Minimum Wage Increases in January 2017

As of January 1, 2017, minimum wage increases will affect employers in numerous states and localities. Under the federal Fair Labor Standards Act, the minimum wage for non-exempt employees remains at $7.25 per hour, but if a state or local law provides for higher minimum wage than the federal law requires, employers subject to that state or local law must pay the higher rate. North Carolina’s minimum wage rate remains at $7.25 per hour.

In a number of states, the wage increase is automatic because the applicable state law ties the wage rate to changes in the Consumer Price Index. In a few states, Arizona, Colorado, Maine, and Washington, voters approved minimum wage increases in November. The state minimum wage increases that are effective as of January 1, 2017, and the new wage per hour rates are:
 

 
Additionally, an increasing number of localities across the country have implemented minimum wage rates higher than the federal minimum wage. Employers should continue to be aware of wage rate changes and monitor their pay practices in each of their locations to assure compliance with all applicable wage and hour laws. Employers should also ensure that employees receive any required notices regarding a change in wage rate.

[1] For employers with 26 or more employees; $10.00 if fewer than 26 employees.

[2] For most of New York State, some New York City rates and some county rates are higher.

[3] For employers with gross receipts of $297,000 or more.