New Year Brings Higher Minimum Wage in 13 States

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Effective January 1, 2014, the minimum wage increased in 13 states. With these increases, 21 states and the District of Columbia now have minimum wage rates higher than the federal minimum wage rate of $7.25 an hour. In some states, these raises are the result of voter decision, in others, legislation by lawmakers, and in some, a statutory increase for inflation. The increase in the minimum wage earner’s hourly rate will, in most circumstances, result in higher overtime pay rates for the minimum wage earner.

Employers should ensure that they are now paying appropriate wage rates and that they are in compliance with any applicable state laws requiring posting of the minimum wage and notifying employees of wage rate changes. More increases are on their way. California’s rate will increase from $8.00 to $9.00 an hour effective July 1, 2014. Further, according to the National Employment Law Project, as many as 11 additional states are expected to consider increases in 2014. 

The chart below indicates minimum wages by state, as of January 1, 2014: 

State

Rate

Alabama, Arkansas, Delaware, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Minnesota, Mississippi, Nebraska, Nevada (if employer provides health benefits), New Hampshire, North Carolina, North Dakota, Ohio (if employer grosses less than $292,000 annually), Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin, Wyoming

$7.25

Federal Minimum

Michigan

$7.40

Maine, Missouri (?), New Mexico

$7.50

Alaska

$7.75

Arizona (?), Montana (?)

$7.90

Florida

$7.93

Ohio (if employer grosses over $292,000 annually)

$7.95

California, Colorado (?), Massachusetts, New York (?), Rhode Island (?)

$8.00

DC, Illinois, Nevada (if not providing health benefits), New Jersey (?)

$8.25

Connecticut (?)

$8.70

Vermont (?)

$8.73

Oregon (?)

$9.10

Washington (?)

$9.32

*? denotes a January 1, 2014 increase

Where to Get Additional Information

The U.S. Department of Labor’s website provides additional minimum wage information, including historical information, compliance assistance and frequently asked questions.  

Topics:  Compliance, Minimum Wage, Wages

Published In: Labor & Employment Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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