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2014 State Minimum Wage Increases
On January 1, 2014 the state minimum wages increased higher than the federal requirement of $7.25 an hour in 21 states, up from 18 two years ago. Another 9 states are expected to drift above the federal minimum by the end of 2014, marking the first time minimum pay in most states will be above the federal level.
All employers, especially employers with multi-state operations, should be up-to-date with the developments in state wage and hour legislation. It is important to note that these changes also affect overtime pay calculations, if applicable.
In addition, tied to the wage increases are state notice requirements. All states have specific laws related to the posting of minimum wage information; other states, such as New York, require employers to provide prior written notification of any changes to wage and overtime rates. Further, although a state may not require that employees be notified of a change in the minimum wage rate and overtime rate, it is a best practice for an employer to give written notice of such an increase.
Employers that do not post updated minimum wage notices or provide required notices of changes in the wage rate, as specified by the state statutes, may be liable for penalties and fines in accordance with state laws. Source: Society for Human Resource Management
For more information regarding the above or on THOMAS HOUSTON's Compensation Evaluation services, please contact our Sales Team at (800) 330-9000 or at info@thomashouston.com |
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FAQ
Q. Will increasing the minimum wage result in job losses for newly hired and unskilled workers in what some call a "last-one-hired-equals-first-one-fired" scenario? A. No, minimum wage increases have little to no negative effect on employment as shown in independent studies from economists across the country. Academic research also has shown that higher wages sharply reduce employee turnover, which can reduce employment and training costs. |
