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Although anticipated FLSA overtime rule changes have been put on hold, almost half of the United States will increase their state minimum wages in 2017. So, as an employer, what does that mean for you?
The Fair Labor Standards Act (FLSA) establishes the federal minimum wage, which is currently $7.25/hour ($2.13 for tipped employees). However, FLSA also stipulates that state or local laws supersede FLSA rules if the state or local laws are more favorable to the employee. In other words, employers must pay the state minimum wage if the state minimum wage is greater than $7.25/hour. And, as previously mentioned, almost half the country will increase state/local minimum wage in 2017. The table below highlights the minimum wages you can expect in 2017.
Note: Dates of the changes to minimum wage vary by State, dates are indicated in 'Additional Details' column.
Jurisdiction |
Hourly Minimum Wage |
Hourly Minimum Tipped Worker Wage
|
Additional Details |
| Federal | $7.25 | $2.13 | Federal injunction put changes on hold. |
| Federal new (sub) contractors | $10.20 | $6.80 | Effective Jan. 1, 2017 |
| Alabama | No state minimum wage laws. Federal laws apply. | ||
| Alaska | $9.80 | $9.80 | Effective Jan. 1, 2017 |
| Arizona | $10.00 | $7.00 | Changes effective Jan. 1, 2017. Minimum wage scheduled to increase annually to $12.00/hour; tipped wage increasing to $9.00/hour, by Jan. 2020. |
| Arkansas | $8.50 | $2.63 | Effective Jan. 1, 2017 |
| California | $10.50 | $10.50 | Changes effective Jan. 1, 2017. Minimum and tipped wage scheduled to increase annually to $15.00/hour by Jan. 2020. |
| Colorado | $9.30 | $6.28 | Changes effective Jan. 1, 2017. Minimum wage scheduled to increase annually to $12.00/hour; tipped wage increasing annually to $8.98, by Jan. 2020 |
| Connecticut | $10.10 | $6.07 | Effective Jan. 1, 2017 |
| Bartenders | $8.23 | Effective Jan. 1, 2017 | |
| Hotel, Restaurant | $6.38 | Effective Jan. 1, 2017 | |
| Delaware | $8.25 | ||
| New Castle County employees | $10.10 | ||
| District of Columbia | $12.50 | $3.33 | Changes effective July 1, 2017. Minimum wage scheduled to increase annually to $15.00/hour; tipped wage increasing to $5.00/hour, by July 2020. |
| Florida | $8.10 | $5.08 | Effective Jan. 1, 2017 |
| Georgia | $5.15 | $2.13 | Changes effective Jan. 1, 2017. Increasing to $10.10 in Jan. 2018. |
| Guam | $9.20 | ||
| Hawaii | $9.25 | $8.50 | Changes effective Jan. 1, 2017. Minimum wage scheduled to increase to $10.10 and tipping wage scheduled to increase to $19.35 in Jan. 2018. |
| Idaho | $7.25 | $3.35 | |
| Illinois | $8.25 | $4.95 | |
| Chicago | $11.00 | $5.95 | Effective July 1, 2017. Chicago increasing minimum wage to $13.00/hour by 2019. |
| Indiana | $7.25 | $2.13 | |
| Iowa | $7.25 | $4.35 | |
| Johnson County | $10.10 | $6.06 | Changes effective Jan. 1, 2017. |
| Polk County | $8.75 | $5.00 | Change effective April 1, 2017. Minimum wage increases to $10.75 by 2019. |
| Wapello County | $8.20 | $4.92 | Change effective January 1, 2017. Minimum wages increase to $10.10; tipped wages increased to $6.06, by 2019. |
| Kansas | $7.25 | $2.13 | |
| Kentucky | $7.25 | $2.13 | |
| State executive branch workers | $10.10 | ||
| State services contracts | $10.10 | ||
| Louisiana | No state minimum wage laws. Federal laws apply. | ||
| Maine | $9.00 | $5.00 | Changes effective Jan. 1, 2017. Minimum wage increasing to $12.00 by 2020; tipped wage increasing to 12.00 by 2024. |
| Portland | $10.68 | $6.35 | Effective Jan. 1, 2017. |
| Bangor | $8.25 | Effective Jan. 1, 2017 | |
| Maryland | $9.25 | $3.63 | Changes effective July 1, 2017. Minimum wage increasing to $10.10 in 2018. |
| Montgomery | $11.50 | $4.00 | Change effective July 1, 2017 |
| Prince George's County | $11.50 | $3.63 | Change effective October 1, 2017. |
| Massachusetts | $11.00 | $3.75 | Change effective Jan. 1, 2017. |
| Michigan | $8.90 | $3.38 |
Changes effective Jan. 1, 2017. Additional increase in minimum wage to $9.25/hour; increase to minimum tipped worker wage to $3.52 in 2018. Minors 16-17 years of age may be paid 85% of the minimum wage. A training wage of $4.25 per hour may be paid to workers 16 - 19 years of age for the first 90 days of employment. |
| Minnesota | |||
| Large employer | $9.50 | $9.50 | Companies with annual gross sales $500,000 or more. |
| Small employer | $7.75 | $7.75 | Companies with annual gross sales below $500,000. |
| Mississippi | No state minimum wage laws. Federal laws apply. | ||
| Missouri | $7.70 | $3.85 | Employers engaged in retail or service business whose annual gross income is less than $500,000 are not required to pay the state minimum wage rate |
| Montana | $8.15 | $815 | Effective Jan. 1, 2017 |
| Businesses with gross annual sales of $110,000 or less not covered by FLSA | $4.00 | ||
| Nebraska | $9.00 | $2.13 | |
| Nevada | $8.25 | $8.25 | |
| with a qualified health plan | $7.25 | ||
