Stephen B. Maule

Stephen B. Maule Partner

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MANY JURISDICTIONS INCREASE THEIR MINIMUM WAGE RATES IN 2016 AND BEYOND

STATE RATE EFFECTIVE FUTURE INCREASES
Alaska $9.75 January 1, 2016  
Arkansas $8.00 January 1, 2016 $8.50 in 2017
California $10.00 January 1, 2016  
Colorado $8.31 January 1, 2016  
Connecticut $9.60 January 1, 2016 $10.10 in 2017
Hawaii $8.50 January 1, 2016 $9.25 in 2017

$10.10 in 2018

Maryland $8.75 July 1, 2016 $9.25 in 2017

$10.10 in 2018

Massachusetts $10.00 January 1, 2016 $11.00 in 2017
Michigan $8.50 January 1, 2016 $8.90 in 2017

$9.25 in 2018

Minnesota $9.50 for large employers

$7.75 for small employers

August 1, 2016 Annual indexed increases to begin in 2018
Nebraska $9.00 January 1, 2016  
Rhode Island $9.60 January 1, 2016  
South Dakota $8.55 January 1, 2016  
Vermont $9.60 January 1, 2016 $10.00 in 2017

$10.50 in 2018

West Virginia $8.75 January 1, 2016  

 

Employers need to ensure that they are in compliance with federal, state and local minimum wage requirements. While the federal minimum wage remains at $7.25 per hour, some states have raised minimum wage rates.  In addition, several major cities will increase minimum wages well in excess of state or federal requirements, including Birmingham, Alabama ($8.50 effective July 1, 2016), Chicago, Illinois ($10.50 effective July 1, 2016), Louisville, Kentucky ($8.25 effective July 1, 2016), and Seattle, Washington (up to $13.00 for larger employers who offer health benefits).  The District of Columbia will see an increase to $11.50 effective July 1, 2016.

President Obama has called upon Congress to consider raising the federal minimum wage to $10.10, which would preempt state minimum wages below that.  Employees of federal contractors and subcontractors will be entitled to a minimum rate of $10.15 effective January 1, 2016.

“The St. Louis employment attorneys at McMahon Berger have been representing employers across the country in labor and employment matters for sixty years, and are available to discuss these issues and others.  As always, the foregoing is for informational purposes only and does not constitute legal advice regarding any particular situation as every situation must be evaluated on its own facts. The choice of a lawyer is an important decision and should not be based solely on advertisements.”

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