Minimum Wage, Tipped and Exempt Employee Pay in 2020: A Rates-Only Update

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Minimum wage laws can affect businesses of all sizes, whether operating nationwide, in multiple jurisdictions, or only in one state, county, or city. To help manage this challenge, below we provide a rates-only update that details scheduled state- and local-level wage increases throughout 2020 so employers can determine the minimum amount they must pay non-exempt, tipped, and certain exempt employees.

Because pending or future legislation might change minimum wage rates that will apply in 2020, we recommend employers follow developments via our monthly article, WPI Wage Watch: Minimum Wage, Tip, and Overtime Developments, and consult with counsel to confirm rates did not change since publication.

2020 Minimum Wage Wage Increases1

Please note the New York rates may also increase on December 31, 2020. However, for this article we focus on the New York rates that will apply every day in 2020 except December 31, 2020.

Jurisdiction

Increase Date

2019 Minimum Wage (MW) (or Pre-Change Rate2)

2020 MW

Increase

Alaska

January 1

$9.89

$10.19

30¢

Arizona

January 1

$11.00

$12.00

$1.00

Flagstaff, AZ

January 1

$12.00

$13.00

$1.00

Arkansas

January 1

$9.25

$10.00

75¢

California (≥26)

January 1

$12.00

$13.00

$1.00

California (≤25)

January 1

$11.00

$12.00

$1.00

Alameda, CA

July 1

$13.50

$15.00

$1.50

Belmont, CA

January 1

$13.50

$15.00

$1.50

Berkeley, CA (General)

July 1

$15.59

TBD

TBD

Berkeley, CA (Youth Works & Job Training)

July 1

$14.50

TBD

TBD

Cupertino, CA

January 1

$15.00

$15.35

35¢

Daly City, CA

January 1

$12.00

$13.75

$1.75

El Cerrito, CA

January 1

$15.00

$15.37

37¢

Emeryville, CA

July 1

$16.30

TBD

TBD

Fremont, CA (≥26)

July 1

$13.50

$15.00

$1.50

Fremont, CA (≤25)

July 1

$12.00 (State)

$13.50

$1.50

Long Beach (Hotel)

July 1

$14.97

TBD

TBD

Los Altos, CA

January 1

$15.00

$15.40

40¢

Los Angeles, CA (≥26)

July 1

$14.25

$15.00

75¢

Los Angeles, CA (≤25)

July 1

$13.25

$14.25

$1.00

Los Angeles, CA (Hotel)

July 1

$16.63

TBD

TBD

Los Angeles County (Unincorp.), CA (≥26)

July 1

$14.25

$15.00

75¢

Los Angeles County (Unincorp.), CA (≤25)

July 1

$13.25

$14.25

$1.00

Malibu, CA (≥26)

July 1

$14.25

$15.00

75¢

Malibu, CA (≤25)

July 1

$13.25

$14.25

$1.00

Menlo Park, CA

January 1

$12.00 or $11.00 (State)

$15.00

$3.00 or $4.00

Milpitas, CA

July 1

$15.00

TBD

TBD

Mountain View, CA

January 1

$15.65

$16.05

40¢

Novato, CA (≥100)

January 1 & July 1

$12.00 & $13.00 (State)

$13.00 & $15.00

$1.00 & $2.00

Novato, CA (26-99)

January 1 & July 1

$12.00 & $13.00 (State)

$13.00 & $14.00

$1.00 & $1.00

Novato, CA (≤25)

January 1 & July 1

$11.00 & $12.00 (State)

$12.00 & $13.00

$1.00 & $1.00

Oakland, CA (General)

January 1

$13.80

$14.14

34¢

Oakland, CA (Hotel – No Health Benefits)

July 1

$20.00

TBD

TBD

Oakland, CA (Hotel –Health Benefits)

July 1

$15.00

TBD

TBD

Palo Alto, CA

January 1

$15.00

$15.40

40¢

Pasadena, CA (≥26)

July 1

$14.25

$15.00

75¢

Pasadena, CA (≤25)

July 1

$13.25

$14.25

$1.00

Petaluma, CA (≥26)

January 1

$12.00 (State)

$15.00

$3.00

Petaluma, CA (≤25)

January 1

$11.00 (State)

$14.00

$3.00

Redwood City, CA

January 1

$13.50

$15.38

$1.88

Richmond, CA (Without Benefits)

January 1

$15.00

No Change3

N/A

Richmond, CA (With Benefits4)

January 1

$13.50

No Change

N/A

San Diego

January 1

$12.00

$13.00

$1.00

San Francisco, CA (General)

July 1

$15.59

TBD

TBD

San Francisco, CA (Gov't-Supported Employee)

July 1

$13.79

TBD

TBD

San Jose, CA (General)5

January 1

$15.00

$15.25

25¢

San Leandro, CA

July 1

$14.00

$15.00

$1.00

San Mateo, CA (General)

January 1

$15.00

$15.38

38¢

San Mateo, CA (Non-Profit)

January 1

$13.50

$15.38

$1.88

Santa Clara, CA

January 1

$15.00

$15.40

40¢

Santa Monica, CA (≥26)

