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.