labor lawAdivision of labor law center

On January 1, 2008 the Arizona minimum wage will increase by 15 cents from $6.75 to $6.90 per hour. This is an annual cost-of-living increase under the Arizona statute.

In accordance with Arizona’s new Minimum Wage Initiative, the Industrial Commission of Arizona is required to adjust the state’s minimum wage annually. The specific language of the initiative found in A.R.S. §23-363 (B) says, “The minimum wage shall be increased on January 1, 2008 and on January 1 of successive years by the increase in the cost of living.” The increase is based on the percent increase of the Consumer Price Index (CPI) of All Urban Consumers for the 12 months ending in August of the previous year. So, the 2008 increase is based on the CPI inflation index for August 2007.

The CPI for the 12 months ending August 2007 was 2%, which would result in an increase of 13.5 cents in the state minimum wage. The law requires that the rate be adjusted to the nearest 5 cents, so the new rate is $6.90 rather than $6.885.

In addition, the state recently issued a Policy Statement regarding the interpretation of “hours worked” under the Arizona Minimum Wage Act. In that ruling, the Industrial Commission of Arizona states that an employee who works a shift of less than 24 hours is considered “working” the entire time, even if he or she is permitted to sleep or engage in other personal activities when not occupied. For example, a switchboard operator who was allowed to sleep when not busy answering calls, would still be considered “working” for minimum wage purposes while asleep. The fact that the employer furnished sleeping facilities doesn’t change the employer’s obligation to pay her at least the state minimum wage.

For workers such as firefighters who may work a shift longer than 24 hours, the employee and employer can agree on bona fide meal periods and a bona fide sleep period, provided that they do not constitute more than 8 hours of a 24 hour period. Also, this provision applies only if the employee is normally able to enjoy the sleep period undisturbed.
The federal minimum wage is $5.85 per hour. Many states simply echo the federal law and require employers to pay employees $5.85 per hour, too. Other states have enacted state minimum wages with different rates, plus some interesting exceptions to the law.

Several states will increase the minimum wage in 2008, in addition to Arizona.

For instance, employers in Missouri in seasonal amusement or recreation do not have to pay overtime to workers until they’ve worked 52 hours in a week. All other employers in the state are required to pay overtime after 40 hours.

Montana companies who bring in $110,000 or less a year in revenue are legally allowed to pay workers only $4.00 per hour. The state minimum wage is $6.15 per hour and will increase January 1, 2008 to $6.25 per hour.

The highest state minimum wage will be Washington’s $8.07 beginning New Year’s Day, 2008.

In 2008, Massachusetts will join the top five with a state minimum wage bump from $7.50 to $8.00 per hour. Yet, agricultural employees earn only $1.60 per hour. Workers in professions that earn tips are legally guaranteed $2.63 per hour.

For a new worker in a new industry, some states allow employers to pay a lower wage for the first 90 days. Some states apply the 90 day provision to younger workers, too. Other states established laws where businesses can pay a worker who’s under the age of 18 at a lower rate, but only until they reach legal age.

Kansas has a state minimum wage of $2.65 per hour. Kansas employers covered by both federal and state law, though, are required to pay their employees the federal rate of $5.85. When both federal and state laws cover a business, the law that gives the worker the best deal is the one that applies. In Kansas, federal minimum wage provides greater benefit.

In Washington, the state minimum wage of $8.07 would apply, because it provides more benefit to the employee than the federal wage of $5.85 per hour.

 

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