January 1 saw the minimum wage increase in 14 states: Alaska, Arkansas, California, Colorado, Connecticut, Hawaii, Massachusetts, Michigan, Nebraska, New York, Rhode Island, South Dakota, Vermont, and West Virginia. This summer will see minimum wage increases in D.C., Maryland, and Minnesota. Several municipal rates are set to increase during 2016, including Berkley, Emeryville, Richmond, San Francisco, Louisville, Seattle, and Tacoma.
The push for $15 minimum wage has been in the news. While it has been getting a lot of press, almost all the action here has been on the municipal level and almost every proposal and planned increase the move to a $15 minimum wage is an incremental process spanning several years.
2016 Minimum Wage Chart
See the chart below for minimum wage changes effective January 1, 2016 as well as states with minimum wage changes set to take effect at later dates in 2016.
States Increasing Minimum Wage in 2016
State |
2015 Minimum Wage |
2016 Minimum Wage(effective January 1, 2016) |
2016 Minimum Wage(effective after January 1, 2016) |
| 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 | |
| Maryland | $8.25 | $8.75 (effective July 1, 2016) | |
| Massachusetts | $9.00 | $10.00 | |
| Michigan | $8.15 | $8.50 | |
| Minnesota | $9.00/$7.25 (large employer/small employer) |
$9.50/$7.75 (effective August 1, 2016) |
|
| Nebraska | $8.00 | $9.00 | |
| New York | $8.75 | $9.00 | |
| Rhode Island | $9.00 | $9.60 | |
| South Dakota | $8.50 | $8.55 | |
| Vermont | $9.15 | $9.60 | |
| District of Columbia | $10.50 | $11.50 (effective July 1, 2016) | |
| West Virginia | $8.00 | $8.75 |
Please be aware that a number of cities and counties have their own minimum wage and many of those are also increasing on January 1, 2016. OnePoint HR Support Center Subscribers can access city and county wage information by state by going to: HR Answerlink>Laws>At a Glance>Select State>Minimum Wage.
Additionally, minimum wage increases may also affect exempt employees. Under some exemptions laid out by the Fair Labor Standards Act (FLSA), the criteria is based on various requirements including a minimum salary of $455 a week. In some states, employers must base the minimum salary for exempt or non-exempt status on the state or local minimum wage. Make certain exempt/non-exempt status has not been affected by minimum wage increases.