As 2014 rolls around and the New Year bells toll, there are some important HR and payroll updates you need to know about. Fourteen states around the US are increasing their minimum wage rates in order to help workers keep up with the costs of living. Some of these states have been hit hard by the recession, with unemployment rates hovering around 10 percent since the start of the economic decline.
Its good news for the 3.8 million American workers who are earning at or below the Federal minimum wage (as of 2011 Department of Labor figures), who will now be taking a little more money home each week. It’s also a positive step in the right direction for tipped workers, many of whom will also be earning more per hour.
While there are objections from some lobbyists, who say that raising the minimum wage is bad for businesses that now have to pay more for labor, most agree that it’s time that we raised the living wage for families who struggle daily to pay for necessities. Not to mention the growing young workforce that’s trying to establish themselves during trough times. The DOL reports that, “Although workers under age 25 represent only about one-fifth of hourly-paid workers, they make up about half of those paid the Federal minimum wage or less.” Even President Obama is on the bandwagon, proposing that the Federal minimum wage be increased to $9.00 per hour across the board for all states under FLSA.
To help bring you up to speed, the following states will raise their minimum wage rate effective in 2014:
• Arizona – On January 1, 2014, goes up 10 cents from $7.80 per hour to $7.90 per hour.
• California – The state minimum wage will go up from $8.00 an hour to $9.00 an hour as of July 1, 2014 – a bit lagging behind other state planned increases for this year.
• Colorado – The state minimum wage increases to $8.00 per hour, up from $7.78 per hour on January 1, 2014.
• Connecticut – The state minimum wage will increase from $8.25 per hour to $8.70 per hour as of January 1, 2014, falling in line with New Jersey.
• Florida – State minimum wage changes to $7.93 per hour for non-tipped employees and $4.91 per hour for tipped employees, effective on January 1, 2014.
• Missouri – On January 1, 2014, the state minimum wage which is now only 10 cents higher then the Federal minimum wage, changes to $7.50 per hour.
• Montana – Raises its state minimum wage from $7.80 per hour to $7.90 per hour on January 1, 2014.
• New Jersey – On January 1, 2014, state minimum wage increases to $8.25 per hour for non-tipped employees. Employers who are subject to the FLSA must also pay $2.13 per hour for tipped employees.
• New York – As of December 31, 2013, the NY state minimum wage rises to $8.00 per hour from $7.25 per hour. This is the first time NY has raised the minimum wage in years, and it’s one of three planned wage increases.
• Ohio – A state that’s been hit hard by the recession, has announced that the state minimum wage will rise from $7.85 per hour to $7.95 per hour on January 1, 2014.
• Oregon – Recently announced it has approved an increase to it’s state minimum wage to $9.10 per hour, up from $8.95 per hour, as of January 1, 2014.
• Rhode Island – On January 1, 2014, the state minimum wage jumps from $7.75 per hour to $8.00 per hour, a 25 cents increase.
• Vermont – The state minimum wage goes up from $8.60 per hour to $8.73 per hour, a mere 13 cents hike, on January 1, 2014.
• Washington – Effective on January, 1, 2014, the Department of Labor & Industries reports that the state minimum wage will increase to $9.32 per hour, making it one of the highest paid states.
It’s important to note that the FLSA requires that all employers pay their workers at the current Federal Minimum Wage of $7.25 per hour, and that all workplaces display their labor law posters in prominent places for the education of employees. You can get your new 2014 labor law posters simply by clicking