| New Hampshire | $7.25 | $3.26 | |
| New Jersey | $8.44 | $2.13 | Changes effective Jan. 1, 2017 |
| New Mexico | $7.50 | $2.13 | |
| Albuquerque | $8.80 | $5.30 | Albuquerque- minimum wage of $7.80 for employers who provide health care and/or childcare benefits equal to or more than $2,500 annually. |
| Bernalillo County | $8.70 | $2.13 | |
| Las Cruces | $9.20 | $3.68 | Changes effective Jan. 1 2017. Additional increase in minimum wage to $10.10/hour; increase to minimum tipped worker wage to $4.04 in 2020. |
| Santa Fe City | $10.97 | $2.13 | |
| Santa Fe County | $10.91 | $3.27 | |
| New York | $9.70 | $7.50 | Changes effective December 31, 2016. Additional increases to minimum wage to $12.50/hour by 2021; tipped wage increases to $8.35 by 2020. |
| New York City | $11.00 | $7.50 | New York City: Changes effective Dec. 31, 2016. Additional increases to minimum wage to $15.00/hour; tipped wage increases to $10.00, by 2018. |
| New York City employers with 10 or fewer employees | $10.50 | New York City: Changes effective Dec. 31, 2016. Additional increases to minimum wage to $15.00/hour by 2019. | |
| Fast food workers within New York City | 12.00 | New York City: Changes effective Dec. 31, 2016. Additional increases to minimum wage for fast food workers of $15.00/hour by 2018. | |
| Fast food workers outside of New York City | $10.75 | Changes effective Dec. 31, 2016. Additional increases to minimum wage for fast food workers of $15.00/hour by 2021. | |
| Nassau, Suffolk, and Westchester Counties | $10.00 | $7.50 | Changes effective Dec. 31, 2016. Additional increases to minimum wage to $15.00/hour; tipped wage increases to $10.00, by 2021. |
| North Carolina | $7.25 | $2.13 | |
| North Dakota | $7.25 | $4.86 | |
| Ohio | $4.08 | ||
| Large employer | $8.15 | Change effective Jan.1, 2017. Employers who gross over $297,000/year. | |
| Small employer | $7.25 | Employers who gross $297,000/year or less; or for employees under 16 years old, the federal minimum applies. | |
| Oklahoma | $7.25 | $2.13 | For employers with fewer than 10 full-time employees at any one location and who have gross annual sales of $100,000 or less, the minimum tipped worker rate is $2.00/hour. |
| Oregon | $10.25 | $10.25 | Change effective July 1, 2017. Minimum and tipped wage increases up to $13.50 by 2022. |
| Multnomah County employee | $15.00 | ||
| Milwaukie City employees | $15.00 | ||
| Portland City employees | $15.00 | ||
| Non-urban counties | $10.00 | $10.00 | Change effective July, 2017. Minimum and tipped wage increases up to $12.50 by 2022. |
| Portland urban growth boundary | $11.25 | $11.25 | Change effective July, 2017. Minimum and tipped wage increases up to $14.75 by 2022. |
| Pennsylvania | $7.25 | $2.83 | |
| Philadelphia City contractors and subcontractors | $12.00 | ||
| Puerto Rico | $5.08 - $7.25 | $2.13 | Varies by industry. |
| Rhode Island | $9.60 | $3.89 | |
| South Carolina | No state minimum wage laws. Federal laws apply. | ||
| South Dakota | $8.65 | $4.325 | |
| Tennessee | No state minimum wage laws. Federal laws apply. | ||
| Texas | $7.25 | $2.13 | |
| Utah | $7.25 | $2.13 | |
| Vermont | $10.00 | $5.00 | Changes effective Jan. 1, 2017. Minimum wage increases to $10.50 and minimum tipped wage increases to $5.25 in 2018. |
| Virginia | $7.25 | $2.13 | |
| Virgin Islands | $9.50 | $3.80 | |
| Businesses with gross annual sales of $150,000 or less | $6.90 | ||
| Washington | $11.00 | $11.00 | Changes effective January 1, 2017. Minimum wage and tipped wage increases to $13.50 in 2018. |
| Seatec | $15.34 | $15.34 | Changes effective January 1, 2017. |
| Seattle small employers | $11.00 | $11.00 | Seattle: Changes effective January 1, 2017. Will increase to $15.00 by 2021 and will match schedule 1 (large) employers as of 2025. |
| Seattle large employers | $15.00 | $15.00 | Changes effective January 1, 2017. Seattle employers with 500 or more employees and who do not provide health care benefits. Minimum wage will increase annually by a percentage that reflects the rate of inflation. |
| Seattle large employers who provide medical benefits | $13.50 | $13.50 | Seattle: Changes effective January 1, 2017. Seattle employers with 500 or more employees and who do provide health care benefits. Minimum wage will increase to $15.00 on Jan. 1, 2018. As of Jan. 1, 2019 payment toward a medical benefits plan will no longer impact the employer’s minimum wage obligation. |
| West Virginia | $8.75 | $2.63 | Minimum wage is not specified for state agencies and employers with six or fewer employees. |
| Wisconsin | $7.25 | $2.33 | Minimum rate of $2.13 for employees under 20 for the first 90 days of employment. |
| Wyoming | $5.15* | $2.13 | * Federal minimum wage applies. |
Like many aspects of managing employees, minimum wage is often more complicated than you might expect. Let us know if you would like help maneuvering state vs. federal minimum wage.
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