Employers with multi-state operations must remain abreast of developments in state and local wage and hour legislation, such as increases in state minimum wages. Many states provide for annual increases based on the U.S. Consumer Price Index and inflation. The states and localities appearing below have increased minimum wages effective January 1, 2014, except as noted. Because hospitality and similar employers also need to be aware of changes to the permissible tip credit, which in turn affect the minimum wage they must pay to customarily tipped employees, such increases also appear below. Of course, these changes also affect overtime pay calculations.
Arizona – General minimum wage increases from $7.80 to $7.90 an hour. Minimum wage for tipped employees increases from $4.80 to $4.90.
California – General minimum wage increases from $8.00 to $9.00 an hour, effective July 1, 2014. (California law does not allow employers to take a tip credit against minimum wage for tipped employees.)
Colorado – General minimum wage increases from $7.78 to $8.00 an hour. Minimum wage for tipped employees increases from $4.76 to $4.98 an hour.
Connecticut – General minimum wage increases from $8.25 to $8.70 an hour. Minimum wage for tipped bartenders will remain $7.34 an hour and minimum wage for hotel and restaurant tipped employees other than bartenders will remain $5.69 an hour.
Florida – General minimum wage increases from $7.79 to $7.93 an hour. Minimum wage for tipped employees increases from $4.77 to $4.91 an hour.
Missouri – General minimum wage increases from $7.35 to $7.50 an hour. Minimum wage for tipped employees increases from $3.68 to $3.75 an hour.
Montana – General minimum wage increases from $7.80 to $7.90 an hour. (Montana law does not allow employers to take a tip credit against minimum wage for tipped employees.)
New Jersey – General minimum wage increases from $7.25 to $8.25 an hour. Minimum wage for tipped employees remains $2.13 an hour by virtue of federal law.
New York – General minimum wage increases from $7.25 to $8.00 an hour, effective December 31, 2013. Subject to certain caveats outside the hospitality industry, the minimum wage for tipped employees will remain $5.00 an hour for food service workers (i.e., servers, runners and bussers) and $5.65 an hour for service employees (i.e., delivery persons and coat checkers).
Ohio – General minimum wage increases from $7.85 to $7.95 an hour. Minimum wage for tipped employees increases from $3.93 to $3.98 an hour.
Oregon – General minimum wage increases from $8.95 to $9.10 an hour. (Oregon law does not allow employers to take a tip credit against minimum wage for tipped employees.)
Rhode Island – General minimum wage increases from $7.75 to $8.00 an hour. Minimum wage for tipped employees remains $2.89 an hour.
Vermont – General minimum wage increases from $8.60 to $8.73 an hour. Minimum wage for tipped employees increases from $4.17 to $4.23 an hour.
Washington – General minimum wage increases from $9.19 to $9.32 an hour. (Washington law does not allow employers to take a tip credit against minimum wage for tipped employees.)
Certain localities also have implemented minimum wage legislation. For example, in San Francisco, California, the minimum wage will increase on January 1 from $10.55 to $10.74 an hour. Moreover, San Jose, California, will increase its minimum wage from $10.00 to $10.15 an hour. (As stated above, California law does not allow employers to take a tip credit against minimum wage for tipped employees.) In addition, the Albuquerque, New Mexico minimum wage will increase from $8.50 to $8.60 effective January 1. However, the minimum wage in Albuquerque will be $7.60 if an employer provides healthcare and/or childcare benefits to the employee during any pay period and the employer pays an amount for these benefits equal to or in excess of an annualized cost of $2,500.00. Minimum wage for tipped employees will increase from $3.83 to $5.16.
Jackson Lewis attorneys are available to discuss these legislative changes and any other wage and hour issues applicable to your organization on a federal, state, or local level. Please contact the Jackson Lewis attorney with whom you regularly work.
