If January’s minimum wage, tip, and overtime developments forecast what employers should expect throughout the remainder of the year, it could be a challenging 2020.
Articles Discussing The Minimum Wage Under The FLSA.
We remember when legislative and regulatory developments rarely occurred in December, but those days are behind us.
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.
This October there are no tricks, but there are plenty of treats (assuming you have a sweet tooth for minimum wage, overtime, and tip developments at all levels of government).
The September 19, 2019 edition of the Federal Register includes the updated minimum wage rates that must be paid to workers performing work on or in connection with federal contracts covered by Executive Order (E.O.) 13658, Establishing a Minimum Wage for Contractors. Beginning January 1, 2020, federal contractors must pay covered workers at least $10.80 per hour. The Department of Labor also gave notice that beginning January 1, 2020, covered tipped employees performing work on or in connection with covered contracts must be paid a cash wage of at least $7.55 per hour.
On July 18, 2019, voting largely along party lines, the U.S. House of Representatives passed legislation that would increase the federal minimum wage from the current $7.25 an hour to $15.00 an hour by 2025.
After six months of primarily internal Democratic Party wrangling, on July 18, 2019 the House of Representatives passed the Raise the Wage Act, which, if it became law, would progressively increase the federal minimum wage to $15.00 per hour over a six-year period. The House passage of the Bill comes at a time when an increasing number of states and local jurisdictions already have enacted minimum wage laws well above the federal minimum, which has been set at $7.25 per hour for a decade. Currently, more than half of the States have minimum wage rates higher than the federal minimum.
We’ll spare you the taxing introduction and jump straight to itemizing developments concerning the minimum wage, tips, and overtime.
It was a busy third month of 2019, so we will march right into discussing developments concerning the minimum wage, tips, and overtime.
In February, love was not the only thing in the air; wafting through legislative chambers across the country was the sweet smell of bills about the minimum wage, tips, and overtime. Many bills will be stood up, or ultimately ghosted. But for those that advance, there just might be a legislative love connection.
Executive Summary: As Democrats take over the House of Representatives this month, some will be pushing to increase the federal minimum wage, which has remained stagnant at $7.25 per hour for the past decade. Not content to wait for Congress, the “Fight for 15” movement has scored victories throughout the country by increasing wages locally. Many states and localities will be or have already begun raising the minimum wage incrementally until they reach $15. Against this shifting backdrop, employers with operations in multiple cities need to be aware of different minimum wage rates that may be applicable in certain localities, even if such rates differ from those in the rest of the state.
Time on 2018 has just about run out, so without delay, here are the developments impacting the minimum wage, tips, and overtime that occurred in 2018’s final month.
Usually legislative and regulatory developments slow down in the summer months, which is good news because July brings more pressing matters than reading bills or proposed rules, like eating too many hot dogs or yelling at an air conditioner. So to help employers work on their compliance tans – and avoid getting burned – below we will quickly recap this month’s minimum wage, overtime, and tip-related developments.
Employers with minimum wage, tip, and overtime allergies might dread spring, but given the few developments this month, they should only experience a mild case of May fever. On the other hand, many should expect June gloom because, although the days are becoming longer, there is limited daylight between now and when states and cities across the county begin raising their minimum wage rates on July 1.
It may not have been showering minimum wage, tip, and overtime developments in April, but there was a sprinkling at the federal, state, and local levels. The U.S. Supreme Court issued a decision that will impact federal Fair Labor Standards Act (FLSA) exempt classification litigation, federal wage and hour officials have been laboring away on FLSA-related issues and programs, and state and local legislators continue to shape the labor and employment landscape across the country.