Insights

Home > News & Insights > Insights > New Year, New Pay: States and Cities Enact Minimum Wage Increases in 2016

Share this on:   a b j c

New Year, New Pay: States and Cities Enact Minimum Wage Increases in 2016

Published by and on February 5, 2016

The New Year invariably delivers a wide range of new laws that employers must keep track of and often make accommodations to properly implement. For 2016, one major category of legislation taking effect is minimum wage increases, at the state, county and city levels.

The New Year invariably delivers a wide range of new laws that employers must keep track of and often make accommodations to properly implement. For 2016, one major category of legislation taking effect is minimum wage increases for 13 states, as well as a number of cities and counties.

Several states and cities also have minimum wage increases that are scheduled to take effect later this year as well. These minimum wage increases affect employees that are entitled to overtime pay under the FLSA and similar state laws.

Employees who are currently treated as exempt from overtime provisions may also be affected by these increases, as the minimum weekly salary that an employee must earn to be properly classified as exempt may have also increased in jurisdictions that have adopted laws that are different than the federal Fair Labor Standards Act (FLSA).

As a result, employers that operate in those locations should assess thoroughly to ensure that increases in state or local minimum wage rates do not impact the classification of their employees. Some of the new minimum wage increases across the United States include the following:

State Minimum Wage Increases

As of January 1, 2016
State2015 Minimum Wage
(per hour)
2016 Minimum Wage
(per hour)
Alaska$8.75$9.75
Arkansas$7.50$8.00
California$9.00$10.00
Connecticut$9.15$9.60
Hawaii$7.75$8.50
Massachusetts$9.00$10.00
Michigan$8.15$8.50
Nebraska$8.00$9.00
New York$8.75$9.00 (as of 12/31/15)
Rhode Island$9.00$9.60
South Dakota$8.50$8.55
Vermont$9.15$9.60
West Virginia$8.00$8.87 (as of 12/31/15)

City & County Minimum Wage Increases

As of January 1, 2016
City or County2015 Minimum Wage
(per hour)
2016 Minimum Wage
(per hour)
Mountain View, CA$10.30$11.00
Oakland, CA$12.25$12.55
Palo Alto, CAN/A$11.00
Richmond, CA$9.60$11.52
Santa Clara, CA$9.00$11.00
Lexington, KY$7.25$7.75
Louisville, KY$7.25$7.75
Portland, ME$7.50$10.10
Seattle, WA$10.00 or $11.00 (based on employer size)$10.50, $12.00 or $13.00 (based on employer size and contribution to medical benefits)

For a list of states and cities that will have minimum wage increases throughout the year, follow the link below for a full review by the Society for Human Resource Management (SHRM):

Image Credit: GoodJobsUpNorth (Flickr @ Creative Commons)

 

Topics: , , , , ,

Share:   a b j c