July 1

$14.25

$15.00

75¢

Santa Monica, CA (≤25)

July 1

$13.25

$14.25

$1.00

Santa Monica, CA (Hotels)

July 1

$16.63

TBD

TBD

Santa Rosa, CA (≥26)

July 1

$13.00 (State)

$15.00

$2.00

Santa Rosa, CA (≤25)

July 1

$12.00 (State)

$14.00

$2.00

Sonoma, CA (≥26)

January 1

$12.00 (State)

$13.50

$1.50

Sonoma, CA (≤25)

January 1

$11.00 (State)

$12.50

$1.50

South San Francisco, CA

January 1

$12.00 or $11.00 (State)

$15.00

$3.00 or $4.00

Sunnyvale, CA

January 1

$15.65

$16.05

40¢

Colorado

January 1

$11.10

$12.00

90¢

Connecticut

September 1

$11.00

$12.00

$1.00

D.C.

July 1

$14.00

$15.00

$1.00

Florida

January 1

$8.46

$8.56

10¢

Illinois

January 1 & July 1

$8.25

$9.25 & $10

$1.00 & 75¢

Chicago, IL

July 1

$13.00

TBD

TBD

Cook County, IL

July 1

$12.00

$13.00

$1.00

Maine

January 1

$11.00

$12.00

$1.00

Portland, ME

January 1 & July 1

$11.11 & $12.00 (State)

$12.006 & TBD

89¢ & TBD

Maryland (≥15)

January 1

$10.10

$11.00

90¢

Maryland (≤14)

January 1

$10.10

$11.00

90¢

Montgomery County, MD (≥51)

July 1

$13.00

$14.00

$1.00

Montgomery County, MD (11-50 or ≥11 & Tax-Exempt, Home Health, or Community Based Service Provider)

July 1

$12.50

$13.25

75¢

Montgomery County, MD (≤10)

July 1

$12.50

$13.00

50¢

Massachusetts

January 1

$12.00

$12.75

75¢

Michigan7

January 1

$9.45

$9.65

20¢

Minnesota ($500K Gross)

January 1

$9.86

$10.00

14¢

Minnesota (<$500K Gross & Certain Hotels, etc.)

January 1

$8.04

$8.15

11¢

Minneapolis, MN (≥101)

July 1

$12.25

$13.25

$1.00

Minneapolis, MN (≤100)

July 1

$11.00

$11.75

75¢

Saint Paul, MN (≥10,001)

January 1

$9.86 (State – Likely)

$12.50

$2.64

Saint Paul, MN (101-10,000)

July 1

$9.86 (State – Likely)

$11.50

$1.64

Saint Paul, MN (6-100)

July 1

$9.86 or $8.04 (State – Likely)

$10.00

14¢ or $1.96

Saint Paul, MN (≤5)

July 1

$8.04 (State – Likely)

$9.25

$1.21

Missouri

January 1

$8.60

$9.45

85¢

Montana

January 1

$8.50

$8.65

15¢

Nevada (No Health Benefits Offered)

July 1

$8.25

$9.00

75¢

Nevada (Health Benefits Offered)

July 1

$7.25

$8.00

75¢

New Jersey (General)

January 1

$10.00

$11.00

$1.00

New Jersey (Small or Seasonal Employer)

January 1

$8.85

$10.30

$1.45

New Jersey (Farm Hourly or Piece Rate)

January 1

$8.85

$10.30

$1.45

New Mexico

January 1

$7.50

$9.00

$1.50

Albuquerque, NM (No Health &/or Childcare Benefits)

January 1

$9.20

$9.35

15¢

Albuquerque, NM (Health &/or Childcare Benefits)

January 1

$8.20

$8.35

15¢

Bernalillo County (Unincorp.), NM (No Health &/or Childcare Benefits)

January 1

$9.05

$9.20

15¢

Bernalillo County (Unincorp.), NM (Health &/or Childcare Benefits)

January 1

$8.05

$8.20

15¢

Las Cruces, NM

January 1

$10.10

$10.25

15¢

Santa Fe, NM8

March 1

$11.80

TBD

TBD

Santa Fe County (Unincorp.), NM

March 1

$11.80

TBD

TBD

New York (NYC ≥11)

December 31, 2019

$15.00

No change

N/A

New York (NYC ≤10)

December 31, 2019

$13.50

$15.00

$1.50

New York (NYC Fast Food)

December 31, 2019

$15.00

No change

N/A

New York (Non-NYC Fast Food)

December 31, 2019

$12.75

$13.75

$1.00

New York (Nassau, Suffolk & Westchester Counties)

December 31, 2019

$12.00

$13.00

$1.00

New York (Remainder of State)

December 31, 2019

$11.10

$11.80

70¢

Ohio

January 1

$8.55

$8.70

15¢

Oregon (Urban)9

July 1

$12.50

$13.25

75¢

Oregon (General)

July 1

$11.25

$12.00

75¢

Oregon (Nonurban)

