Payroll
Is Your State’s Minimum Wage About to Change?
You've probably heard about President Obama's push to increase the federal minimum wage from $7.25 to $10.10 per hour. It's the latest of several attempts to increase the federal minimum wage. In addition, several states are following suit with minimum wage legislation of their own. With that in mind, I think now is a good time for a rundown of state legislation.
Apr. 10, 2014
You've probably heard about President Obama's push to increase the federal minimum wage from $7.25 to $10.10 per hour. It's the latest of several attempts to increase the federal minimum wage. In addition, several states are following suit with minimum wage legislation of their own. With that in mind, I think now is a good time for a rundown of state legislation.
State-by-State Rundown:
Alabama: Proposed legislation would gradually increase in the minimum wage over the next three years, from the current $7.25 per hour to $9.80 per hour by 2016.
Alaska: A proposed ballot initiative would gradually raise the minimum wage rate from the current $7.75 per hour to $8.75 per hour on Jan. 1, 2015 and $9.75 per hour on Jan. 1, 2016. After 2016, the minimum wage would adjust annually. It would either increase according to the change in the Anchorage Consumer Price Index or to one dollar greater than the federal minimum wage, whichever is greater.
Arkansas: A proposed ballot initiative would raise the Arkansas minimum wage rate from the current $6.25 per hour to $8.50 per hour by 2017.
Florida: Proposed legislation would raise the minimum wage from the current $7.93 per hour to $10.10 per hour.
Georgia: Proposed legislation would raise the minimum wage from the current $5.15 per hour to $10.10 per hour.
Hawaii: Proposed legislation would raise the minimum wage from the current $7.25 per hour to $10.10 per hour.
Idaho: A proposed ballot initiative would raise the minimum wage from the current $7.25 per hour to $9.80 per hour by 2017.
Illinois: The governor has called for a hike in the Illinois minimum wage from the current $8.25 per hour to at least $10.00 per hour.
Iowa: Proposed legislation would gradually raise Iowa's minimum wage over the next two years, from the current $7.25 per hour to $10.10 per hour by Jan. 1, 2016.
Kentucky: A bill currently working its way through the Kentucky House would gradually raise Kentucky's minimum wage rate over the next three years, from the current $7.25 per hour to an eventual $10.10 per hour.
Maryland: The governor has proposed a plan to raise the state's minimum wage from the current $7.25 per hour to $10.10 per hour by 2016.
Massachusetts: The Massachusetts Senate has passed a bill that would gradually raise the state's minimum wage over the next three years, from the current from $8.00 per hour to an eventual $11.00 per hour over three years. The bill is awaiting the governor's signature.
Michigan: Legislation introduced in 2013 would raise Michigan's minimum wage rate to $10.00 per hour from the current $7.40 per hour. A separate ballot initiative would gradually raise the minimum wage for non-tipped workers to $9.50 per hour over the next three years. It would also raise the minimum wage for tipped workers 85 cents each year from the current $2.65 per hour to an eventual $9.50 per hour.
Minnesota: The Minnesota House and Senate passed separate bills in 2013 that would raise Minnesota's minimum wage rate from the current $7.25 per hour. The legislature has yet to reconcile the bill and agree on final changes.
Missouri: Proposed legislation would raise Missouri's minimum wage from the current $7.50 per hour to as high as $10.25 per hour.
Nebraska: A bill working its way through the legislature would gradually raise Nebraska's minimum wage over the next three years from the current $7.25 per hour to an eventual $9.00 per hour.
New Hampshire: A proposed new bill would re-establish the minimum wage at $8.25 per hour in fiscal year 2015 and raise it to $9.00 per hour the following year.
New Mexico: The governor recently vetoed a bill that would have raised New Mexico's minimum wage rate to from $7.50 to $8.50 per hour. There is a joint resolution to put the minimum wage on the ballot for the voters to approve.
New York: The minimum wage is scheduled to increase gradually from the current $8.00 per hour to $8.75 per hour on December 31, 2014 and $9.00 on December 31, 2015. Pending legislation would accelerate that timetable.
Pennsylvania: Proposed bills could raise Pennsylvania's minimum wage from the current $7.25 per hour to as high as $10.10 per hour.
Rhode Island: Proposed legislation would raise Rhode Island's minimum wage from the current $8.00 per hour to $9.00 per hour in 2015.
South Carolina: Proposed legislation would raise South Carolina's minimum wage to at least $10.00 per hour.
South Dakota: Voters will decide this November whether to raise the state's minimum wage from the current $7.25 per hour to $8.50 per hour.
Vermont: Multiple bills have been proposed that would raise Vermont's minimum wage from the current $8.73 per hour to as high as $12.50 per hour.
Virginia: Proposed legislation would raise Virginia's minimum wage from the current $7.25 per hour to as high as $9.25 per hour by 2015.
Washington State: Washington has several proposals that would gradually raise the minimum wage from the current $9.32 per hour to $12.00 per hour by 2017.
West Virginia: The West Virginia House has approved legislation that will raise the minimum wage from the current $7.25 per hour to $7.85 per hour on July 1, 2014, and to $8.25 per hour in July of 2015.
Wisconsin: Proposed legislation would gradually raise Wisconsin's minimum wage over the next three years, from the current $7.25 per hour to an eventual $10.10 per hour.
Wyoming: Pending legislation would raise Wyoming's minimum wage for non-tipped employees from $5.15 per hour to $9.00 per hour. Tipped employees would see a minimum wage increase from $2.13 per hour to $5.00 per hour.
Split Pay Periods
Because increases usually take effect on a specific date, they usually result in a split pay period, where part of the pay period falls under the old wage and part falls under the new. It's important to pay close attention when this happens to avoid errors.