Nov 21, 2014

2015—Minimum Wage to Increase in 18 States Including D.C.

Although the federal minimum wage will remain unchanged in 2015, numerous states will adjust their minimum wage beginning January 1, 2015, including Colorado, Florida, Maryland, and Washington.

The federal minimum wage will remain at $7.25 per hour in 2015. The only exception is that employees of federal contractors and subcontractors will now be paid no less than $10.10 per hour, as a result of an executive order signed by President Obama, previously discussed here.

Many states, however, will increase their minimum wage next year. If a state or municipality’s minimum wage is higher than the federal minimum wage, then the higher rate must be paid. Below are the new minimum hourly wage rates effective January 1, 2015, unless otherwise noted:

Arizona – Regular minimum wage will increase from $7.90 to $8.05 per hour. Minimum wage for tipped employees will increase from $4.90 to $5.05 per hour.

Colorado – Minimum wage will increase from $8.00 to $8.23 per hour.

Connecticut – Minimum wage will increase from $8.70 to $9.15 per hour.

Delaware – Minimum wage will increase from $7.75 to $8.25 per hour on June 1, 2015.

D.C. – Minimum wage will increase from $9.50 to $10.50 per hour on July 1, 2015.

Florida – Minimum wage will increase from $7.93 to $8.05 per hour. For tipped employees, the new minimum wage will be $5.03 per hour.

Hawaii – Minimum wage will increase from $7.25 to $7.75 per hour.

Maryland – Minimum wage will increase from $7.25 to $8.00 per hour on January 1, 2015, then from $8.00 to $8.25 per hour on July 1, 2015.

Massachusetts – Minimum wage will increase from $8.00 to $9.00 per hour.

Minnesota – Minimum wage will increase from $8.00 to $9.00 per hour for large employers (with annual gross revenue of $500,000 or more), and from $6.50 to $7.25 per hour for small employers (with annual gross revenue of less than $500,000), on August 1, 2015.

Montana – Minimum wage will increase from $7.90 to $8.05 per hour.

New Jersey – Minimum wage will increase from $8.25 to $8.38 per hour.

New York – Minimum wage will increase from $8.00 to $8.75 per hour on December 31, 2014, then from $8.75 to $9.00 per hour on December 31, 2015.

New York City – A recent executive order from Mayor Bill de Blasio will increase minimum wage to $13.13 per hour for businesses that are located in buildings that receive $1 million or more in city subsidies and do not offer health insurance to workers. For employers in such buildings that do offer health insurance, the minimum wage has been raised to $11.90 per hour. Numerous exemptions apply, click here to read more.

Ohio – Minimum wage will increase from $7.95 to $8.10 per hour.

Oregon – Minimum wage will increase from $9.10 to $9.25 per hour.

Rhode Island – Minimum wage will increase from $8.00 to $9.00 per hour. For tipped employees, the minimum cash wage an employee must be paid remains at $2.89 per hour. The maximum tip credit will increase from $5.11 to $6.11 per hour.

Vermont – Minimum wage will increase from $8.73 to $9.15 per hour. Tipped employees must be paid half the minimum wage.

Washington – Minimum wage will increase from $9.32 to $9.47 per hour.

To learn more about how the new minimum wage rates and other new employment laws may affect your company, or if you have any questions regarding these issues, please contact your Labor and Employment counsel at Smith, Gambrell & Russell, LLP.

This client alert is intended to inform clients and other interested parties about legal matters of current interest and is not intended as legal advice.


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