iIn 2016, 17 states and the District of Columbia implemented increased minimum wage rates. This year, even more states are scheduled to do so.
Federal Minimum Wage for 2017
The federal minimum wage will remain at $7.25 per hour for non-tipped employees and $2.13 per hour for tipped employees.
State and City Minimum Wage Increases for 2017
The following table summarizes the minimum wage increases for 2017 in affected states and some noteworthy cities, along with the related changes to the maximum tip credit and minimum cash wage for tipped employees (changes in bold text):
|
|
Minimum Wage |
Max Tip Credit |
Minimum Cash Wage |
|
Alaska |
$9.75 (current) |
Tip credit not allowed |
Tip credit not allowed |
|
Arizona |
$8.05 (current) |
$3.00 (set credit amount) |
$5.05 (current) |
|
Arkansas |
$8.00 (current) |
$5.37 (current) |
$2.63 (unchanged) |
|
California |
$10.00 (current) $10.50 (effective Jan. 1, 2017) |
Tip credit not allowed |
Tip credit not allowed |
|
Colorado |
$8.31 (current) |
$3.02 (unchanged) |
$5.29 (current) |
|
Connecticut |
$9.60 (current) $10.10 (effective Jan. 1, 2017) |
The maximum tip credit for hotel and restaurant workers is 36.8 percent of the current minimum wage ($3.53); 18.5 percent for bartenders ($1.78); and $0.35 per hour for employees in any other industry. Effective Jan. 1, 2017, the maximum tip credit for hotel and restaurant workers will be 36.8 percent of the 2017 state minimum wage ($3.71); 18.5 percent for bartenders ($1.87); and $0.35 per hour for employees in any other industry. |
The current minimum cash wage is set at $6.07 for hotel and restaurant workers; $7.83 for bartenders; and $9.25 for all others. Effective Jan. 1, 2017, it will be $6.39 for hotel and restaurant workers; $8.23 for bartenders; and $9.75 for all others. |
|
District of Columbia |
$11.50 (current) |
$8.73 (current) |
$2.77 (current) |
|
Florida |
$8.05 (current) |
$3.02 (unchanged) |
$5.03 (current) |
|
Hawaii |
$8.50 (current) |
$0.75 provided that wages plus tips are at least $7.00 more than the applicable minimum wage |
$7.75 (current) |
|
Maine |
$7.50 (current) |
$3.75 (current) |
$3.75 (current) |
|
Maryland |
$8.75 (current) |
$5.12 (current) |
$3.63 (unchanged) |
|
Massachusetts |
$10.00 (current) |
$6.65 (current) |
$3.35 (current) |
|
Michigan |
$8.50 (current) |
$5.27 (current) |
$3.23 (current) |
|
Missouri |
$7.65 (current) |
$3.82 (current) |
$3.83 (current) |
|
Montana |
$8.05 (current) |
Tip credit not allowed |
Tip credit not allowed |
|
New Jersey |
$8.38 (current) |
$6.25 (current) |
$2.13 (unchanged) |
|
New York |
$9.00 (current) |
$1.50 for all hospitality positions (current)
$2.20 for all hospitality positions (effective Dec. 31, 2016) |
$7.50 for all hospitality positions (effective Dec. 31, 2016) |
|
Ohio |
$8.10 (current) |
$4.05 (current) |
$4.05 (current) |
|
Oregon |
The base minimum wage rates are as follows: $9.75 (current) |
Tip credit not allowed |
Tip credit not allowed |
|
South Dakota |
$8.55 (current) |
$4.27 (current) |
$4.28 (current) |
|
Vermont |
$9.60 (current) |
$4.80 (current) |
$4.80 (current) |
|
Washington |
$9.47 (current) $11.00 (effective Jan. 1, 2017)
|
Tip credit not allowed |
Tip credit not allowed |
Employers may want to take note of these changes and prepare to implement them as necessary in their businesses.
