Tipped workers had a separate base wage of $4.35 per hour, provided that tips brought their total earnings up to at least the full $11.00 per hour. If tips did not meet that threshold, employers were required to make up the difference.
Covered Workers, Exemptions, and Special Rules
The $11.00 hourly rate applied to most employees who worked in Massachusetts, but certain categories were exempt or treated differently. Key points include:
- Small tipped workers: Employers could pay a lower cash wage if tips made up the balance to at least the full minimum wage.
- Student learners and workers under 20: Permitted a lower wage of 85% of the full minimum (up to 90 days from hire for workers under 20) under specific training provisions.
- Farmworkers and seasonal workers: Subject to the same hourly minimum unless specific exemptions applied under Massachusetts regulations.
- Overtime: Non-exempt workers earning below a specified threshold typically received one and one-half times their regular rate for hours worked beyond 40 in a workweek.
Employers were responsible for ensuring compliance with both state and federal rules, using whichever standard provided the higher wage and greater benefit to the worker.
Comparison with Neighboring States in the Late 2010s
In 2018, Massachusetts had one of the higher minimum wages in the Northeastern United States. While the federal baseline was $7.25, nearby states had already adopted higher rates or were in the process of increasing wages through legislation or ballot measures. By the end of the decade, several states had moved toward or past the $15.00 target, but Massachusetts reached that milestone on the same schedule as many peers, completing its phase-in by 2023.
Implications for Workers and Employers in 2018
At $11.00 per hour, the 2018 minimum wage provided higher earnings for low-wage workers in Massachusetts compared with the federal rate. For a full-time worker, this translated to an annual gross income of approximately $22,880 before taxes, assuming consistent hours. Small businesses and service-sector employers needed to account for regular increases, because the law continued to adjust the wage through subsequent years until reaching $15.00. Understanding the schedule and exemptions helped both workers and employers anticipate changes and remain compliant.