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2016 Minimum Wage Increase

December 14, 2015

bryan_johnsonJanuary typically marks a time when many states adjust minimum wage rates – in a few weeks several states will be increasing the minimum amount employers are required to pay their employees.

Most employers in the US are subject to the minimum wage provisions of the Federal Labor Standards Act (FLSA). The FLSA’s minimum wage rate is $7.25 per hour.  States have the option of going ABOVE that rate – when this happens employers are obligated to abide by the state mandated rates.


The following states have opted to increase rates:

State New Rate Date of Change
NY $9.00 Dec. 31, 2015
AK $9.75 Jan. 1, 2016
AR $8.00 Jan. 1, 2016
CA $10.00 Jan. 1, 2016
CO $8.31* Jan. 1, 2016
CT $9.60 Jan. 1, 2016
HI $8.50 Jan. 1, 2016
MA $10.00 Jan. 1, 2016
MI $8.50 Jan. 1, 2016
NE $9.00 Jan. 1, 2016
RI $9.60 Jan. 1, 2016
SD $8.55 Jan. 1, 2016
VT $9.60 Jan. 1, 2016
WV $8.75 Jan. 1, 2016
Rate changes in the works for the summer of 2016:  Washington D.C., Maryland and Minnesota.

Employers:  Don’t forget to update your payroll as well as any compliance posters hanging in work spaces.  Increased payroll will more than likely affect some of your insurance premiums – specifically Workers’ Compensation.

Connecticut employers and employees can visit the Department Of Labor’s website to learn more about the wage increase.

As always, feel free to contact us at Founders Insurance Agency if you have any questions or concerns.

Bryan Johnson

P&C Operations Manager




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