Several states are increasing their minimum wages in the new year. As a reminder, when federal and state or local payroll laws differ, the employer must adhere to the law which benefits the employee the most. In cases where the state minimum wage is higher than the federal minimum wage of $7.25, the employee must be paid the higher state wage.
Please note that a number of locales have higher minimum wages for their residents as well. For example, Seattle, Washington and San Francisco, California both recently voted to incrementally raise the minimum wage to $15 per hour over the next several years. Please check with your local regulations to verify any differences from state or federal laws.
Below is a listing of states whose minimum wages are higher than the federal standard. States not listed in this table default to the federal minimum wage of $7.25 per hour. A complete list of the minimum wage by state can be found on the Department of Labor’s website.
States with Higher Minimum Wages than the Federal Wage:
Amounts listed below are effective January 1, 2015. Please note, these amounts may represent increases to the state’s 2014 minimum wage.
- Alaska $8.75
- Arizona $8.05
- Arkansas $7.50
- California $9.00
- Colorado $8.00
- Connecticut $9.15
- District of Columbia $10.50
- Delaware $8.25
- Florida $8.05
- Hawaii $7.75
- Illinois $8.25
- Maine $7.50
- Maryland $8.00 (increases to $8.25 July 1, 2015)
- Massachusetts $9.00
- Michigan $8.50
- Minnesota $8.00
- Missouri $7.50
- Montana $8.05
- Nebraska $8.00
- New Jersey $8.38
- New Mexico $7.50
- New York $8.75 (effective Dec, 31, 2014)
- Nevada $8.25
- Ohio $8.10
- Oregon $9.25
- Rhode Island $9.00
- South Dakota $8.50
- Vermont $9.15
- Washington $9.47
- West Virginia $8.00 (effective Dec, 31, 2104)
For questions about your state-specific laws and how they may differ from federal law, please contact Nextep’s HR Department or Payroll Department