Tax & Accounting Blog

Minimum Wage Updates—July 2016

Accounting Firms, CS Professional Suite Payroll Solutions, Payroll August 5, 2016

Without much fanfare, several minimum wage changes occurred on July 1, 2016.

Minimum wage increases usually take effect on January 1 of each year, but several areas—particularly localities—enacted changes in July due to increased pressure and publicity nationwide around minimum wages. Keep reading for a list of many of these changes and how Thomson Reuters can help you to keep clients in compliance.

States

District of Columbia—$11.50 (raised from $10.50), plus annual increases to $15 by 2020.

Maryland—$8.75 (raised from $8.25); will increase to $9.25 by July 1, 2017, and again to $10.10 by July 1, 2018

Oregon—Wage increases will be tiered by region: Standard (medium density) + Portland $9.75 (raised from $9.25); non-urban areas $9.50 (raised from $9.25). Over the next six years, minimum wage will increase to $14.75, $13.50 and $12.50, depending on the specific region.

Kentucky—$8.20 (raised from $7.25); will increase to $9.15 by July 1, 2017, and again to $10.10 by July 1, 2018. The city of Louisville will increase to $8.25 (raised from $7.75) and then up to $9.00 on July 1, 2017.

Ohio—The Attorney General issued an opinion stating that localities did not have the authority to institute minimum wages higher than the state minimum wage. This opinion may be challenged in court.

Cities

Chicago—$10.50 (raised from $10); tipped minimum $5.95 (raised from $5.45). On July 1, 2017, the minimum wage will increase to $11. Future years will increase by $1 per year until $13 is achieved on July 1, 2019.

California—These California cities have the following minimum wage increases as of July 1, 2016:

  • El Cerrito—$11.60
  • Emeryville—$14.82 (large employers 56+); $13 (small employers 55 or less)
  • Los Angeles—$10.50 (26+ employees)
  • Los Angeles County—$10.50 (26+ employees)
  • Malibu—$10.50 (26+ employees)
  • Pasadena—$10.50 (26+ employees)
  • San Francisco—$13
  • Santa Monica—$10.50 (26+ employees)
  • Sunnyvale—$11
  • Berkeley—There is a ballot in November for the following minimum wage increases: $12.25 as of October 1, 2017; $14.05 as of October 1, 2018; $15 as of October 1, 2019

Since 2016 is an election year, it’s a good idea to keep a keen eye on other legislation that may come up. Here at myPay Solutions, we’ll be watching, too!

For those of you delivering payroll services to clients, the Accounting CS Form and Filing Information portlet on the dashboard provides access to useful state and local information. It’s easy to research form approval status, form availability, form due dates, tax payment information, agency contact information and other payroll news. For information on working with Accounting CS dashboards, see Dashboard portlet: Payroll Form & Filing Information in the Help & How-To Center.