Effective January 1, 2017, Missouri’s minimum wage will rise from the current $7.65 per hour to $7.70 per hour. The increase in the minimum wage is the result of a 2006 Missouri law requiring an annual cost of living review to determine if the minimum wage will be adjusted. Missouri’s minimum wage has risen gradually since the law first took effect in 2007 when the minimum wage was $6.50 per hour. The 2017 increase also affects the rate of pay for tipped employees, who must be paid at one-half the minimum wage rate, or $3.85 per hour. Note: if the tipped employee does not make up the other half of the minimum wage in tips, then the employer is required to pay the difference so that the tipped employee is paid at least the $7.70 per hour minimum wage. Missouri employers engaged in retail or service businesses whose annual gross income is less than $500,000 are not required to pay the state minimum wage rate.
In Illinois, the minimum wage remains at the current rate of $8.25 per hour for individuals over 18 years of age, although exceptions apply to the first 90 days of work for both tipped and non-tipped employees. In Illinois, tipped employees must be paid minimum wage, but an employer may take credit for the employee’s tips in an amount not to exceed 40% of the wages.
The Federal minimum wage will remain at $7.25 per hour. Covered employers are reminded that, if the state minimum wage is higher than the federal minimum wage, the higher of the two must be paid.
Missouri’s minimum wage increase is not alone as a total of 22 states and the District of Columbia have increased minimum wage rates for 2017. Below is a list of those wage increases.
- Alaska: $9.80 per hour effective January 1, 2017.
- Arizona: $10.00 per hour effective January 1, 2017.
- Arkansas: $8.50 per hour effective January 1, 2017.
- California: $10.00 per hour for employers with fewer than 26 employees, and $10.50 per hour for employers with 26 or more employees, both effective January 1, 2017.
- Colorado: $9.30 per hour effective January 1, 2017.
- Connecticut: $10.10 per hour effective January 1, 2017.
- District of Columbia: $12.50 per hour effective July 1, 2017.
- Florida: $8.10 per hour effective January 1, 2017.
- Hawaii: $9.25 per hour effective January 1, 2017.
- Maine: $9.00 per hour effective January 1, 2017.
- Maryland: $9.25 per hour effective July 1, 2017.
- Massachusetts: $11.00 per hour effective January 1, 2017.
- Michigan: $8.90 per hour effective January 1, 2017.
- Montana: $8.15 per hour if the employer’s annual sales are more than $110,000, effective January 1, 2017; $7.25 per hour (Federal minimum wage) for all other employers.
- New Jersey: $8.44 per hour effective January 1, 2017.
- New York: $11.00 per hour for employers in NYC with 11 or more employees; $10.50 per hour for employers in NYC with 10 or fewer employees; $10.00 per hour for employers in Long Island and Westchester; and $9.70 per hour for employers in the remainder of New York. New York also has a separate minimum wage for fast food workers ranging from $10.00-$12.00 per hour depending on the employer’s location. The new minimum wages rates are effective December 31, 2016.
- Ohio: $8.15 hour if the employer’s annual gross receipts are more than $297,000, effective January 1, 2017; $7.25 per hour for all other employers.
- Oregon: $10.25 per hour effective June 30, 2017.
- South Dakota: $8.65 per hour effective January 1, 2017.
- Vermont: $10.00 per hour effective January 1, 2017.
- Washington: $11.00 per hour effective January 1, 2017.
Employers are encouraged to contact a McMahon Berger attorney before implementing any changes in employee pay, as each employer’s circumstances are unique and state laws vary in their application and scope. In addition, there may be new posting requirements as a result of the above changes. Check your state’s labor department’s website for updated poster information.
The St. Louis employment attorneys at McMahon Berger have been representing employers across the country in labor and employment matters for over 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.