July 1

$11.00

$11.50

50¢

South Dakota

January 1

$9.10

$9.30

20¢

Vermont

January 1

$10.78

$10.96

18¢

Washington

January 1

$12.00

$13.50

$1.50

SeaTac, WA

January 1

$16.09

$16.34

25¢

Seattle, WA (≥501)

January 1

$16.00

$16.39

39¢

Seattle, WA (≤500 Min. Wage)

January 1

$12.00

$13.50

$1.50

Seattle, WA (≤500 Min. Hourly Comp.)10

January 1

$15.00

$15.75

75¢

Tacoma, WA

January 1

$12.35

$13.50 (State Law)11

$1.15

2020 Tipped Rate Increases

In certain places, employers may be able to count tips an employee receives toward the minimum wage. In these jurisdictions, if the direct wage an employer pays an employee and tips equals the minimum wage, an employer satisfies its minimum wage obligation. However, if the direct wage plus tips does not equal the minimum wage, an employer must pay the employee the difference. Directly below we highlight the minimum cash wage (MCW) that may be paid, and the maximum tip credit (TC) employers can claim, for covered tipped employees, as well as the amount of the increase. Please note that in the following states with 2020 rate increases, tip credits are prohibited (so they are not included below): Alaska; California; Minnesota; Montana; Nevada; Oregon; and Washington State. Finally, because New York has varying standards, we include the numbers in a standalone section after the below chart.

Jurisdiction

Increase Date

2019 MCW (or Pre-Change Rate12)

2020 MCW

2019 TC (or Pre-Rate Change)

2020 TC

Arizona

January 1

$8.00

$9.00 ($1.00)

$3.00

No Change

Flagstaff, AZ

January 1

$9.00

$10.00 ($1.00)

$3.00

No Change

Arkansas

January 1

$2.63

No Change

$6.62

$7.37 (75¢)

Colorado

January 1

$8.08

$8.98 (90¢)

$3.02

No Change

Connecticut (Hotel or Restaurant)

September 1

$6.38

No Change

$4.62

$5.62 ($1.00)

Connecticut (Bartender)

September 1

$8.23

No Change

$2.77

$3.77 ($1.00)

D.C.

July 1

$4.45

$5.00 (55¢)

$9.55

$10.00 (45¢)

Florida

January 1

$5.44

$5.54 (10¢)

$3.02

No Change

Illinois

January 1 & July 1

$4.95

$5.55 (60¢) & $6.00 (45¢)

$3.30

$3.70 (40¢) & $4.00 (30¢)

Chicago, IL

July 1

$6.40

TBD

$6.60

TBD

Cook County, IL

July 1

$5.25

TBD

$6.75

TBD

Maine

January 1

$5.50

$6.00 (50¢)

$5.50

$6.00 (50¢)

Portland, ME

January 1 & July 1

$5.50

$6.00 (50¢) & TBD

$5.61

$6.00 (39¢) & TBD

Maryland (≥15)

January 1

$3.63

No Change

$6.47

$7.37 (90¢)

Maryland (≤14)

January 1

$3.63

No Change

$6.47

$7.37 (90¢)

Montgomery County, MD (≥51)

July 1

$4.00

No Change

$9.00

$10.00 ($1.00)

Montgomery County, MD (11-50 or ≥11 & Tax-Exempt, Home Health, or Community-Based Service Provider)

July 1

$4.00

No Change

$8.50

$9.25 (75¢)

Montgomery County, MD (≤10)

July 1

$4.00

No Change

$8.50

$9.00 (50¢)

Massachusetts

January 1

$4.35

$4.95 (60¢)

$7.65

$7.80 (15¢)

Michigan13

January 1

$3.59

$3.67 (08¢)

$5.86

$5.98 (12¢)

Missouri

January 1

$4.30

$4.725 (42.5¢)

$4.30

$4.725 (42.5¢)

New Jersey14

January 1

$2.63

$3.13 (50¢)

$7.37

$7.87 (50¢)

New Mexico

January 1

$2.13

$2.35 (22¢)

$5.37

$6.65 ($1.28)

Albuquerque, NM (No Health &/or Childcare Benefits)

January 1

$5.50

$5.60 (10¢)

$3.70

$3.75 (05¢)

Albuquerque, NM (Health &/or Childcare Benefits)

January 1

$5.50

$5.60 (10¢)

$2.70

$2.75 (05¢)

Bernalillo County (Unincorp.), NM (No Health &/or Childcare Benefits)

January 1

$2.13

$2.35 (22¢) (State Rate)

$6.92

$6.85 (-07¢)

Bernalillo County (Unincorp.), NM (Health &/or Childcare Benefits)

January 1

$2.13

$2.35 (22¢) (State Rate15)

$5.92

$5.85 (-07¢)

Las Cruces, NM

January 1

$4.04

$4.10 (06¢)

$6.06

$6.15 (09¢)

Santa Fe, NM

March 1*

$2.1316

$2.35 (22¢) (*1/117) & TBD

$9.67

TBD

Santa Fe County (Unincorp.), NM

March 1

$3.53

TBD

$8.27

TBD

Ohio

January 1

$4.30

$4.35 (05¢)

$4.25

$4.35 (10¢)

South Dakota

January 1

$4.55

$4.65 (10¢)

$4.55

$4.65 (10¢)

Vermont

January 1

$5.39

$5.48 (09¢)

$5.39

$5.48 (09¢)

New York Tip Rates

Tipped employee standards can be more complicated in New York, so we give the Empire State its own section. First, we discuss generally applicable tip standards, then standards that apply in the hospitality industry, which vary depending on an employee’s role and the place of employment.

