News

2015 Minimum Compensation Rates

New Year Brings Changes in Minimum Compensation Rates in Thirty States and Local Jurisdictions
December 30, 2014

Employers should review compensation rates for both exempt and nonexempt employees, to ensure compliance with current legal thresholds. Set forth below are rates at the federal level, and for the states and localities that exceed federal levels for the most common job categories.

The following minimum compensation rates are effective as of January 1, 2015 (except where another effective date noted):

JURISDICTION EXEMPTION MINIMUM COMPENSATION
FEDERAL Nonexempt $7.25/hour
$10.10/hour (federal contractors and subcontractors)
Executive $4551/week on salary basis
Professional or Administrative $455/week on salary or fee basis
Computer $27.63/hour
Highly Compensated $100,000 total compensation (including minimum $455 minimum weekly salary or fee)
Licensed practicing Medical Doctor or Attorney; Teacher None
Business Owner (20% minimum equity and engaged in management) None
Outside Sales None
In the following jurisdictions, rates higher than the federal rates prevail.
ALASKA Nonexempt $8.75/hour (increase from 2014)
ARIZONA Nonexempt $8.05/hour (increase from 2014)
ARKANSAS Nonexempt $7.50/hour (employers with 4 or more employees) (increase from 2014)
CALIFORNIA Nonexempt $9.00/hour
Oakland $12.25/hour (increase from 2014, effective March 2, 2015)
San Francisco $11.05/hour (increase from 2014, effective January 1, 2015)
$12.25/hour (effective May 1, 2015)
San Jose $10.30/hour (increase from 2014)
Executive, Professional or Administrative $3,120.00/month on salary basis
Computer $41.27/hour, $7,165.12/month or $85,981.40/year (increase from 2014)
Licensed Physician $75.19/hour (increase from 2014)
COLORADO Nonexempt $8.23/hour (currently under consideration; would be increase from 2014)
CONNECTICUT Nonexempt $9.15/hour (increase from 2014)
DELAWARE Nonexempt $8.25/hour (effective June 1, 2015)
FLORIDA Nonexempt $8.05/hour (increase from 2014)
HAWAII Nonexempt $7.75/hour (increase from 2014)
ILLINOIS Nonexempt $8.25/hour
MAINE Nonexempt $7.50/hour
MARYLAND Nonexempt $8.00/hour (increase from 2014)
$8.25/hour (effective July 1, 2015)
MASSACHUSETTS Nonexempt $9.00/hour (increase from 2014)
MICHIGAN Nonexempt $8.15/hour (increase from 2014)
MINNESOTA Nonexempt $8.00/hour (employers whose annual gross volume of sales made or business done is at least $500,000)
$9.00/hour (employers whose annual gross volume of sales made or business done is at least $500,000; effective August 1, 2015)
MISSOURI Nonexempt $7.65/hour (increase from 2014)
MONTANA Nonexempt $8.05/hour (increase from 2014)
NEBRASKA Nonexempt $8.00/hour (increase from 2014)
NEVADA Nonexempt $7.25/hour (if qualifying health benefits available)
$8.25/hour (all others)
(increase may be announced in April 2014)
NEW JERSEY Nonexempt $8.38/hour (increase from 2014)
NEW MEXICO Nonexempt $7.50/hour
  Santa Fe $10.66/hour (increase may be announced in January 2015)
  Albuquerque $7.75/hour
(if qualifying healthcare and/or childcare benefits provided)
$8.75/hour (all others)
(increase from 2014)
NEW YORK Nonexempt $8.75/hour (increase from 2014, effective December 31, 2014)
$9.00/hour (effective December 31, 2015)
OHIO Nonexempt $8.10/hour (employers with gross revenue of more than $297,000/yr) (increase from 2014)
OREGON Nonexempt $9.25/hour (increase from 2014)
RHODE ISLAND Nonexempt $9.00/hour (increase from 2014)
SOUTH DAKOTA Nonexempt $8.50/hour (increase from 2014)
VERMONT Nonexempt

$9.15/hour (increase from 2014)

WASHINGTON, DC Nonexempt $10.50/hour (increase from 2014, effective July 1, 2015)
WASHINGTON
STATE
Nonexempt $9.47/hour (increase from 2014)
Seattle $10.00/hour (employers with fewer than 500 employees in the U.S.)2
$11.00/hour (employers with 500 or more employees in the U.S.)
(increase from 2014, effective April 1, 2015; subject to pending litigation)
SeaTac $15.24/hour (hospitality/transportation employees) (increase from 2014)
Outside Sales Exemption guaranteed salary, commission, or fee
WEST VIRGINIA Nonexempt $8.00/hour (increase from 2014)
NOTES
  1. Equivalent amounts if paid on salary basis: $910 biweekly; $985.83 semimonthly; $1971.66 monthly; or $23,660 annualized.
  2. Employers with fewer than 500 employees must also pay their employees an hourly compensation of at least $11 per hour. Employers can meet the applicable hourly minimum compensation requirement through wages (including applicable commissions, piece-rate, and bonuses), tips, and money paid by an employer toward an individual employee's medical benefits plan, provided that the employer also pays the employee a minimum wage of $10 per hour.

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