On 1 January 2019, 20 states (and the district of Colombia) raised their minimum wage. Eight states supported this increase in automatic inflation adjustments, six states increased wages through electoral measures, and the other six states saw increases due to legislation proposed in 2018.
One state, Nevada, may raise its minimum wage in 2019 pending review by the state labor commissioner.
With all these changes in place, employers must make their final preparations to ensure a smooth transition to some potentially new requirements. It is estimated that 5.2 million workers will be affected by wage changes.
First and for most employees, the federal minimum wage is $ 7.25 per hour, and the minimum federal contractor's wage is $ 10.35 per hour. However, these provisions of the Fair Labor Standards Act do not replace any government or local regulations that could affect your business. These rules take precedence over the minimum wage rates of the federal government.
The states that will increase their minimum wage requirements in 2019 include:
Alaska: $ 9.89 per hour
Arizona: $ 11 per hour
Arkansas: $ 9.25 per hour
California: $ 12 per hour for businesses with 26 or more employees, $ 11 per hour for businesses with fewer than 26 employees
Colorado: $ 11.10 per hour
Delaware: $ 8.75 an hour, from October 1, $ 9.25 nationwide
Florida: $ 8.46 per hour
Maine: $ 11 per hour
Massachusetts: $ 12 per hour
Michigan: $ 9.48 an hour
Minnesota: $ 9.86 per hour for large employers, $ 8.04 per hour for small employers.
Missouri: $ 8.60 per hour
Montana: $ 8.50 per hour
New Jersey: $ 8.85 per hour
New York: $ 11.10 per hour for most employers in New York State, $ 15.00 per hour for large employers and $ 13.50 for small employers in New York City, $ 12.00 per hour for Long Island and Westchester Counties
Ohio: $ 8.55 per hour
Rhode Island: $ 10.50 per hour
South Dakota: $ 9.10 per hour
Vermont: $ 10.78 per hour
Washington: $ 12 per hour
Washington, D.C.: $ 13.25, with effect from July 1 raised to $ 14.00
Employers should prepare
Employers should be fully prepared to raise the pay of workers below the minimum wage threshold. Most public enforcement agencies have given high priority to theft of wages, and failure to pay the appropriate minimum wage to workers is a serious violation.
If your company is located in an area where the minimum wage will increase and your employees' pay increases on January 1, employees must have been informed by January 7, 2019, at the latest. The only exception is if you have already considered the change in a timely statement of salary and this card meets all relevant legal requirements. In that case, you probably do not need to provide your employees with a separate salary statement.
- If your state or local government requires you to provide a notice of payment to your employees, it must include:
- Changes to the standard wage rate;
- Changes in overtime pay; Allowances (such as food or accommodation) that are claimed as part of the minimum wage.
If you need help administering a minimum wage increase (or other wage problems for your business), contact AccuServe Payroll today.