Note that some New York rates will also increase on December 31, 2020. However, for this article we focus on the New York rates that will apply in every day in 2020 except December 31, 2020.

Generally: If an employee’s weekly tip average is less than the Low amount, employers cannot claim a tip credit. If an employee’s weekly tip average is between the Low (L) and High (H) amounts, the tip credit cannot exceed the Low amount. If an employee’s weekly tip average equals or exceeds the High amount, the tip credit cannot exceed the High amount.

Jurisdiction

Increase Date

2019 MCW L&H (or Pre-Change Rate18)

2020 MCW L&H

2019 TC L&H

2020 TC L&H

New York (NYC ≥11)

December 31, 2019

$12.75
$11.35

No Change

$2.25
$3.65

No Change

New York (NYC ≤10)

December 31, 2019

$11.45
$10.20

$12.75 ($1.30)
$11.35 ($1.15)

$2.05
$3.30

$2.25 (20¢)
$3.65 (35¢)

New York (Nassau, Suffolk & Westchester Counties)

December 31, 2019

$10.20
$9.05

$11.05 (85¢)
$9.80 (75¢)

$1.80
$2.95

$1.95 (15¢)
$3.20 (25¢)

New York (Remainder of State)

December 31, 2019

$9.45
$8.40

$10.05 (60¢)
$8.90 (50¢)

$1.65
$2.70

$1.75 (10¢)
$2.90 (20¢)

Hospitality Industry

Service Employee: An employer must directly pay a service employee at least the hourly Cash Wage (CW), and cannot claim a tip credit that exceeds the hourly Tip Credit rate (TC). However, an employer’s ability to claim the tip credit is dependent on an employee’s weekly tip average equaling at least the hourly Tip Threshold (TT) (or TT(R) for resort hotel service employees) and an employee’s direct wage plus tips equaling or exceeding the minimum wage.

Jurisdiction

Increase Date

2019 MCW (or Pre-Change Rate19)

2020 MCW

2019 TC

2020 TC

New York (NYC ≥11)

December 31, 2019

$12.50

No Change

$2.50

No Change

New York (NYC ≤10)

December 31, 2019

$11.25

$12.50 ($1.25)

$2.25

$2.50 (25¢)

New York (Nassau, Suffolk & Westchester Counties)

December 31, 2019

$10.00

$10.85 (85¢)

$2.00

$2.15 (15¢)

New York (Remainder of State)

December 31, 2019

$9.25

$9.85 (60¢)

$1.85

$1.95 (10¢)

Jurisdiction

Increase Date

2019 TT (or Pre-Change Rate20)

2020 TT

2019 TT(R)

2020 TT(R)

New York (NYC ≥11)

December 31, 2019

$3.25

No Change

$8.40

No Change

New York (NYC ≤10)

December 31, 2019

$2.95

$3.25 (30¢)

$7.60

$8.40 (80¢)

New York (Nassau, Suffolk & Westchester Counties)

December 31, 2019

$2.60

$2.80 (20¢)

$6.75

$7.30 (55¢)

New York (Remainder of State)

December 31, 2019

$2.40

$2.55 (15¢)

$6.25

$6.60 (35¢)

Food Service Worker: A food service worker must receive a wage of at least the hourly Cash Wage (CW), and a tip credit cannot exceed the below-specified hourly rate (TC) provided the total of tips received plus the wages equals or exceeds the hourly total minimum wage rate (MW). Employers cannot claim a tip credit for fast food employees.

Jurisdiction

Increase Date

2019 MCW (or Pre-Change Rate21)

2020 MCW

2019 TC

2020 TC

New York (NYC ≥11)

December 31, 2019

$10.00

No Change

$5.00

No Change

New York (NYC ≤10)

December 31, 2019

$9.00

$10.00 ($1.00)

$4.50

$5.00 (50¢)

New York (Nassau, Suffolk & Westchester Counties)

December 31, 2019

$8.00

$8.65 (65¢)

$4.00

$4.35 (35¢)

New York (Remainder of State)

December 31, 2019

$7.50

$7.85 (35¢)

$3.60

$3.95 (35¢)

Exempt Employees

Notwithstanding the 2020 increase concerning the minimum amount22 employers must pay executive, administrative, and professional employees for these workers to be exempt from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime requirements, currently at least five states have pay requirements that will (or can) exceed the revised federal standard: Alaska, California, Colorado (Executive or Supervisor), Maine, and New York State (Executive or Administrative).23 Additionally, Pennsylvania and Washington State have proposals that will exceed the FLSA rate, and Michigan's governor has directed the state labor department to increase the minimum amount employers must pay these employees. It remains possible other states will join this list.

