06/23/20 - Minimum Wage Changes Effective July 1st, 2020

Dear Valued Clients,

As your advisor on the forefront of Compliance requirements, we would like to notify you of upcoming minimum wage changes effective July 1st, 2020.

Many states and municipalities have minimum wage requirements. When a state's or municipality's minimum wage rate is higher than the federal government's minimum wage rate (currently $7.25 an hour), employers in that state or municipality must pay their nonexempt employees the higher wage, except in rare situations when an employee is exempt from the state or municipal minimum wage but not the federal minimum wage. Conversely, when a state or municipality's minimum wage rate is lower than the federal minimum wage, employers in that state or municipality must pay their nonexempt employees the federal minimum wage, except in rare situations when an employee is exempt from the federal minimum wage but not the state or municipal minimum wage.

To help ensure that the minimum wage keeps pace with the rising cost of living, many states and municipalities adjust (or will adjust) their minimum wage rates annually. Others adjust their minimum wage rates periodically through legislation or ballot initiatives.

Across the US, numerous minimum wage changes will take effect on July 1, including statewide minimum wage increases in Illinois, Nevada and Oregon. Employers will also see changes to the minimum wage at the local level across California, as well as in Washington, DC; Chicago, Illinois; Cook County, Illinois; Montgomery County, Maryland; Minneapolis, Minnesota; St. Paul, Minnesota; and Portland, Oregon. In addition, Chicago and Virginia will repeal a number of exemptions to their minimum wage laws; Chicago will also add new obligations for employers that claim a tip credit.

The chart below sets forth the state minimum wage rates for all 50 states plus the District of Columbia. It also covers selected local minimum wage ordinances that apply to most or all employees who work within a particular jurisdiction, in contrast to ordinances that apply only to specific types of employers (such as those in Long Beach, California, and SeaTac, Washington) and to prevailing wage or living wage1 ordinances that apply only to employees of local governments and the contractors they hire. (reference from XpertHR)

 

Please reach out to the VertiSource HR team with any questions you may have surrounding minimum wage increases.