After ringing in 2016, employers may want to skip the eggnog and check their wages to make sure they are properly paying their employees. On Jan. 1, the minimum wage rates in 14 states went up and all are higher than the federal minimum wage. These states and rate increases include:
|
Alaska |
$9.75 per hour |
|
Arkansas |
$8.00 per hour |
|
California |
$10.00 per hour |
|
Connecticut |
$9.60 per hour |
|
Hawaii |
$8.50 per hour |
|
Massachusetts |
$10.00 per hour |
|
Michigan |
$8.50 per hour |
|
Nebraska |
$9.00 per hour |
|
New York |
$9.00 per hour |
|
Rhode Island |
$9.60 per hour |
|
Vermont |
$9.60 per hour |
|
West Virginia |
$8.75 per hour |
The minimum wage rates in both Colorado and South Dakota will increase due to a cost of living adjustment tied to inflation. For 2016, Colorado’s minimum wage is $8.31 per hour and South Dakota’s minimum wage now is $8.55 per hour.
Other notable minimum wage increases that will occur throughout 2016 include:
|
District of Columbia |
$11.50 per hour, effective July 1, 2016
|
|
Maryland |
$8.75 per hour, effective July 1, 2016 |
|
Minnesota |
$9.50 per hour for large employers, effective August 1, 2016
$7.75 per hour for small employers, effective August 1, 2016
|
Finally, for employers who have federal service contracts, the minimum wage for employees has increased to $10.15 per hour. These employers should pay close attention to the hourly rates in effect for the applicable contract as some rates will be higher than the minimum wage rate.
© 2015 BARNES & THORNBURG LLP
