New minimum wage rates

 

Effective July 1, 2016, the minimum wage will increase in the following cities and states:

 

STATE INCREASES

District of Columbia– Minimum wage increases to $11.50

Maryland – Minimum wage increases to $8.75

  • Montgomery County – Minimum wage increases to $10.75
  • Prince George Counties – Minimum wage increases to $10.75 (effective October 1, 2016)

Oregon

  • Employers located in Portland Metro Area – Minimum wage increases to $9.75
  • Employers located in Frontier Counties – Minimum wage increases to $9.50
  • Employers located in Remaining Areas – Minimum wage increases to $9.75

LOCAL INCREASES

California

  • El Cerrito – Minimum wage increases to $11.60
  • Emeryville – Minimum wage increases to $13.00/55 or less employees, $14.82/56 or more employees
  • Los Angeles (City and County) – Minimum wage increases to $10.50
  • Pasadena – Minimum wage increases to $10.50/26 or more employees
  • San Francisco – Minimum wage increases to $13.00
  • Santa Monica – Minimum wage increases to $10.50
  • Sunnyvale – Minimum wage increases to $11.00

Illinois

  • Chicago – Minimum wage increases to $10.50

Kentucky

  • Louisville – Minimum wage increases to $8.25

INCREASES EFFECTIVE LATER THIS YEAR

  • Berkeley, CA – Minimum wage increases to $12.53 effective October 1, 2016
  • Minnesota – Minimum wage increases to $9.50 large employers/$7.75 small employers effective August 1, 2016 (employer size based on annual gross revenue)

WHAT EMPLOYERS NEED TO DO

  • Consider local governing minimum wage requirements. Minimum wage must be paid at the highest rate mandated for the employer’s locale.
  • Increase wages for employees making less than the new minimum required amount.
  • Consider payroll processing implications when determining the effective date of the wage change.  For example, if wages are increased effective July 1, employees may have different base pays in a single pay period.
  • Review and amend company policies that are paid at minimum wage, for example: travel pay that is paid at minimum wage.
  • Review and amend, if applicable, pay scales for exempt staff considering all Federal, State, and local wage requirements. For example, specific California Wage Orders require that an exempt employee’s monthly salary must be at least two times the State minimum wage for full time employment.

 

Contact your Payroll Client Manager for assistance in updating your employees’ pay rates, if applicable.