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. |