labor lawAdivision of labor law center

On July 24, 2009 when the federal minimum wage increases, the Montana minimum wage will go up, as well.

The Montana minimum wage will increase from $6.90 to $7.25 per hour. Under state statute, the Montana minimum wage cannot be lower than the federal minimum wage.

When the federal minimum wage changes and/or when a state’s minimum wage changes, employers must display updated labor law posters for all employees. Updated posters are available now at www.laborlawcenter.com.

This is the second minimum wage increase in a year – in the middle of a recession – for beleaguered Montana employers. On January 1, 2009 the state minimum wage increased by 35 cents from $6.55 to $6.90 per hour. Now, less than 8 months later, it is slated to increase again.

Both the January and July Montana minimum wage increases were (more…)

The Montana minimum wage increased by 35 cents on January 1, 2009, from $6.55 to $6.90 an hour. The effective minimum wage for most Montana employees will increase again on July 24, 2009 when the federal minimum wage goes to $7.25 per hour.

More than 70% of Montana voters backed a hike in the minimum wage, supporting Initiative 151 in 2006. That initiative essentially accounts for the increase in the wage that became effective on January 1, 2009. Each year by September 30, the annual Montana minimum wage increase is announced, based on the CPI for the previous 12 months.

The Montana Department of Labor & Industry is the agency that tracked the outcome of Initiative 151.

On July 24, 2009, workers in Montana will again receive a minimum wage hike, when the federal minimum wage of $7.25 an hour kicks in. A worker who is covered by both a state and a federal minimum wage must receive the larger benefit. In Montana, (more…)

On January 1, 2009, the Montana minimum wage will increase by 35 cents, from $6.55 to $6.90 per hour. Montana law requires a cost-of-living increase to the state minimum wage.

The increase is announced each year no later than September 30, based on the Consumer Price Index or CPI for the previous 12 months. This year’s increase is 5.4% of the 2008 minimum wage of $6.55 per hour.

“This gives those Montanans who are struggling to keep up with higher energy and food prices some much needed help, “says Labor Commissioner Keith Kelly. Recently the National Association of State Work Force Agencies awarded Kelly the prestigious Eagle Award.  “As the nation’s economy continues to struggle, we know that here in Montana, we’re doing everything we can to minimize the impact.”

According to the Montana Department of Labor & Industry, more than 70% of (more…)

The U.S. Department of Labor announced a $250,000 Regional Innovation Grant to Montana to develop strategic plans that move the regional economy from a declining base in timber to high growth industries that offer workers better employment opportunities.

Activities to be conducted through this project will include the development of regional leadership initiatives as well as social network and regional asset mapping studies. Through these activities, Montana will identify which high growth industries to target for longer-term economic development efforts.

“With the nature of the area’s economy changing, western Montana is ready to focus on new ways to advance the region’s economy,” said Deputy Assistant Secretary for Employment and Training Douglas F. Small. “Montana will use this $250,000 Regional Innovation Grant to develop strong economic strategies that offer workers good employment opportunities in growing industries.”

The grant, awarded to the Montana Department of Labor and Industry’s Workforce Services Division, will assist the state in conducting extensive economic and leadership analysis. This analysis will lead to the development of strategic plans geared toward high growth industries.

Regional Innovation Grants are drawn from National Emergency Grant funds to assist state workforce agencies and local workforce investment boards, as well as their key partners, in the design and development of comprehensive and strategic regional plans focused on talent development that is aligned with the demands of the 21st century economy.

A number of grants have been awarded in 2008. These include a $5.5 million grant for laid-off workers in the mortgage industry in California. Another grant benefits workers in Iowa, Oklahoma, Kansas and Arkansas. Still another grant to Iowa will benefit workers laid off from the John Deere & Co. factories there.

A unique grant to Minnesota will help that state develop a strategy for economic growth in the counties bordering Wisconsin, in collaboration with Wisconsin.

When the U. S. Department of Labor determines that laid off workers are affected by federal trade policies, a Trade-WIA Dual Enrollment grants can be awarded. The layoffs must affect more than 50 workers and can be either single company or multiple company actions.

Businesses sometimes form a partnership with government and non-profit agencies. These partnerships could qualify for a Regional Innovation grant. These grants often boost local economy by providing training in new industries to laid-off employees.

Over the last couple of years, Secretary of Labor Elaine L. Chao has awarded several NEG (National Emergency Grants). Displaced workers in Lamar, Missouri were awarded close to $ 1.1 million in 2007 after the O’Sullivan Industries plant closed. Twenty counties in southern Illinois received a $250,000 grant for a new program, SI WORKS, to improve job opportunities and economic development.

