State Minimum Wages Increase in the New Year

By Megan Black and Susan Milner Parrott

Although the minimum wage under the federal Fair Labor Standards Act (FLSA) remains the same for 2016, the minimum wage increases under the laws of 14 states. Currently, 29 states and the District of Columbia have minimum wage rates higher than the federal minimum wage of $7.25 per hour. 

The minimum wages by state as of January 1, 2016 are shown below:

• Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Minnesota (if employer has annual receipts of less than $500,000), Mississippi, Nevada (if employer provides health benefits), New Hampshire, North Carolina, North Dakota, Ohio (if employer grosses $297,000 or less annually), Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Wisconsin, Wyoming – $7.25 (Federal Minimum)
• Maine, New Mexico – $7.50
• Missouri – $7.65
• Arkansas* – $8.00
• Arizona, Florida, Montana – $8.05
• Ohio (if employer grosses over $297,000 annually) – $8.10
• Delaware, Illinois, Maryland, Nevada (if not providing health benefits) – $8.25
• Colorado* – $8.31
• New Jersey – $8.38 
• Hawaii,* Michigan* – $8.50 
• South Dakota* – $8.55 
• West Virginia* – $8.75 
• Minnesota (if employer has annual receipts of $500,000 or more), Nebraska,* New York^ – $9.00 
• Oregon – $9.25
• Washington – $9.47 
• Connecticut,*  Rhode Island,* Vermont* – $9.60  
• Alaska* – $9.75
• California,* Massachusetts* – $10.00  
• District of Columbia – $10.50  

Additionally, an increasing number of localities across the country have implemented minimum wage rates higher than the federal minimum wage.

Employers will need to continue to be aware of these changes and monitor their pay practices in each of their locations to ensure compliance with all applicable wage and hour laws. Employers also should ensure that employees receive all required notifications regarding the applicable minimum wage or wage rate changes. 

Additional minimum wage information can be obtained from the U.S. Department of Labor’s website or applicable state labor agency.  

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* effective as of January 1, 2016
^ effective as of December 31, 2015