State Minimum Wage Increases for 2017

2017 is just around the corner and, as you are busy ringing in the New Year, the minimum wage in several states will be increasing.  Is minimum wage increasing in your state?

The below table lists the states who have announced a minimum wage increase for 2017:

Minimum Wage as of November 18, 2016 Scheduled Increase for January 1, 2017
(Dec. 31, 2016 in New York)
Arizona $8.05 1/1/17 increases to $10.00
$5.05 for tipped employees increases to $7.00 for tipped employees
Arkansas $8.00 1/1/2017 – increases to $8.50
$2.63 for tipped employees minimum wage for tipped employees remains $2.63
California* $10.00 1/1/2017 – increases to
~ $10.50 (for employers with 26 or more employees)
~ Remains at $10.00 for employers with 25 or fewer employees
Colorado $8.31 1/1/17 increases to $9.30
$5.29 for tipped employees increases to $6.28 for tipped employees
Connecticut $9.60 1/1/2017 – increases to $10.10
$6.07 for restaurant and hotel employees who regularly receive tips increases to $6.38 for restaurant and hotel employees who regularly receive tips
$7.82 for bartenders who regularly receive tips increases to $8.32 for bartenders who regularly receive tips
Florida $8.05 1/1/17 increases to $8.10
$5.03 for tipped employees increases to $5.08 for tipped employees
Hawaii $8.50 1/1/2017 – increases to $9.25
$7.75 for tipped employees increases to $8.50 for tipped employees
Maine* $7.50 1/1/2017 – increases to $9.00
$3.75 for tipped employees increases to $5.00 for tipped employees
Massachusetts $10.00 1/1/2017 – increases to $11.00
$3.35 for tipped employees increases to $3.75 for tipped employees
Michigan $8.50 for employers with 2 or more employees 1/1/2017 – increases to $8.90
$3.23 for tipped employees increases to $3.38 for tipped employees
Montana $8.05 for employers with gross annual sales over $100,000.00 1/1/2017 – increases to $8.15 for employers with gross annual sales over $100,000.00
$4.00 for employers with gross annual sales of $100,000.00 or less minimum wage for employers with gross annual sales of $100,000.00 or less remains $4.00
New Jersey $8.38 1/1/2017 – increases to $8.44
$2.13 for tipped employees increases to $2.13 for tipped employees
New York $9.00 for all employees but fast food employees 12/31/2016 – increases to
$7.50 for all tipped employees ~ $9.70 for “Upstate” employers (excluding fast food employees)
$9.75 for fast food employees only Minimum wage for tipped employees remains $7.50
~ $10.00 for “Downstate” employers (excluding fast food employees)
Minimum wage for tipped employees remains $7.50
~ $10.50 for “small” NYC employers (excluding fast food employees)
Minimum wage for tipped employees remains $7.50
~ $10.75 for fast food employees outside NYC
~ $11.00 for “large” NYC employers (excluding fast food employees)
Minimum wage for tipped employees remains $7.50
~ $12.00 for fast food employees inside NYC
Ohio $8.10 for employers with more than $297,000 in gross annual revenue 1/1/2017 – increases to $8.15 for employers with more than $299,000 in gross annual revenue
$4.05 for tipped employees increases to $4.08 for tipped employees
$7.25 for employers with less than $297,000 in gross annual revenue Remains at $7.25 for employers with less than $299,000 in gross annual revenue
Rhode Island $9.60 1/1/2017 – minimum wage remains $9.60
$3.39 for tipped employees increases to $3.89 for tipped employees
South Dakota $8.55 1/1/2017 – increases to $8.65
$4.275 for tipped employees increases to $4.325 for tipped employees
Vermont $9.60 for employers with 2 or more employees 1/1/2017 – increases to $10.00
$4.80 for tipped employees minimum wage for tipped employees remains $4.80
Washington* $9.47 1/1/2017 – increases to $11.00

* Please be advised that there are cities and/or counties in this state that have passed a local minimum wage rate that is higher than the state minimum wage. Please contact an HR Professional to determine if the cities/counties in which you operate have passed a local minimum wage.

In addition to the above-listed states, the following states may adjust their minimum wage for 2017 to reflect changes in the Consumer Price Index:

  • Alaska — will increase to $9.80 on January 1, 2017
  • Missouri
  • Nevada
  • Washington DC

As these states announce whether their minimum wages will increase in 2017, we will let you know.

What can employers do?

If minimum wage is increasing in your state, employers need to take steps to ensure that all employees are paid at least minimum wage (at the new rate) before the increase is effective.