New Year...New Minimum Wages in 20 States

Susan Parrott and Megan Black

The minimum wage under the federal Fair Labor Standards Act remains unchanged, but the new year brings minimum wage increases in 20 states. With these increases, 29 states and the District of Columbia now have minimum wage rates higher than the federal minimum wage of $7.25 an hour.  

The chart below shows minimum wages by state, as of January 1, 2015:  

State

Rate

Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Minnesota (if employer has annual receipts of less than $500,000), Mississippi, Nevada (if employer provides health benefits), New Hampshire, North Carolina, North Dakota, Ohio (if employer grosses $297,000 or less annually), Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Wisconsin, Wyoming

$7.25

Federal Minimum

Arkansas*, Maine, New Mexico

$7.50

Missouri*

$7.65

Alaska, Delaware, Hawaii*

$7.75

Maryland*, Minnesota (if employer has annual receipt of $500,000 or more), Nebraska*,West Virginia^

$8.00

Arizona*, Florida*, Montana*

$8.05

Ohio (if employer grosses over $297,000 annually)*

$8.10

Michigan

$8.15

Colorado*

$8.23

Illinois, Nevada (if not providing health benefits)

$8.25

New Jersey*

$8.38

South Dakota*

$8.50

New York^

$8.75

California, Massachusetts*, Rhode Island*

$9.00

Connecticut*, Vermont*

$9.15

Oregon*

$9.25

Washington*

$9.47

District of Columbia

$9.50

 
* effective as of January 1, 2015

^ effective as of December 31, 2014

Additionally, several states will increase minimum wage rates during the course of this year. These states include Alaska ($8.75, effective February 24, 2015) and Delaware ($8.25, effective June 1, 2015). 

Employers are reminded to review all applicable state and local minimum wage laws to confirm that their wage rates are in compliance. Employers also should ensure that employees have received any notifications required by these laws regarding the applicable minimum wage or wage rate changes.   

Additional minimum wage information can be obtained from the U.S. Department of Labor’s website or applicable state labor agency.  

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