Minimum Wage Rate Increases Summer 2015
Quick Facts:
- The minimum wage rate will increase in four states during the summer of 2015.
- Additional changes are expected in other states for 2016.
- Employers should review employee wage rates and workplace-required postings to ensure compliance with state laws.
Most employers in the United States are subject to the minimum wage provisions of the Federal Labor Standards Act (FLSA). These employers are required to pay their employees a wage rate of at least $7.25 per hour. However, many states have adopted minimum wage rates higher than the federal rate. When the state rate and the federal rate are different, employers must pay their employees the higher rate.
As of April 2015, 29 states and the District of Columbia have already adopted a minimum wage rate higher than the federal minimum wage rate.
During the summer of 2015, four jurisdictions will see an increase in their minimum wage rate. Affected employers should review their employees’ pay rates and update their minimum wage poster notices as necessary to ensure their compliance with wage and hour regulations.
| State | New Rate (per hour) | Effective Date |
| DE | $8.25 | 1-Jun-15 |
| D.C. | $10.50 | 1-Jul-15 |
| MD | $8.25 | 1-Jul-15 |
| MN | $9 (large employers) $7.25 (small employers) | 1-Aug-15 |
Increases in the minimum wage rate are also expected in New York, Alaska, Arkansas, Arizona, California, Colorado, Connecticut, Florida, Hawaii, Massachusetts, Michigan, Missouri, Montana, Nebraska, New Jersey, Oregon, Rhode Island, South Dakota, Vermont, Washington and West Virginia for 2016.
For more information on the Minimum Wage Increase, visit http://www.dol.gov/whd/minimumwage.htm
Southwest Risk Management will continue to monitor these developments and inform you of any updates as necessary.
