Just under halfway through 2017, minimum wage and overtime developments have shifted into overdrive. Proposals submitted by federal legislators from both sides of the aisle highlight the different approaches the country’s main political parties take to tackling labor and employment issues. States and counties struggle to assert their legislative dominance over their governmental subordinates. And local councils and agencies continue to push existing and proposed minimum wage ordinances.
Articles Discussing the Minimum Wage Under State Laws.
With the federal minimum wage stalled at $7.25 an hour since 2009, states, counties, and local governments have increasingly stepped in and passed legislation raising the minimum wage above the federal level. Because federal law does not prevent other jurisdictions from passing laws that are more protective of employees (the federal law establishes only a floor), the higher minimum wage rate in the employer’s jurisdiction applies.
Employers with employees in New York, New Jersey, and Connecticut should expect more than just holiday cheer this New Year. Increases in those state’s minimum wages may also bring about increased costs for businesses and organizations that utilize low-wage earners.
The 2014 federal minimum wage will remain unchanged at $7.25 per hour for non-tipped employees, and $2.13 per hour for tipped employees. However, one state’s minimum wage will increase on December 31, 2013 and eight states have announced their minimum wage will increase on January 1, 2014. Moreover, one state has proposed an increase, effective January 1, 2014.
With the New Year comes a minimum wage increase in 10 states: Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Rhode Island, Vermont and Washington. Each of these states has a higher minimum wage rate than the federal minimum of $7.25/hour. Employers in these states are required to pay the higher state minimum wage.