Minimum Wage Rate Increases for 2016
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Quick Facts:
- The minimum wage rate will increase in 14 states by January 1, 2016.
- Additional minimum wage rate increases are expected in three jurisdictions for the summer of 2016.
- Eight states have announced unchanged minimum wage rates for 2016.
- Employers should review employee wage rates and workplace required postings to ensure compliance with state law.
Most employers in the United States are subject to the minimum wage provisions of the Federal Labor Standards Act (FLSA). The FLSA's minimum wage rate is $7.25 per hour. However, many states have adopted minimum wage rates higher than the federal rate.
Increasing Minimum Wage Rates:
The table below presents a list of minimum wage rates that will become effective early in 2016.
Proposed 2016 minimum wage rate
State | New Rate | Effective Date |
NY | $9.00 | Dec. 31, 2015 |
AK | $9.75 | Jan. 1, 2016 |
AR | $8.00 | Jan. 1, 2016 |
CA | $10.00 | Jan. 1, 2016 |
CO | $8.31* | Jan. 1, 2016 |
CT | $9.60 | Jan. 1, 2016 |
HI | $8.50 | Jan. 1, 2016 |
MI | $8.50 | Jan. 1, 2016 |
NE | $9.00 | Jan. 1, 2016 |
RI | $9.60 | Jan. 1, 2016 |
SD | $8.55 | Jan. 1, 2016 |
VT | $9.60 | Jan. 1, 2016 |
WV | $8.75 | Jan. 1, 2016 |
Increases in the minimum wage rate are also expected in Washington D.C., Maryland and Minnesota for the summer of 2016. When state rates and the federal rate are different, employers must pay their employees the higher rate. Employers affected by the higher wage rates that have been announced should review their employees' pay rates and update their minimum wage poster notices to ensure compliance with state wage and hour laws.
Unchanged Minimum Wage Rates
Some states update their minimum wage rates to reflect the rise in inflation. For 2016, eight states have announced that their minimum wage rate will remain unchanged, at 2015 levels.
State | Hourly Rate |
AZ | $8.05 |
FL | $8.05 |
MO | $7.65 |
MT | $8.05 |
NJ | $8.38 |
OH | $8.10 |
OR | $9.25 |
WA | $9.47 |
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