NEGs are awarded at the discretion of the Labor Secretary for “significant dislocation events”. The purpose of the NEGs is to temporarily expand state and local service levels by providing time-limited funding. For example, when a plant closes or lays off personnel and that creates assistance beyond what the state can provide that state can apply for an Emergency Grant. To qualify, the state must include any discretionary funds in its state’s resources.

Different grants are awarded for different purposes. Regular NEG grants may be awarded when a layoff (from a single company or from multiple companies) affects 50 or more employees. These grants are also available when fewer than 50 layoffs negatively affect a rural or small community. Industry-wide layoffs in a region would also be covered by regular NEGs.

Areas affected by blizzards, wildfires, hurricanes, floods, earthquakes or other disasters are eligible for Disaster grants.

Trade-Health Coverage Infrastructure grants help eligible employees keep their healthcare insurance. To be awarded this grant, workers must be eligible for TAA (Trade Adjustment Assistance) or TRA (Trade Realignment Assistance).

Information regarding grant policies is available from several state and local employment agencies. To ensure that funds will be available, a community in need should being the grant process as soon as possible.

On October 2, 2007, the Montana Department of Labor and Industry issued a statement regarding an upcoming increase in the state minimum wage.

On January 1, 2008, the new state minimum wage went into effect with a 10 cent bump from $6.15 per hour to $6.25 per hour. Businesses earning less than $110,000 annually, however, are allowed to pay employees $4.00 per hour.

Montana Initiative 151 requires the state to annually adjust its minimum wage. The cost of living, as determined by the CPI (Consumer Price Index for All Urban Consumers) from August 2006 to August 2007, determines how the minimum wage is adjusted. In 2007, the CPI increase was 1.97%, which means an increase of 12.11 cents for Montana’s minimum of $6.15. Montana statute rounded the amount to 10 cents.

Montana will enjoy another minimum wage increase in 2008. State law mandates that the state minimum wage must be on par with the federal minimum wage. The federal minimum wage is slated to go up 70 cents from $5.85 to $6.55 on July 24, 2008. Since that is higher than the January 1, 2008 Montana minimum wage of $6.25 per hour, Montana’s rate will also increase to $6.55 on July 24, 2008.

Montana, along with only six other states, does not permit businesses to pay tipped workers less than the state minimum wage. As of the January 1, 2008 increase, according to Labor Commissioner Keith Kelly, tipped employees are entitled to $6.25 per hour. If the business earns less than $110,000 per year in gross revenue, however, the tipped employees can be paid $4.00 per hour.

Alaska, California, Minnesota, Nevada, Oregon and Washington are the other states that do not allow companies to pay lower wages to tipped workers. Tipped employees in these states, such as bellhops, valets and servers, must be paid between $5.25 and $8.07 per hour.

When federal and state minimum wage laws change, all Montana employers must update their labor law posters. Failure to post the updates can result in a fine. For information on updates, companies can go to www.laborlawcenter.com.

January 1, 2008 saw the first of a series of changes in minimum wage laws across the country. Fourteen states, including Arizona, California, Massachusetts and Vermont raised their state minimum wages on that day.

Later in the year, Illinois will add 25 cents to its minimum of $7.50 to $7.75 per hour. Michigan will also increase its minimum by 25 cents resulting in a new rate of $7.40 per hour. These changes will go into effect on July 1, 2008, along with changes in three other states.

Pennsylvania workers will receive a raise of 90 cents per hour to $7.15 per hour. West Virginia will add 70 cents to its minimum wage rate resulting in a raise from $6.55 to $7.25 per hour. Kentucky’s minimum will change from $5.85 to $6.55 per hour, which is a foreshadowing of the change in the federal minimum which will occur later in July of 2008.

On May 24, 2006, President George W. Bush signed the Fair Minimum Wage Act of 2007 into law. This law established a three-step system to raise the federal minimum wage.

On July 24, 2008, the federal minimum wage rate will increase from $5.85 to $6.55 per hour.

President George W. Bush signed the increase into law on May 24, 2006 as part of the Fair Minimum Wage Act of 2007. This Act established a three-tier system to increase the federal minimum wage. The bump on July 24, 2008 is the second step of the system.

The District of Columbia connects its minimum wage increases to the federal minimum wage increases, too. On July 24, 2008, D.C. employees will receive a minimum wage of $7.55 per hour, because D.C. law requires its minimum wage rate to be at least $1.00 greater than the federal rate.