Under some state laws, the aforementioned categories of employees are exempt only from overtime requirements, meaning employers must pay them at least the state minimum wage for all hours worked, and many of these state minimum wage rates will increase in 2020. Additionally, in 2020, there will be state law increases in the minimum hourly pay required to qualify for the state-law equivalent of the FLSA’s 7(i) retail or service establishment overtime exemption for employees paid commissions. Below we discuss these pay-related 2020 changes.

Executive, Administrative, or Professional Exemption Minimum Pay Increases

Under the FLSA, to be a bona fide executive, administrative, or professional employee, employer must compensate the individual on a salary or fee basis (only for administrative and professional employees) at a specific rate per week, excluding board, lodging, or other facilities. On January 1, 2020, this minimum salary or fee will increase from $455 to $684 per week. Employers may translate the $684 a week amount into equivalent amounts for periods longer than one week: $1,368 (Bi-weekly); $1,482 (Semi-monthly); $2,964 (Monthly); $35,568 (Annual). Various states' minimum salary or fee amounts exceed the federal rate, and in 2020, these pay requirements will change.

Note that the New York rates may also increase on December 31, 2020. However, for this article we focus on the New York rates that will apply every day in 2020 except December 31, 2020.

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Jurisdiction

2019 Annual

2020 Annual

2019 Monthly

2020 Monthly

2019 Weekly

2020 Weekly

Alaska24

$41,142.40

$42,390.40

$3,428.53

$3,532.53

$791.20

$815.20

California25 (≥26)

$49,920

$54,080

$4,160

$4,506.67

$960

$1,040

California (≤25)

$45,760

$49,920

$3,813.34

$4,160

$880

$960

Colorado26 (If 40, 50, or 60 Hrs/Wk)

>$23,088
>$28, 860
>$34,632

>$24,960
>$31,200
>$37,440

>$1,924
>$2,405
>$2,886

>$2,080
>$2,600
>$3,120

>$444
>$555
>$666

>$480
>$600
>$720

Maine27

>$33,000

>$36,000

>$2,750

>$3,000

>$634.61

>$692.30

New York28 (NYC ≥11)

$58,500

No Change

$4,875

No Change

$1,125

No Change

New York (NYC ≤10)

$52,650

$58,500

$4,387.50

$4,875

$1,012.50

$1,125

New York (Nassau, Suffolk & Westchester Counties)

$46,800

$50,700

$3,900

$4,225

$900

$975

New York (Remainder of State)

$43,264

$46,020

$3,605.34

$3,835

$832

$885

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Additionally, California law provides that certain computer software employees, as well as licensed physicians and surgeons, are exempt from state overtime requirements if they receive a minimum hourly, monthly, or yearly rate, which is determined annually based on cost-of-living changes. Effective January 1, 2020, the computer software employee minimum hourly rate will increase from $45.41 to $46.55 per hour, the minimum monthly salary amount will increase from $7,883.62 to $8,080.71, and the minimum annual salary amount will increase from $94,603.25 to $96,968.33. For licensed physicians and surgeons, the minimum hourly rate of pay will increase from $82.72 to $84.79.

White Collar Employees Covered by Minimum Wage

In various states, executive, administrative, or professional employees are exempt from state overtime requirements, but not exempt from state minimum wage requirements. In these jurisdictions, such employees must earn at least the applicable minimum wage for each hour worked in a workweek. The minimum wage in some of these states will increase on January 1, 2020:29 Arizona ($12.00); Illinois ($9.25); Massachusetts ($12.75); New Jersey ($11.00 under the general rate; $10.30 for small or seasonal employers); and South Dakota ($9.10). Moreover, on July 1, 2020, the Illinois minimum wage will further increase to $10.00 per hour, and the Nevada minimum wage will increase to $9.00 or $8.00 per hour, depending on whether an employer offers health benefits. Note that in two aforementioned states – Arizona and Illinois – local minimum wage rates may apply (see above).

Commissioned Employee Overtime Exemption

To qualify under the FLSA’s 7(i) overtime exception, the regular rate of pay for an employee of a retail or service establishment must exceed one-and-a-half times the federal minimum wage, and more than half the employee’s compensation for a representative period (not less than one month) must represent commissions on goods or services. In the following states with 2020 rate changes, the 7(i)-type exemption requires – in part – an employee’s pay to either equal or exceed one-and-a-half times the state minimum wage.30

California: An employee’s earnings must exceed one-and-a-half times the state minimum wage, which on January 1, 2020, will increase to $13.00 per hour for employers with 26 or more employees and to $12.00 per hour for employees with 25 or fewer employees.

Colorado: An employee’s regular rate of pay must be at least one-and-a-half times the state minimum wage, which on January 1, 2020, will increase to $12.00 per hour.

Connecticut: An employee's regular rate of pay must exceed two times the state minimum wage, which on September 1, 2020, will increase to $12.00 per hour.

