2015 Minimum Wage Increase Guide

By:  Mark Ward | Payroll Experts, Inc

 

Happy New Year!  With the new year comes the huge onslaught of payroll reporting requirements required by different federal, state and local tax agencies.  However, no worries, we’ve got you covered (hopefully you are smiling because not only do we have you covered but because of our unique all inclusive pricing structure we don’t charge extra for preparing/printing/filing your W-2’s)!  This morning our printers finally get a rest because we have completed printing all your W-2’s!  The sky scrapers of paper stacks have reached record levels for us J.  Over the next couple of weeks we will distribute the W-2’s via courier or mail.  If you’d like to pick up your W-2’s please email us at processing@MyPayrollExperts.com and we will pull them for you to pick up.  Please remember, we will get the W-2’s to you but then you’ll need to distribute or mail the W-2’s to the recipients no later than February 2, 2015.

 

With 2015 now here we thought it would be helpful to review minimum wage laws/changes.  The minimum wage is the lowest rate that employers are required to pay their non-exempt employees (unless the employee meets certain, state-specific exceptions such as those for tipped employees). In some cases, the state and federal minimum wage will differ, and whichever is higher, must be paid. The guide below does not reflect minimum wages for local jurisdictions (city, county, districts), child labor laws, training wages, minimum revenue exceptions, etc. All figures below are per hour rates. For specific notes, refer to our HR Support Center (https://payrollexperts.myhrsupportcenter.com/users/sign_in) state law summaries or contact a HR Professional.  Where a 2015 increase is listed without a date, the effective date is 1/1/15.

 

 

 

Jurisdiction

2014

2015

General Notes

Federal

$7.25

$7.25

For all employers grossing more than $500,000. Training wage of $4.25 per hour allowed for workers under 20 years old for the first 90 calendar days of employment.

Alabama (AL)

$7.25

$7.25

No state set minimum wage. Federal minimum applies.

Alaska (AK)

$7.75

$8.75

Alaska’s minimum wage increases to $9.75 on 1/1/16.

Arizona (AZ)

$7.90

$8.05

Rate increases tied to consumer price index.

Arkansas (AR)

$7.25

$7.50

Arkansas’ minimum wage increases to $8.00 on 1/1/16 and to $8.50 on 1/1/17.

California (CA)

$9.00

$9.00

California minimum wage increases to $10.00 on 1/1/16. Many city rates differ from state minimum wage. The Minimum Wage Ordinance states that most exempt employees must make at least twice the state minimum wage.

Colorado (CO)

$8.00

$8.23

Rate increases tied to consumer price index and is adjusted annually.

Connecticut (CT)

$8.70

$9.15

Connecticut’s minimum wage increases to $9.60 on 1/1/16 and to $10.10 on 1/1/17.

Delaware (DE)

$7.75

$7.75 ($8.25 on 6/1/15)

Delaware’s minimum wage increases to $8.25 on 6/1/15.

District of Columbia

(D.C.)

$9.50

$9.50 ($10.50 on 7/1/15)

D.C.’s minimum wage increases to $10.50 on 7/1/15 and to $11.50 on 7/1/16. Rate increases tied to consumer price index after 2016.

Florida (FL)

$7.93

$8.05

Rate increases tied to consumer price index.

Georgia (GA)

$7.25

$7.25

Georgia’s state minimum wage rate is $5.15. As the state’s minimum wage is lower than federal minimum wage, the federal rate applies.

Hawaii (HI)

$7.25

$7.75

Hawaii’s minimum wage increases to $8.50 on 1/1/16, to $9.25 on 1/1/17, and to $10.10 on 1/1/18.

Idaho (ID)

$7.25

$7.25

State minimum wage will automatically follow federal minimum wage.

Illinois (IL)

$8.25

$8.25

Employees under the age of 18 may be paid up to $0.50 less for the minimum wage rate. Non-tipped employees may be paid $7.75 for the first 90 days with the employer.

Indiana (IN)

$7.25

$7.25

Iowa (IA)

$7.25

$7.25

Kansas (KS)

$7.25

$7.25

Kentucky (KY)

$7.25

$7.25

Louisiana (LA)

$7.25

$7.25

No state set minimum wage. Federal minimum applies.

Maine (ME)

$7.50

$7.50

Maryland (MD)

$7.25

$8.00 ($8.25 on 7/1/15)

Maryland’s minimum wage increases to $8.25 on 7/1/15, to $8.75 on 7/1/16, to $9.25 on 7/1/2017 and to $10.10 on 7/1/2018.

