New Minimum Wage Regulations!

New Year and New Minimum Wage 

Increases for 2016

As you prepare for your first payrolls of 2016, I would like to make you aware of state minimum hourly wage changes for 2016.  In most of these states, the new minimum wage rates will apply as of January 1, 2016, while increased minimum wage rates in a few states will take effect later in 2016. If you are a multi-state employer with operations outside of Massachusetts, it is important to know that many states provide annual increases to the State Minimum Wage based on the U.S. Consumer Price Index and inflation.

Current Federal Minimum Wage Rate

Under the Fair Labor Standards Act (FLSA), the current federal minimum wage is $7.25 per hour. However, because the FLSA does not supersede any state or local laws that are more favorable to employees, if a state has a minimum wage that is higher than the federal minimum, employers subject to the state minimum wage law are obligated to pay the higher rate to employees working in that state.  As of January 1, 2016, the minimum wage rate for federal contractors will rise by five cents, to $10.15, under an executive order issued by President Obama.

Minimum Wage Increased by State

As of January 1, 2016, new minimum wage rates will be in effect in the following states:

  • Connecticut:  $9.60 (up from $9.15);
  • Massachusetts:  $10.00 (up from $9.00);
  • New York:  $9.00 (up from $8.75);
  • Rhode Island:  $9.60 (up from $9.00);
  • Vermont:  $9.60 (up from $9.15);

If you have any additional questions, please don’t hesitate to reach out.

 

Celia Couture

Celia Couture is a business coach, author, keynote speaker and management consultant that shows companies how to make more money while working fewer hours. She specializes in executive training programs and succession planning for family owned businesses.