District of Columbia: An employee’s regular rate of pay must exceed one-and-a-half times the district minimum wage, which on July 1, 2020, will increase to $15.00 per hour.

Minnesota: An employee’s regular rate of pay must exceed one-and-a-half times the state minimum wage, which on January 1, 2020, will increase to $10.00 per hour for employers with $500,000 in annual gross sales, and to $8.15 per hour for employers with less than $500,000 in annual gross sales, and certain hotels.

Nevada: An employee’s regular rate must exceed one-and-a-half times the state minimum wage, which on July 1, 2020, will increase to $9.00 per hour if an employer does not offer health benefits or $8.00 per hour if an employer offers health benefits.

New York: The general wage order31 provides – in part – that employers must pay an employee for overtime at a wage rate of one-and-one-half times the employee's regular rate in the manner and methods provided in and subject to the exemptions of section 7 of the FLSA. However, it is unclear whether employers must base payment on the federal or state minimum wage. If the state minimum wage, the wage rate will increase on December 31, 2019. In New York City, the minimum wage applicable to employers with 11 or more employees will remain $15.00 and the rate for employers with 10 or fewer employees will increase to $15.00. The minimum wage in Nassau, Suffolk, and Westchester Counties will increase to $13.00. Finally, in the remainder of New York State, the minimum wage will increase to $11.80. Please note the New York rates may also increase on December 31, 2020.

Oregon: An employee’s regular rate of pay must exceed one-and-a-half times the state minimum wage, which on July 1, 2020, will increase to $13.25 per hour (urban), $12.00 per hour (general), and $11.50 per hour (non-urban).

Washington: An employee’s regular rate of pay must exceed one-and-a-half times the state minimum wage, which on January 1, 2020, will increase to $13.50 per hour.

Footnote

1 Although we include examples of industry-specific minimum wage rates, this article’s primary purpose is to discuss rate changes that affect employers generally, so it may not necessarily cover all industry-specific rate changes; nor does this article discuss industry laws’ coverage requirements.

Chronologically, the increases will occur as follows: December 31, 2019: New York. January 1, 2020: Alaska, Arizona (incl. Flagstaff), Arkansas, California (incl. Belmont, Cupertino, Daly City, El Cerrito, Los Altos, Menlo Park, Mountain View, Novato, Oakland (Gen.), Palo Alto, Petaluma, Redwood City, Richmond, San Diego, San Jose, San Mateo, Santa Clara, Sonoma, South San Francisco, Sunnyvale), Colorado, Florida, Illinois, Maine (incl. Portland), Maryland, Massachusetts, Michigan, Minnesota (incl. Saint Paul ≥10,001), Missouri, Montana, New Jersey, New Mexico (incl. Albuquerque, Bernalillo County (Unincorp.), Las Cruces), Ohio, South Dakota, Vermont, Washington (incl. SeaTac, Seattle, Tacoma). March 1, 2020: Santa Fe and Santa Fe County (Unincorporated), NM July 1, 2020: Alameda, Berkeley, Emeryville, Fremont, Long Beach (Hotel), Los Angeles, Los Angeles County (Unincorp.), Malibu, Milpitas, Novato, Oakland (Hotel), Palo Alto, Pasadena, San Francisco, San Leandro, Santa Monica, and Santa Rosa, CA, D.C., Illinois (incl. Chicago & Cook County), Portland, ME, Montgomery County, MD, Minneapolis and Saint Paul, MN (101-10,000, ≤100, ≤5), Nevada, and Oregon. September 1, 2020: Connecticut.

2 This applies to any rate change that occurs other than on January 1, 2020.

3 Although Richmond, like other cities in Northern California's San Francisco Bay Area, annually adjusts its rate based on consumer price index changes, the city announced its rate would not change like other cities in the area.

4 If an employer pays at least $1.50 per hour per employee towards an employee medical benefits plan, which allows the employee to receive employer-compensated care from a licensed physician, the employer can pay employees $1.50 per hour less than the minimum wage. Richmond, CA Code § 7.108.040.

5 San Jose has a separate rate for youth training program participants, which the city sets in an approved application and remains valid for one year.

6 Although Portland, ME annually adjusts its minimum wage on July 1, when the state minimum wage equals or exceeds the local minimum wage, the applicable local rate is the state rate, which will occur on January 1, 2020. Portland, ME Code § 33.7(b)(iv).

7 In July 2019, the Michigan Supreme Court heard oral arguments concerning a request by legislators to issue an advisory opinion concerning the constitutionality of 2018 lame-duck session amendments legislators made that overhauled the minimum wage (and paid sick) law. How the court decides the case could affect the applicable minimum wage rate and related rates.

8 Although the ordinance uses “Beginning January 1, 2009, and each year therafter [sic]. . . .” the City of Santa Fe has routinely adjusted its rate on March 1. See Santa Fe, NM Code § 28-1.5(B).

