September 23, 2020

Volume X, Number 267

September 23, 2020

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State and Local Minimum Wages Set to Increase in 2016

As we look towards the New Year, employers with locations in various jurisdictions should be mindful of state and local minimum wage increases that will soon take effect.

Some of these increases are a result of laws that tie wages to an economic index (generally the Consumer Price Index). Others are the result of recent legislation.

Below are two charts addressing these changes. The first summarizes the relevant changes for states; the second, for cities and other localities.

Please note that Arizona, Florida, Missouri, Montana, New Jersey, Ohio, Oregon, and Washington all have CPI based wage laws, and all have determined that there will be no minimum wage increase in 2016.

Many jurisdictions, such as Alaska, Minnesota, and Vermont, have passed sweeping minimum wage laws, but those changes will not go into effect for some time.

In the charts below,  denotes a jurisdiction that ties minimum wage increase to an index annually.

State Increases

State

Current

Change (1/1/16 unless stated otherwise)

Current for Tipped Employees

Change for Tipped Employees

Alaska

$8.75

$9.75

 

 

Arkansas

$7.50

$8.00

 

 

California

$9.00

$10.00

 

 

Colorado

$8.23

$8.31

$5.21

$5.29

Connecticut

$9.15

$9.60

$5.78-$7.46

$6.83-$7.82

Hawaii

$7.75

$8.50

$7.75

$8.50

Maryland

$8.25

$8.75

 

 

Massachusetts

$9.00

$10.00

$3.00

$3.35

Michigan

$8.15

$8.50

$3.10

$3.23

Minnesota

$7.25-$9.00

$7.75-$9.50 (8/1/16)

 

 

Nebraska

$8.00

$9.00

 

 

New York

$8.75

$9.00-$10.50 (12/31/15)

$4.9-$5.65

$7.50

Rhode Island

$9.00

$9.60

$2.89

$3.39

South Dakota

$8.50

$8.55

$4.25

$4.28

Vermont

$9.15

$9.60

$4.58

$4.80

West Virginia

$8.00

$8.75

$2.40

$2.62

A few points of note on the above chart:

  • Minnesota’s wage law differentiates between a “large” and “small” employer based on gross revenue of more than $500,000.

  • New York passed a minimum wage order specifically applying to the fast food industry, which has different wage levels compared the $9.00 minimum for other sectors (e.g., the hospitality industry, the farming industry, and other miscellaneous industries and occupations).

  • Nevada’s minimum wage law, which is generally tied to an economic index for yearly increases, is being contested in court and has been deemed impermissible under the State constitution.  An appeal of that decision is pending.  Should the law be deemed constitutional, the determination of the indexing has not yet occurred; therefore, no minimum wage has been set for 2016.

Local Increases

City or Municipality

Current

Change (1/1/16 unless stated otherwise)

Current for Tipped Employees

Change for Tipped Employees

Birmingham City, AL

$7.25

$8.50 (7/1/2016)

 

 

Berkeley, CA

$11.00

$12.53 (10/1/16)

 

 

Chicago, IL

$10.00

$10.50 (7/1/16)

$5.45

$5.95 (7/1/16)

Washington, DC

$10.50

$11.50 (7/1/2016)

 

 

King County, WA

$9.47

$10.50-13

 

 

Lexington-Fayette County, KY

$7.25

$8.20 (7/1/16)

 

 

Louisville, KY

$7.75

$8.15 (7/1/16)

 

 

Montgomery County, MD

$9.55

$10.75 (10/1/16)

 

 

Oakland, CA

$12.25

$12.55

 

 

Portland, ME

$7.50

$10.10

$3.25

$3.75

Prince George’s County, MD

$9.55

$10.75 (10/1/16)

 

 

San Diego, CA

$9.75

$10.50

 

 

San Francisco, CA

$12.25

$13.00 (7/1/16)

 

 

Santa Fe, NM

$10.84

$ (3/1/16)

 

 

Seattle, WA

$10.00 or $11.00

$10.50-$13.00

$10.00

$10.50

Tacoma, WA

$9.47

$10.35 (2/1/16)

 

 

As seen in the above chart, King County and Seattle’s minimum wage law are structured similarly in that the appropriate wage varies based on several factors, including the number of employees (500 or more) and whether the employer provides medical benefits,  Generally, the lower end of the minimum wage range is for smaller companies, and the higher end is for larger companies that do not pay health insurance. Both laws provide for a gradual increase over the next few years.

©2020 Epstein Becker & Green, P.C. All rights reserved.National Law Review, Volume V, Number 356

TRENDING LEGAL ANALYSIS


About this Author

Matthew Savage Aibel, Epstein Becker Green, Trade Secrets Attorney, Breach of Non-Compete Agreements Lawyer
Associate

MATTHEW SAVAGE AIBEL is an Associate in the Litigation and Employment, Labor & Workforce Management practices, in the New York office of Epstein Becker Green.

Mr. Aibel:

  • Assists in the representation of clients in complex commercial litigation, business disputes, and breach-of-contract matters

  • Provides assistance with litigation matters involving the breach of non-competition and non-solicitation agreements, the misappropriation of trade secrets, and...

212-351-4814
Nancy Gunzenhauser, Labor Employment Attorney, Epstein Becker Law Firm
Associate

NANCY L. GUNZENHAUSER is an Associate in the Labor and Employment practice, in the New York office of Epstein Becker Green.

Ms. Gunzenhauser:

  • Counsels clients on compliance with EEO laws, the Americans with Disabilities Act, the Family and Medical Leave Act, worker classification issues, and other federal, state, and local statutes governing the workplace
  • Advises employers in all facets of the employment relationship, from pre-employment considerations and hiring to terminations and post-employment restrictions
  • Prepares employment, consulting, and separation agreements
  • Audits employers’ employment policies, procedures, and handbooks to ensure compliance with applicable laws and best practices
  • Conducts workplace training seminars for employees, managers, and human resources personnel
  • Assists in defending clients in labor and employment-related litigation in a broad array of matters, such as discrimination, harassment, retaliation, breach of contract, and wage and hour disputes
212-351-3758