As 2015 draws to a close, several states are preparing for minimum wage rate increases within their borders, effective over the next few weeks.
The Fair Labor Standards Act (FLSA) requires certain employers, as defined by the law, to pay a minimum wage for all hours an employee is suffered or permitted to work. The federal minimum wage rate has been set at $7.25 an hour since 2009. Individual cities and states have the power, however, to set their minimum wages at a higher rate than that of the federal minimum wage.
The states that have announced confirmed higher minimum wage rates include: Alaska, Arkansas, California, Connecticut, Hawaii, Massachusetts, Michigan, Nevada, New York, Rhode Island, South Dakota and West Virginia. All of these increases will go into effect on January 1, 2016.
Increases in minimum wage rates are also expected in Maryland, Minnesota and Washington D.C. later in 2016.
Some states choose to or are required by their state constitutions to update their minimum wage rates to reflect changes in cost of living or inflation rates.
Colorado has a proposal pending that would increase its minimum wage by one percent. If approved, the increase would also go into effect on Jan. 1
The interactive map below shows the states with minimum wage rate increases over the coming year, including the current and new rates for each state.
For a more detailed overview of state minimum wage rates, please consult the U.S. Department of Labor’s website: //www.dol.gov/whd/minwage/america.htm
Eight other states that are required to adjust their minimum wage rates in accordance with inflation and/or cost of living rates have announced that their minimum wage rates will remain at their current levels. These states include: Arizona, Florida, Missouri, Montana, New Jersey, Ohio, Oregon and Washington.
Even if an employer does not meet the FLSA’s definition of a “covered” enterprise, they may be subject to state or local minimum wage statutes. In any case in which there are multiple applicable minimum wage rates, employers are required to pay the higher rate.
Employers affected by these rate changes, or with questions about which minimum wage laws may or may not apply to them, should consult their employment counsel or compliance officer.
As a licensed provider of outsourced human resources solutions, G&A Partners acts as an invaluable resource and ally for businesses facing the confusing web of regulatory compliance. G&A Partners’ experienced human resource professionals understand the nuances of all federal and state labor laws, including the FLSA, so they can help companies expertly plan and execute procedural tasks surrounding government compliance. With G&A Partners managing your HR labor law and HR compliance, you can rest assured that your employees are afforded the protection of federal laws, and that you are protected from the risk of human resources noncompliance.
Learn how G&A Partners can help you protect your business and employees through HR labor law and compliance services by contacting us by phone at 1-866-634-6713 to speak with an expert or visiting www.gnapartners.com/get-started to schedule your free business consultation.
This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.