Minimum Wage Increases in the New Year
With the start of the new year, the minimum wage has increased in several states. The federal minimum wage remains at $7.25; this is the lowest hourly amount that employers can pay employees in the United States. However, if a state has a higher minimum wage, the employer must pay the higher amount. Likewise, if a city or county has a higher minimum wage than the federal or state rate, the employer must pay the higher amount.
As of January 1, 2016, the minimum wage increased to the following amounts:
- Alaska: $9.75
- Arkansas: $8
- California: $10
- Colorado: $8.31
- Connecticut: $9.60
- Hawaii: $8.50
- Massachusetts: $10
- Michigan: $8.50
- Nebraska: $9
- New York: $9
- Rhode Island: $9.60
- South Dakota: $8.55
- Vermont: $9.60
- West Virginia: $8.75
Employers and employees should check with their city or county to find out if there is a local minimum wage. For more information about the rules in your state, see Your Right to Minimum Wage.