9 The “Urban” rate applies to employer located within the urban growth boundary of a metropolitan service district organized under state law (i.e., Portland area). The “Nonurban” rate applies to employers located within a nonurban county. Nonurban Counties include: Baker; Coos; Crook; Curry; Douglas; Gilliam; Grant; Harney; Jefferson; Klamath; Lake; Malheur; Morrow; Sherman; Umatilla; Union; Wallowa; and Wheeler. The "General" rate applies in areas not covered by the "Urban" or "Nonurban" rates. Or. Rev. Stat. § 653.025.

10 In Seattle, "hourly minimum compensation" represents the minimum wage plus tips actually received by an employee and reported to the IRS, and money paid by the employer towards an individual employee's medical benefits plan. Employers can satisfy this obligation through wages (including applicable commissions, piece-rate, and bonuses), tips, and medical benefits.

11 The enforcement agency publicly notified stakeholders that, on January 1, 2020, the state minimum wage will exceed the local rate. Separately, it informally confirmed the adjusted local rate for 2020 would be $12.54 per hour. Currently the city is considering the fate of the local minimum wage (and paid sick provisions) in light of state law concerning these issues. For example, a September 17, 2019 memo recommends repealing the minimum wage and paid sick provisions.

12 This applies to any rate change that occurs other than on January 1, 2020.

13 In July 2019, the Michigan Supreme Court heard oral arguments concerning a request by legislators to issue an advisory opinion concerning the constitutionality of 2018 lame-duck session amendments legislators made that overhauled the minimum wage (and paid sick) law. How the court decides the case could affect the applicable minimum wage rate and related rates.

14 Although a lower minimum wage rate applies for employees of small or seasonal employers, the state labor department contends that the general minimum wage rate applies to a covered tipped employee thereof. Note, however, that the legislative history suggests the general minimum wage rate only applies to tipped employees of seasonal employers. Nevertheless, for the purpose of this article, the rates above use those the state labor department contend apply. Small employers with tipped employees should consult employment counsel when determining the rate to pay tipped employees.

15 The minimum cash wage (MCW) for a tipped employee is $2.13 per hour. However, amendments to state law, effective January 1, 2020, impact employers covered by both state and local law because the state MCW will be greater than the local MCW.

16 Neither the ordinance, nor accompanying posters, state the minimum cash wage and maximum tip credit. However, currently under both state and federal law, employers must pay covered tipped employees a minimum cash wage of $2.13 per hour.

17 Amendments to state law will affect employers covered by state and local law because the state minimum cash wage will increase to $2.35 per hour on January 1, 2020.

18 This applies to any rate change that occurs other than on January 1, 2020.

19 This applies to any rate change that occurs other than on January 1, 2020.

20 This applies to any rate change that occurs other than on January 1, 2020.

21 This applies to any rate change that occurs other than on January 1, 2020.

22 Another notable FLSA change is that up to 10% of the salary amount may be satisfied via nondiscretionary bonuses, incentives and commissions that employers pay annually or more frequently. However, this article only addresses the salary or fee amount and does not address whether or how employers may use other compensation sources to satisfy exempt employee pay requirements. Employers with questions concerning this issue should consult counsel.

23 Until the FLSA rate increases in 2020, Connecticut, Iowa, and Oregon may have greater rates. Additionally, in Oregon, it is possible the amount might again exceed the FLSA rate at a later date because the standard relies on the state minimum wage, which will increase on July 1, 2020, 2021, and 2022, and, beginning July 1, 2023, and each subsequent July, will annually adjust based on consumer price index changes.

24 Employers must pay an employee on a salary or fee basis at a rate of not less than 2 times the state minimum wage for the first 40 hours of employment each week, excluding employer-furnished board or lodging.

25 An employee must earn a monthly salary equivalent to no less than 2 times the state minimum wage for fulltime employment (employment in which an employee is employed for 40 hours per week).

26 An executive or supervisor employee must earn in excess of the equivalent of the minimum wage for all hours worked in a workweek.

27 An employee’s regular compensation, when converted to an annual rate, must exceed 3,000 times the state minimum wage or the annualized FLSA rate set by the U.S. Labor Department, whichever is higher.

28 Employers must pay an executive or administrative employee a specific weekly salary, including board, lodging, or other allowances and facilities.

29 Other states that require employers to pay these employers the minimum wage, but which will not experience a minimum wage increase in 2020, include: Georgia ($5.15); New Hampshire ($7.25); North Dakota ($7.25); Rhode Island ($10.50); Utah ($7.25); and Wisconsin ($7.25). In Virginia ($7.25), although there is not a relevant exemption from the state minimum wage, the term “employee” does not include any person whose employment the FLSA covers.

30 Similar requirements exist in Indiana, Pennsylvania, North Dakota, and Wisconsin, but the minimum wage in each state is the same as the FLSA rate: $7.25 per hour.

31 The building services and hospitality industry wage orders do not incorporate, or contain, the commissioned employee exemption.

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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JD Supra Privacy Policy

Updated: May 25, 2018:

JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.

This Privacy Policy describes how JD Supra, LLC ("JD Supra" or "we," "us," or "our") collects, uses and shares personal data collected from visitors to our website (located at www.jdsupra.com) (our "Website") who view only publicly-available content as well as subscribers to our services (such as our email digests or author tools)(our "Services"). By using our Website and registering for one of our Services, you are agreeing to the terms of this Privacy Policy.