Massachusetts (MA)

$8.00

$9.00

Massachusetts’ minimum wage increases to $10.00 on 1/1/16, and to $11.00 on 1/1/17. Massachusetts Blue Laws require some employers to pay premium pay for Sundays and certain holidays.

Michigan (MI)

$8.15
(Starting 9/1/2014)

$8.15

Michigan’s minimum wage increases to $8.50 on 1/1/16, to $8.90 on 1/1/17, and to $9.25 on 1/1/18. Minors 16–17 years of age may be paid 85% of the minimum hourly wage rate (so long as it is not less than the federal minimum wage of $7.25).

Minnesota (MN)

$8.00 for large businesses/$6.50 for small businesses (fed rate higher)

$8.00 for large/$6.50 for small ($9.00/
$7.25 on 8/1/15)

Minnesota has two separate minimum wages based on employer size. Future increases for large businesses ($500,000+ in gross annual sales): $9.00 on 8/1/15 and $9.50 on 8/1/16. Future increases for small businesses (under $500,000 in gross annual sales): $7.25 on 8/1/15 and $7.75 on 8/1/16. There are different rates for those under 18 years of age.

Mississippi (MS)

$7.25

$7.25

No state set minimum wage. Federal minimum applies.

Missouri (MO)

$7.50

$7.65

Rate increases tied to consumer price index.

Montana (MT)

$7.90

$8.05

Rate increases tied to consumer price index.

Nebraska (NE)

$7.25

$8.00

Nebraska’s minimum wage increases to $9.00 on 1/1/16.

Nevada (NV)

$7.25

or

$8.25

$7.25

or

$8.25

Minimum wage in Nevada is $7.25 per hour for employees whose employer provides qualifying health benefits and $8.25 for employees whose employer does not provide qualifying health benefits. Rate tied to consumer price index.

New Hampshire (NH)

$7.25

$7.25

New Jersey (NJ)

$8.25

$8.38

Rate increases tied to consumer price index.

New Mexico (NM)

$7.50

$7.50

Many city rates differ from state minimum wage.

New York (NY)

$8.00

($8.75 on 12/31/14)

$8.75

($9.00 on 12/31/15)

New York’s minimum wage increases to $9.00 on 12/31/15. New York has a minimum for exempt employees’ earnings of $656.25 per week as of 12/31/14 for the Executive and Administrative exemptions ($675 on 12/31/15). For most of the other exemptions, the federal minimum of $455 applies.

North Carolina (NC)

$7.25

$7.25

North Dakota (ND)

$7.25

$7.25

Ohio (OH)

$7.95

$8.10

Rate increases tied to consumer price index. Employers who gross under $288,000.00 shall pay their employees no less than the current federal minimum wage rate.

Oklahoma (OK)

$7.25

$7.25

State minimum wage will automatically follow federal minimum wage.

Oregon (OR)

$9.10

$9.25

Rate increases tied to consumer price index.

Pennsylvania (PA)

$7.25

$7.25

Rhode Island (RI)

$8.00

$9.00

South Carolina (SC)

$7.25

$7.25

No state set minimum wage. Federal minimum applies.

South Dakota (SD)

$7.25

$8.50

Future rate increases tied to consumer price index.

Tennessee (TN)

$7.25

$7.25

No state set minimum wage. Federal minimum applies.

Texas (TX)

$7.25

$7.25

State minimum wage will automatically follow federal minimum wage.

Utah (UT)

$7.25

$7.25

Vermont (VT)

$8.73

$9.15

Vermont’s minimum wage increases to $9.60 on 1/1/16, to $10.00 on 1/1/17, and to $10.50 on 1/1/18. Rate increases tied to consumer price index beginning in 2019.

Virginia (VA)

$7.25

$7.25

State minimum wage will automatically follow federal minimum wage.

Washington (WA)

$9.32

$9.47

Rate increases tied to consumer price index. Many city rates differ from state minimum wage.

West Virginia (WV)

$7.25

$8.00

West Virginia’s minimum wage increases to $8.75 on 1/1/16.

Wisconsin (WI)

$7.25

$7.25

Wyoming (WY)

$7.25

$7.25

The state minimum wage rate is $5.15. As the state’s minimum wage is lower than the federal minimum wage, the federal rate applies.

 

 

 

Legal Disclaimer: This document is intended for informational purposes only, and does not constitute legal information or advice. This information and all HR Support Center materials are provided in consultation with federal and state statutes and do not encompass other regulations that may exist, such as local ordinances. Transmission of documents or information through the HR Support Center does not create an attorney-client relationship. If you are seeking legal advice, you are encouraged to consult an attorney.

 

Leave a Reply

Best of state in quality and service 9 times running