Ten states and two major cities make annual cost-of-living adjustments to the local minimum wage. These minimum wages will take effect Jan. 1, unless otherwise noted:

• Arizona — $7.25
• Colorado — $7.28
• Florida — $7.21 (additional increase to $7.25 on 7/24/09)
• Missouri — $7.05 ($7.25 on 7/24/09); Tip credit increases to $3.525, and to $3.625 on 7/24/09
• Montana — $6.90 ($7.25 on 7/24/09); $4.00 if gross annual sales are $100k or less
• Ohio — $7.30; $6.55 if annual gross receipts are less than $267k (increases to $7.25  on 7/24/09); Tip credit increases to $3.65
• Oregon — $8.40
• Vermont — $8.06; Tip credit increases to $4.15
• Washington — $8.55

The cities with announced wage increases are:

• San Francisco — $9.79
• Sana Fe, NM — $9.92.

• Tip credit provisions of the FLSA are the same.
• The youth minimum wage is unchanged.
• Minimum wage rates in American Samoa and the Commonwealth of Northern Mariana Islands are also being raised with phased increases. They’ll be brought level with the federal minimum wage over the next few years.

All these changes are part of the Fair Minimum Wage Act of 2007. For more details, visit the DOL’s site.

The good news for Payroll: With the rates going up, this is one change employees aren’t likely to grumble about.