Total Articles: 21
State Minimum Wage Increases Effective January 1, 2012
Employers with multi-state operations must remain abreast of developments in state wage and hour legislation, including, but not limited to, increases in the state minimum wage. Pursuant to legislation providing for annual increases to state minimum wage rates based on increases in the U.S. Consumer Price Index and inflation, several states have announced minimum wage rate increases effective January 1, 2012. The increases are as follows:
State Minimum Wages in 2012
Although the 2012 federal minimum wage will remain unchanged at $7.25 per hour, six states have announced that their minimum wage will increase on January 1, 2012. Additionally, one state has proposed an increase, and another will announce its 2012 minimum wage either this month or in December. One state, however, announced that its minimum wage will not change in 2012.
Federal Judge in Massachusetts Rejects the Klinghoffer Rule
Judge Gertner of the U.S. District Court for the District of Massachusetts recently issued an opinion rejecting the Klinghoffer rule, potentially making it easier for a plaintiff to prevail on claims that his or her employer failed to pay the minimum wage. Under the Klinghoffer rule, which takes its name from the case of United States v. Klinghoffer Bros. Realty Corp., 285 F.2d 487 (2d Cir. 1980), courts apply a weekly-average method to determine whether an employer is in compliance with the minimum wage requirement of the Fair Labor Standards Act. Applying this rule, courts have declined to find a minimum wage violation as long as the total weekly average wage divided by the hours actually worked is at least equal to the applicable minimum wage. For example, assume an employee works 26 hours per week at a rate of $10 per hour, earning $260 each week. Even if this employee worked an additional four hours for which she was not paid, her average hourly wage would equal $8.67, exceeding the minimum wage.
2011 Minimum Compensation Rates.
Employers should review compensation rates for both exempt and nonexempt employees to ensure compliance with current legal thresholds. Set forth below are rates at the federal level, and for some states and localities, that apply to the most common job categories.
State Minimum Wage Changes to Take Effect January 1, 2011
Legislation providing for annual increases to state minimum wage rates based on increases in the U.S. Consumer Price Index and inflation has been enacted in a number of states. As a result of economic conditions in late 2009, these states did not increase their minimum wage rates for 2010. For 2011, however, several states, pursuant to such legislation, have announced minimum wage rate increases effective January 1, 2011. The changes announced to date are as follows:
Delayed Pacific Islands Minimum-Wage Increase: Why Should You Care?
President Obama's signature recently put the finishing touch on a delay of previously-scheduled increases in the minimum wage for American Samoa and the Northern Mariana Islands. Why should we care about this quiet action affecting these far-off places? Because it highlights the impact that boosting a minimum wage has in the longer term.
2010 Minimum Compensation Rates.
Employers should review compensation rates for both exempt and nonexempt employees to ensure compliance with current legal thresholds. Set forth below are rates at the federal level, and for some states and localities, that apply to the most common job categories.
Minimum Wage goes to $7.25 on 7/24.
On Friday, July 24, the last stage of the "phased-in" minimum wage will go into effect, bringing the federal minimum wage to $7.25 an hour.
Federal Minimum Wage Rate Increases on July 24, 2009.
This is a reminder that, effective this Friday, July 24, 2009, the federal minimum wage rate for covered non-exempt employees will increase from $6.55 per hour to $7.25 per hour. This is the third and final increase required by the 2007 Fair Minimum Wage Act, which amended the federal Fair Labor Standards Act (FLSA).
Reminder: Federal Minimum Wage Increases to $6.55 Per Hour on July 24, 2008.
This is a reminder that, effective July 24, 2008, the federal minimum wage rate for covered non-exempt employees will increase from $5.85 per hour to $6.55 per hour. This is the second of three increases required by the 2007 Fair Minimum Wage Act, which amended the federal Fair Labor Standards Act (FLSA). The final increase, to $7.25 per hour, will take effect July 24, 2009.
Another Big Change in Minimum Wage Coming.
Effective on Thursday, July 24, the federal Fair Labor Standards Act's minimum wage rises again from $5.85 to $6.55 per hour. This is the second step of the three-stage increase that became law last year. On July 24, 2009, the rate will jump to $7.25 per hour.
The New Federal Minimum Wage: Much Ado About Nothing for Many Until 2008.
Few Minnesota employers probably even noticed that, effective July 24, 2007, the federal minimum wage increased from $5.15 to $5.85 per hour. That’s because the seventy-cent increase only affected a handful of Minnesota employers. Minnesota’s minimum wage of $6.15 for large employers—those companies with annual gross sales made or business done of $625,000 or more—already exceeded the new federal minimum. The federal increase affected only Minnesota small employers—those companies with annual gross sales made or business done of less than $625,000. Because of their size, those companies were allowed to pay the previous Minnesota minimum of $5.25.
A Good Time To Audit Your Payrolls [Dealership Update].
For years, most states which had minimum wage or overtime laws had minimum wages which were equal to or lower than the federal minimum wage. They also typically recognized the same exemptions from overtime as the federal law. This made it relatively easy for dealers to comply with the wage-hour laws: just do what the federal law required and everything will be fine.
New Federal Minimum Wage Takes Effect.
Don't forget that the federal minimum wage will increase from $5.15 to $5.85 per hour, effective tomorrow (July 24, 2007). The increase will have little impact on most employers, however, considering that more than half of the states and the District of Columbia have established minimum wage rates that exceed the new federal rate. Employers that are subject to the new federal minimum wage should ensure that their payroll records reflect the change and that the proper posters are in place.
Impact of July 24 Federal Minimum Wage Increase Depends, in Part, on State Law Requirements.
As most employers are aware, the federal minimum wage rate increased to $5.85 today (July 24, 2007). As discussed in our prior Legal Alert, the federal minimum wage will increase to $6.55 per hour on July 24, 2008, and $7.25 per hour on July 24, 2009. Employers who use the “tip credit” may continue to pay employees $2.13 per hour; however, they must ensure that the employees’ total compensation, including tips, meets the new required minimum wage.
New, Legally Required Minimum Wage Poster Available for Free.
On Tuesday, July 24, the first of three increases in the federal minimum wage will take effect.
New Minimum Wage Poster Available.
The Department of Labor (DOL) has revised the federal minimum wage poster to include the new minimum wage rate.
New Federal Minimum Wage Takes Effect July 24, 2007 (pdf).
$5.85 wage rate takes effect in July.
Graduated Minimum Wage Increase Effective July 24, 2007 (pdf).
The first minimum wage increase under the Fair Labor Standards Act in
ten years has been approved by Congress and the President and will take effect
within the next 60 days. The Fair Minimum Wage Act of 2007 was passed as part
of the Iraq appropriations bill and signed by the President on May 25, 2007.
President Approves Increase in Federal Minimum Wage Rate.
President Bush has signed legislation increasing the federal minimum wage from the current level of $5.15 per hour to $7.25 by 2009. The “Fair Minimum Wage and Tax Relief” measure is part of a larger spending bill authorizing additional funds for the war in Iraq, among other things. This is the first increase in the federal minimum wage rate since 1997.
New Minimum Wage Law Signed First Increase In Ten Years (pdf).
On Friday , May 25, President Bush signed new minimum-wage
legislation which Congress passed a day earlier. The federal
minimum wage (currently $5.15 per hour) will rise in three
steps as follows:
