Product Updates

Minimum Wage Increases with FLSA Planning

FLSA overtime rule changes will require most employers to complete a thorough analysis on employee wages. As part of the analysis, minimum wage increases, at both the state and local level, should be considered as part of the overall review of current employee salary and compensation.

Although none of the minimum wage changes push anyone to the new $47,747 minimum salary threshold, it is logical to consider the minimum compensation level when discussing potential compensation changes for any employee.  While reviewing employee salaries and job duties for FLSA changes, minimum wages can affect decisions to change employee status or make changes to job duties for future roles and hiring.

There are a few increases that took place this July, and there are some increases coming January 1, 2017, which is  just one month after FLSA compliance deadlines.  Below is a summary table of these changes for your quick reference.

Minimum Wage Increases July 1, 2016 – January 1, 2017

Increases Scheduled for July 1, 2016

States 
Oregon $9.25 to $9.75, effective July 1, 2016
Maryland $8.25 to $8.75, effective July 1, 2016
District of Columbia $10.50 to $11.50, effective July 1, 2016
Municipalities
Emeryville (CA) $14.44 to $14.82, effective July 1, 2016
LA County (CA) $10.00 to $10.50, effective July 1, 2016
San Francisco (CA) $12.25 to $13.00, effective July 1, 2016
Santa Monica (CA) $10.00 to $10.50, effective July 1, 2016

Increases Scheduled for August 1, 2016

States
Minnesota Lrg employers: $9.00 to $9.50, effective August 1, 2016
Small employers: $7.75, effective August 1, 2016

Increases Scheduled October 1, 2016

Municipalities 
Berkeley (CA) $11.00 to $12.53, effective October 1, 2016

Increases Scheduled December 31, 2016 / January 1, 2017

States
Arkansas $8.00 to $8.50, effective January 1, 2017
California $10.00 to $10.50, effective January 1, 2017
Connecticut $9.60 to $10.10, effective January 1, 2017
Hawaii $8.50 to $9.25, effective January 1, 2017
Massachusetts $10.00 to $11.00, effective January 1, 2017
Michigan $8.50 to $8.90, effective January 1, 2017
New York $9.00 to $9.70, effective December 31, 2016
Vermont $9.60 to $10.00, effective January 1, 2017
Municipalities
Mountain View (CA) $11.00 to $13.00, effective January 1, 2017
Richmond (CA) $11.52 to $12.30, effective January 1, 2017
Las Cruces (NM) $8.40 to $9.20, effective January 1, 2017
New York City (NY) $9.00 to $11.00, effective December 31, 2016
Nassau, Suffolk, and Westchester Counties (NY) $9.00 to $10.00, effective December 31, 2016

This chart was compiled based on data available in July, 2016 from the Department of Labor website and the Economic Policy Institute Website.