Three states and at least fifteen localities have increased their minimum wage effective July 1. 2018. Listed below are the minimum wage levels for these states and localities. This list is compiled from available information with some conflicting information. In addition, there may be other localities that have raised its minimum wage that was not included in this list. It is therefore key that you check with your state Department of Labor for rates and wages specific to your location.
STATES
Maryland: $10.10 generally
$12.25 for employers in Montgomery County with more than 50 employees
$12.00 for employers in Montgomery County with 50 or fewer employees
Nevada: $7.25 if employees receives qualified health benefits,
$8.25 if employees do not have health benefits
Oregon: $10.75 generally
$12.00 for Portland Metro Urban Growth Area
$10.50 for rural areas
LOCALITIES
Belmont, CA $12.50
Emeryville, CA $15.69 for employers with more than 55 employees
$15.00 for employers with less than 56 employees
Los Angeles, CA $12.00 for employers with more than 25 employees
(including LA County) $13.25 for employers with less than 26 employees
Malibu, CA $12.00 for employers with more than 25 employees
$13.25 for employers with less than 26 employees
Milpitas, CA $13.50
Pasadena, CA $13.25
San Francisco, CA $15.00
San Leandro, CA $13.00
Santa Monica, CA $12.00 for employers with more than 25 employees
$13.25 for employers with less than 26 employees
Washington, D.C. $13.25
Chicago, IL $12.00
Cook County, IL $11.00
Portland, ME $10.68
Minneapolis, MN $11.25 for employers with more than 100 employees
$10.25 for employers with less than 101 employees
Obviously, an increase in the minimum wage will impact the pay for most employees paid the minimum wage. Just because a retailer pays more than minimum wage, however, 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 must be 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, and piece work rates.
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. The information provided should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.
