When the Minimum Wage Isn't…

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Employers operating in multiple states should be aware that several states are raising their minimum hourly wage in 2014. While for now the federal minimum wage will remain unchanged at $7.25 (for non-tipped employees), many states have announced that their minimum wage will in fact increase, and similar measures are being considered by other states.

As of December 31, 2013, the minimum wage in New York will increase from $7.25 to $8.00 per hour. New York has also approved increases to be effective on December 31, 2014 (to $8.75), and December 31, 2015 (to $9.00).

On January 1, 2014, an increase in the minimum wage in several other states will become effective. Those states and approved increases are as follows:

 State  Current Minimum Wage Increased Minimum Wage Effective January 1, 2014
 Arizona  $7.80  $7.90
 Connecticut  $8.25  $8.70*
 Florida  $7.79  $7.93
 Missouri  $7.35  $7.50
 Montana  $7.80  $7.90
 New Jersey  $7.25  $8.25
 Ohio  $7.85  $7.95~
 Oregon  $8.95  $9.10
 Rhode Island  $7.75  $8.00
 Washington  $9.19  $9.32

* Connecticut has also approved another increase to be effective January 1, 2015 (to $9.00).
~ The 2014 minimum wage provision in Ohio will only apply to businesses with annual gross receipts of more than $292,000.

On July 1, 2014, California will also raise its current $8.00 minimum wage to $9.00.  On January 1, 2016, that wage will again increase to $10.00 per hour. Arizona, Florida, Missouri, Ohio, and Rhode Island have also approved increases in the minimum hourly wage for tipped-employees.

Other states such as Alaska, Colorado, Idaho, Massachusetts, South Dakota, Hawaii, Illinois, Maryland and Minnesota are discussing similar measures or even pushing to include minimum wage increases on ballots in 2014 so voters can decide whether an increase is appropriate.


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.

© Baker Donelson | Attorney Advertising

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