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Payroll

State-by-State Minimum Wage Changes for 2017

Twenty-five states, plus the District of Columbia, index their minimum wages to rise automatically with the cost of living. Four more states, also including the District of Columbia, will index minimum wage increases annually beginning in future years.

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Several states and localities have announced minimum wage changes for 2017.

Twenty-five states, plus the District of Columbia, index their minimum wages to rise automatically with the cost of living. Four more states, also including the District of Columbia, will index minimum wage increases annually beginning in future years: Alaska (2017), Washington, D.C. (2017), Minnesota (2018), Michigan (2019) and Vermont (2019).

The following table shows the state minimum wages (as well as some localities) and 2017 changes and proposals. This list changes daily, so make sure to keep an eye out for changes.

State

City

2017 Minimum Wage

AK

 

$8.75

AL

 

FED ($7.25; $9.50/$10.10 proposed)

AR

 

$7.50; $8.50 (new) 2017

AZ

 

$8.05; $10 (proposed) 1/1/17

CA

 

$10; $10.50 (new) 2017 >25 employees

 

Oakland

$12.25

 

San Diego

$10.50; $11.50 (new) 2017; $11.05

 

San Francisco

$13; $14; $15 (7/16, 17, 18)

 

San Jose Berkeley – NEW

10.30; new wages: $10.40 1/1/17, $11 .00, $12.53 10/1/16, $13.75 10/1/17, $15 10/1/18

 

San Mateo

12.25; $12 (proposed) 1/1/17

 

California computer professionals

Overtime: $41.85 2016, $42.39 2017

CO

 

8.31; $8.56 (proposed) 1/1/17

CT

 

$9.60

DC

 

$11.50 7/1/2016

DE

 

$8.25

FL

 

$8.05; $8.10 (new) 1/1/17

GA

 

$5.15 (state has lower minimum wage than FED, but FED prevails)

HI

 

$8.50 2016; new wages: $9.25 2017, $10.10 2018

IA

 

$7.25

ID

 

$7.25

IL

 

$8.25

IN

 

$7.25

KS

 

$7.25

KY

 

$7.25

LA

 

FED ($7.25; $9.50/$10.10 proposed)

MA

 

$9.00 ; new wages: $10.00 1/16, $11.00 1/17 (needs governor signing)

 

MA (working on Sundays)

$12.00

MD

 

$8.75 (7/1/16); new wages: $9.25 (7/1/17), $10.10 (7/1/18)

ME

 

$7.50; $9 (proposed) 1/1/17

 

Portland

new wages: $10.10,   $10.68 1/1/17

MI

 

$8.50 1/1/16; new wages: $8.90 1/1/17, $9.25 1/1/18

MN

 

$9.50 8/1/16; $7.75 (new)

MO

 

$7.65

 

Kansas City

$8.50; $9.00 1/1/16

 

St. Louis

new wages: $10.00 1/1/17, $11.00 1/1/18

MS

 

FED ($7.25; $9.50/$10.10 proposed)

MT

 

$8.05; $8.15 (new) 1/1/17

NC

 

$7.25

ND

 

$7.25

NE

 

$9.00 (proposed)

NH

 

$7.25

NJ

 

$8.38; $8.44 (new) 1/1/17

NM

 

$7.50 ($1.00 less healthcare)

 

Albuquerque

$8.75; $7.75 with healthcare

 

Santa Fe

$10.84

NV

 

$8.25, $7.25

NY

 

new wages: $9.00 2016, $9.70 2017 (NYC higher)

 

New York City – living wage 10/14

new wages: $13.13 without health insurance, $11.50 with health insurance

 

Rochester

new wages: $12.81 without health insurance, $11.47 with health insurance

OH

 

$8.10, $7.25 (if revenue is

OK

 

$7.25

OR

 

$9.25

PA

 

$7.25

PR

 

$7.25

RI

 

$9.60

SC

 

FED ($7.25; $9.50/$10.10 proposed)

SD

 

$8.55; $8.65 1/1/17

TN

 

FED ($7.25; $9.50/$10.10 proposed)

TX

 

$7.25

UT

 

$7.25

VA

 

$7.25

VT

 

$9.60; new wages: $10.00 2017, $10.50 2018

WA

 

$9.47 2016; $9.53 (new) 1/1 17

 

Seattle

new wages: $13-12 2016, $15-13 2017 (if the business has <500 employees)

WI

 

$7.25

WV

 

$8.75 1/1/16

WY

 

$5.15 (state has lower minimum wage than FED, but FED prevails)

Many additional localities have pending legislation for minimum wage changes so stay on the lookout for more increases. Minimum wage rules are always a moving target, so it’s important to watch for changes that affect your and your clients’ companies.

The tables above are regular minimum wage rules. Many states have tipped employee minimum wage rules and amounts that are lower. One notable exception is California, which does not have a lower minimum wage for tipped employees. And one industry to watch is restaurants—across the country, more restaurants are eliminating tips and increased wages to staff to state regular minimums.

If your firm uses Accounting CS® Payroll, the Payroll Form and Filing Information portlet on the Home dashboard provides the following information: payroll form availability, form due dates, form filing addresses, tax payment information, agency contact information and other payroll resources. Learn more with a detailed list of recent updates to payroll tax rates, limits and minimum wage updates.

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James Paille CPP is the Director of Operations for Thomson Reuters myPay Solutions. He has been an executive manager in the payroll service industry for more than 30 years, specializing in managing multi-location offices. Jim is President of the American Payroll Association as well as a member of the National Speakers Bureau and chair of the CPP Certification Review Panel. He holds a Bachelor of Science in Accounting from St. John Fisher College in Rochester, NY.