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Minimum Wage Increases For January 2016

Written by Ken Gaebler
Published: 12/28/2015

The New Year is almost here. Employers need to be aware of upcoming minimum wage changes.

If you pay workers hourly and are subject to the minimum wage, your labor costs may increase effective January 1, as many statutory minimum wage increases will go into effect.

Minimum Wage Increases 2016

Here are states that will have a higher minimum wage to start 2016 than they did at the end of 2015:

  • Alaska -- Minimum wage rises from $8.75 to $9.75.
  • Arkansas -- Minimum wage increases from $7.50 to $8.00.
  • California -- Minimum wage jumps from $9.00 to $10.00.
  • Colorado -- Minimum wage increases from $8.23 to $8.31.
  • Connecticut -- Minimum wage goes from $9.15 to $9.60.
  • Hawaii -- Minimum wage increases from $7.75 to $8.50.
  • Massachusetts -- Minimum wage rises from $9.00 to $10.00.
  • Michigan -- Minimum wage ramps up from $8.15 to $8.50.
  • Nebraska -- Minimum wage increases from $8.00 to $9.00.
  • New York -- Minimum wage moves up from $8.75 to $9.00.
  • Rhode Island -- Minimum wage increases from $9.00 to $9.60.
  • South Dakota -- Minimum wage jumps from $8.50 to $8.55.
  • Vermont -- Minimum wage increases from $9.15 to $9.60.
  • West Virginia -- Minimum wage rises from $8.00 to $8.75.

Be aware that there are a variety of minimum wage exceptions that allow employers to not have to pay the minimum wage. In addition, some cities have their own minimum wages that differ from state minimum wages. Finally, don't forget that the new minimum wage increases for 2016 may also impact your overtime pay to employees.

The penalties for not paying minimum wage add up. In addition to having to pay up what you've not paid to your employees, repeated violations can result in a penalty of $1,100 for each violation.

To make absolutely sure you've got your payroll numbers right, check your amounts with your state's labor department.

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