Wednesday, January 8, 2014

Minimum Wage Alert for Multi-State Employers


The dropping of the Waterford Crystal Ball in Times Square, New York City also ushers in an increase in the minimum wage in New York and 13 other states.

The following states have adopted increases in minimum wage: 

  • Arizona
  • California
  • Colorado
  • Connecticut
  • Florida
  • Missouri
  • Montana
  • Ohio
  • New Jersey
  • New York
  • Oregon
  • Rhode Island
  • Vermont
  • Washington

In addition, some states, such as California and New York have already enacted further increases which will go into effect later this year or next year.

Some of these states have also increased the minimum amount to those employees who are tipped.  Typically an employer can take a partial "tip credit" against the minimum wage if the employee has signed a wage declaration for those tips.  Ask me about the pizzeria that did not properly calculate the tip credit for its bicycle delivery drivers and paid dearly.

Some municipalities have enacted even higher minimum wages, such as San Francisco and San Jose in California.

The minimum wage in Pennsylvania and under Federal Law remains $7.25, but there is talk in Washington of an increase.  As the Congress lumbers up to a reasonable facsimile of a functioning legislative body, we may see more action in this area.

Check with your human resources professional or labor counsel if you do business in more than one state.

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