We are happy to provide you with a comprehensive 2017 minimum wage chart that lists the minimum wage rates that will be in effect for 2017 in all 50 states and the District of Columbia. The chart also details the changes in state laws from 2016 to 2017.
- First and most important, all employers covered under the Fair Labor Standards Act (FLSA) will still be required to meet the applicable FLSA minimum hourly rate, which remains at $7.25. States with minimum wage rates that are lower than $7.25 per hour must pay employees at least $7.25 per hour.
- The chart also breaks down the maximum tip credit that employers can count against the hourly rates of tipped employees. The tip credit is the portion of the cash minimum wage that employers are not required to pay to employees who receive tips. The minimum wage less the applicable tip credit is the lowest wage per hour that an employer can pay its tipped employees.
- All FLSA-covered employers may apply a tip credit that, generally, should be no greater than the FLSA’s maximum tip credit, which is currently set at $5.12 per hour. Employers in states with maximum tip credits that are higher than the federal maximum tip credit may be able to apply the higher tip credit only if the difference between the state minimum wage and the tip credit is at least $2.13. A more conservative approach, however, would be to adopt the lower federal maximum tip credit since it is more advantageous to employees. Employers in states that have enacted a tip credit that is lower than the federal maximum tip credit of $5.12 per hour (including states that have prohibited the payment of tip credits in their entirety) may continue to follow the more employee-friendly state law.
Please note that employers may also want to be careful to take into account applicable local laws that set a higher minimum wage in certain cities or localities than the minimum wage in the state. By way of example, the following big cities or localities currently impose minimum wages that are higher than the statewide minimum wage of the state in which they are located:
- New York: New York City, Long Island and Westchester.
- California: Los Angeles, San Diego, and San Francisco (among numerous other cities in California).
- Illinois: Chicago and Cook County.
- Maryland: Montgomery and Prince George’s Counties.
- Maine: Portland.
- New Mexico: Albuquerque and Santa Fe.
- Washington: Seattle, SeaTac and Tacoma.
At DecisionHR we pride ourselves in staying in the forefront, continuously monitoring and regulating industry changes and its possible impact on your business.
Contact your HR Business Partner for additional information on this issue or any questions you may have.