Many states have scheduled increases in their minimum wage. Fourteen states have announced they will be raising their minimum wages the first of the year. A number of other states will adjust their rate annually based on the cost of living. In addition, some cities, counties, state governments, and companies have higher minimum wage rates than the state minimum.
Listed below are the minimum wage levels for each state for 2017. In states that index the wage to cost of living, the figure listed is an estimate pending that adjustment. For those states, the notation “Annual Indexed Increase’ is added and the actual rate should be verified. For states that have cities and locals with their own minimum wages, the notation “Check local requirement” is provided. It is also important to note that some states tie their minimum wage to the federal standard. Accordingly, any increase in the federal minimum wage will automatically apply in those states. The states that tie their minimum wage to the federal standard are noted. Finally, the list is just for the current published rates for 2017.
This list is compiled from available information some of which is inconsistent. It is therefore key that you check with your state Department of Labor for rates and wages specific to your location.
|Alabama||$7.25||Federal Minimum Wage|
|Alaska||$9.75||Annual Indexed Increase|
|Arizona||$10.00||Annual Indexed Increase|
|California||$10.50||Check Local Requirements|
|District of Columbia||$11.50|
|Florida||$8.10||Annual Indexed Increase|
|Georgia||$7.25||if business covered by Fair Labor Standards Act, otherwise $5.50|
|Illinois||$8.25||Check local Requirements|
|Iowa||$7.25||Check Local Requirements|
|Kentucky||$7.25||Check Local Requirements|
|Louisiana||$7.25||Federal Minimum Wage|
|Maine||$9.00||Check Local Requirements|
|Maryland||$8.75||then increasing to $9.25 as of July 2017|
|Massachussettes||$11.00||and $16.50 per hour for working on a Sunday|
|Minnesota||$9.50 / $7.75||$9.50 if large employers (over $500,000 in gross sales and $7.75 if small employers (less than $500,00 in gross sales)|
|Missouri||$7.65||Annual Indexed Increase and Check Local Requirements|
|Mississippi||$7.25||Federal Minimum Wage|
|Montana||$8.15||but $4.00 for business with gross annual sales of $100,000 (Annual Indexed Increase)|
|Nevada||$7.25 / $8.25||$7.25 if employees recieve health benefits, $8.25 if employees do not *(Annual Indexed Increase)|
|New Jersey||$8.44||Annual Indexed Increase|
|New Mexico||$7.50||Check Local Requirements|
|New York||$9.70||Check Local Requirements|
|Ohio||$8.15||but $7.25 for employers grossing $283,000 or less (Annual Indexed Increase)|
|Oregon||$9.75||Check Local Requirements|
|South Carolina||$7.25||Federal Minimum Wage|
|South Dakota||$8.65||Annual Indexed Increase|
|Tennessee||$7.25||Federal Minimum Wage|
|Washington||$11.00||Annual Indexed Increase and Check Local Requirements|
Obviously, an increase in the minimum wage will impact the pay for most employees paid the minimum wage. But, just because a retailer pays more than minimum wage does not mean it can ignore these increases.
An increase in the minimum wage may also impact the pay to commissioned salespersons and salaried employees. For example, a commissioned salesperson is exempt from minimum wage and overtime pay, only if over half of the employee's total earnings are from commissions, and the salesperson’s total earnings from commissions and base salary adds up to an effective hourly rate that is more than one and one-half times the state minimum wage. Any increase in the minimum wage, therefore, will automatically increase the minimum total compensation required for commissioned sales.
Similarly, an increase in the minimum wage is the impact it may have on the salary test for determining whether administrative and management employees are exempt from overtime. A number of states set the salary test as a multiple of the minimum wage. For example, in California a supervisor classified as exempt must be paid a monthly salary that is no less than two times the wages paid to a full-time minimum wage employee. There may be a number of other consequences from the increases of the minimum wage, such as increasing meal and lodging credits.
It is important for flooring dealers to be vigilant in determining whether their state or local governments have increased the minimum wage and whether that increase impacts other salary requirements. Given the impact of violating these requirements, it is recommended that competent legal or accounting counsel be consulted.
Notice: The purpose of this blog is to review the latest developments that are of interest to clients of Mr. King. The information contained is abridged from legislation, court decisions, and administrative rulings and should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.