Please note that if you subscribe to one of our Services, you can make choices about how we collect, use and share your information through our Privacy Center under the "My Account" dashboard (available if you are logged into your JD Supra account).

Collection of Information

Registration Information. When you register with JD Supra for our Website and Services, either as an author or as a subscriber, you will be asked to provide identifying information to create your JD Supra account ("Registration Data"), such as your:

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Other Information: We also collect other information you may voluntarily provide. This may include content you provide for publication. We may also receive your communications with others through our Website and Services (such as contacting an author through our Website) or communications directly with us (such as through email, feedback or other forms or social media). If you are a subscribed user, we will also collect your user preferences, such as the types of articles you would like to read.

Information from third parties (such as, from your employer or LinkedIn): We may also receive information about you from third party sources. For example, your employer may provide your information to us, such as in connection with an article submitted by your employer for publication. If you choose to use LinkedIn to subscribe to our Website and Services, we also collect information related to your LinkedIn account and profile.

Your interactions with our Website and Services: As is true of most websites, we gather certain information automatically. This information includes IP addresses, browser type, Internet service provider (ISP), referring/exit pages, operating system, date/time stamp and clickstream data. We use this information to analyze trends, to administer the Website and our Services, to improve the content and performance of our Website and Services, and to track users' movements around the site. We may also link this automatically-collected data to personal information, for example, to inform authors about who has read their articles. Some of this data is collected through information sent by your web browser. We also use cookies and other tracking technologies to collect this information. To learn more about cookies and other tracking technologies that JD Supra may use on our Website and Services please see our "Cookies Guide" page.

How do we use this information?

We use the information and data we collect principally in order to provide our Website and Services. More specifically, we may use your personal information to:

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How is your information shared?

  • Content and other public information (such as an author profile) is shared on our Website and Services, including via email digests and social media feeds, and is accessible to the general public.
  • If you choose to use our Website and Services to communicate directly with a company or individual, such communication may be shared accordingly.
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  • Our Website may offer you the opportunity to share information through our Website, such as through Facebook's "Like" or Twitter's "Tweet" button. We offer this functionality to help generate interest in our Website and content and to permit you to recommend content to your contacts. You should be aware that sharing through such functionality may result in information being collected by the applicable social media network and possibly being made publicly available (for example, through a search engine). Any such information collection would be subject to such third party social media network's privacy policy.
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How We Protect Your Information

JD Supra takes reasonable and appropriate precautions to insure that user information is protected from loss, misuse and unauthorized access, disclosure, alteration and destruction. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. You should keep in mind that no Internet transmission is ever 100% secure or error-free. Where you use log-in credentials (usernames, passwords) on our Website, please remember that it is your responsibility to safeguard them. If you believe that your log-in credentials have been compromised, please contact us at privacy@jdsupra.com.

Children's Information

Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.

Links to Other Websites

Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.

Information for EU and Swiss Residents

JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.

  • Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.
  • Your Rights
    • Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.
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You can make a request to exercise any of these rights by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

  • Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.
  • Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.

California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

For non-EU/Swiss residents, if you would like to know what personal information we have about you, you can send an e-mail to privacy@jdsupra.com. We will be in contact with you (by mail or otherwise) to verify your identity and provide you the information you request. We will respond within 30 days to your request for access to your personal information. In some cases, we may not be able to remove your personal information, in which case we will let you know if we are unable to do so and why. If you would like to correct or update your personal information, you can manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard. If you would like to delete your account or remove your information from our Website and Services, send an e-mail to privacy@jdsupra.com.

Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

If you have any questions about this Privacy Policy, the practices of this site, your dealings with our Website or Services, or if you would like to change any of the information you have provided to us, please contact us at: privacy@jdsupra.com.

JD Supra Cookie Guide

As with many websites, JD Supra's website (located at www.jdsupra.com) (our "Website") and our services (such as our email article digests)(our "Services") use a standard technology called a "cookie" and other similar technologies (such as, pixels and web beacons), which are small data files that are transferred to your computer when you use our Website and Services. These technologies automatically identify your browser whenever you interact with our Website and Services.

How We Use Cookies and Other Tracking Technologies

We use cookies and other tracking technologies to:

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There are different types of cookies and other technologies used our Website, notably:

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JD Supra Cookies. We place our own cookies on your computer to track certain information about you while you are using our Website and Services. For example, we place a session cookie on your computer each time you visit our Website. We use these cookies to allow you to log-in to your subscriber account. In addition, through these cookies we are able to collect information about how you use the Website, including what browser you may be using, your IP address, and the URL address you came from upon visiting our Website and the URL you next visit (even if those URLs are not on our Website). We also utilize email web beacons to monitor whether our emails are being delivered and read. We also use these tools to help deliver reader analytics to our authors to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

Analytics/Performance Cookies. JD Supra also uses the following analytic tools to help us analyze the performance of our Website and Services as well as how visitors use our Website and Services:

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Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit http://www.aboutcookies.org which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at: privacy@jdsupra.com.

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