With the New Year comes a minimum wage increase in 10 states: Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Rhode Island, Vermont and Washington. Each of these states has a higher minimum wage rate than the federal minimum of $7.25/hour. Employers in these states are required to pay the higher state minimum wage.
In addition to these 10 states, 9 other states plus the District of Columbia have a higher minimum wage requirement than the federal rate. While not law yet, several other states have been engaged in efforts to increase their minimum wages. Democratic leaders in the House have also indicated that raising the federal minimum wage is a priority, however, no such legislation has been voted on.
This serves as a reminder to employers to check applicable state laws where they have employees to ensure that they are paying at least the proper minimum wage.