Fourteen States to Hike Minimum Wage in 2014
While much of the attention on minimum wages has focused on Congressional proposals to raise the federal minimum wage to $9.80 per hour, with the coming of the New Year company owners and human resources departments must be attentive to minimum wage increases quietly becoming effective in state and local jurisdictions. Most of these increases are baked into laws or constitutional provisions in 10 states mandating yearly minimum wage assessments tied to increases in the Consumer Price Index (CPI). Others will be imposed because of legislation enacted in 2013. Regardless of the basis for the increase, employers having operations in any of the states discussed below must plan to increase minimum wages effective January 1, except in California where wage changes take place on July 1, 2014.
Arizona. The minimum wage is tied to the CPI and will increase from $7.80 to $7.90 per hour. The tipped workers’ minimum is increasing by the same amount, to $4.90 per hour.
California. Legislation signed by Governor Brown this year will raise the minimum wage to $9.00 per hour on January 1, 2014. That same legislation will move the state minimum wage to $10.00 per hour on January 1, 2016. Employers with workers in San Francisco and San Jose should know that the existing higher citywide minimum wages also will increase on January 1. Employees in San Francisco must be paid $10.74 per hour, while those working in San Jose will have a minimum wage of $10.15 per hour. Unlike most states, California law does not permit tipped employees to be paid a lower wage.
Colorado. The statewide minimum wage is based on the CPI. It will increase on January 1 to $8.00 per hour from the current $7.78 per hour level. Tipped employees must be increased by 22 cents, to $4.98.
Connecticut. Governor Malloy signed legislation in 2013 that raises the minimum wage from $8.00 per hour to $8.70 per hour on January 1, 2014. That rate will increase again on January 1, 2015 to $9.00 per hour. The minimum wage rates for tipped restaurant and hotel workers will remain at current levels.
Florida. Due to the CPI increase over last year, the minimum wage will increase on January 1 by 14 cents, to $7.93 per hour, and to $4.91 per hour for tipped workers.
Missouri. The minimum wage is tied to the CPA and will increase from $7.35 to $7.50 per hour on January 1, 2014, except for tipped employees, who will have an increase from $3.68 to $3.75 per hour.
Montana. The statewide minimum wage for all employees will increase by 10 cents to $7.90 per hour.
New Jersey. Legislation passed in 2013 and signed by Governor Christie will increase the statewide minimum wage from $7.25 to $8.25 per hour on January 1, 2014. The rate for tipped employees will remain at $2.13 per hour.
New York. Governor Cuomo approved legislation passed in 2013 that raised the statewide minimum wage from $7.25 to $8.00 per hour on December 1, 2013. This does not affect lower wage rates for tipped food service workers and for certain other tipped employees. The same New York law signed in 2013 will raise New York’s minimum wage for non-tipped workers again on December 1, 2014 to $8.75 per hour, and a third time on December 1, 2015 to $9.00 per hour.
Ohio. Ohio’s minimum wage will move from $7.85 to $7.95 per hour on January 1, 2014 because of an increase in the CPI, but for tipped workers the rate will increase from $3.93 to $3.98 per hour.
Oregon. On January 1, 2014, Oregon’s minimum wage for all workers, whether or not tipped, will increase from $8.95 to $9.10 per hour because of an increase in the CPI.
Rhode Island. Governor Chaffee signed legislation passed in 2013 that increases the minimum wage for all but tipped workers from $7.75 per hour to $8.00 per hour on January 1, 2014. The tipped worker rate will remain at $2.89 per hour.
Vermont. Under legislation enacted in 2007, Vermont’s minimum wage will increase on January 1 from $8.60 to $8.73 per hour, except for tipped workers, whose rate will increase from $4.17 to $4.23 per hour.
Washington. On January 1, 2014, the State of Washington’s minimum wage for all workers, whether or not tipped, will increase from $9.19 to $9.32 per hour because of an increase in the CPI.
Employers with workers in municipalities that have local minimum wage or living wage ordinances and who therefore are paying higher wages locally are urged to confirm the wage rates in effect for 2014 in those localities.
[Updated January 2, 2014: We originally reported that all 14 states would have wage changes beginning January 1, California begins July 1. Also, we originally reported that Connecticut’s minimum wage would increase to $8.75, it is actually increasing to $8.70.]
For more information regarding this or other labor and employment issues, please contact Scott J. Wenner, past chair of Schnader’s Labor and Employment Practices Group.
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