The Montana minimum wage will increase from $7.25 per hour to $7.35 per hour on January 1, 2011. Because Montana requires that tipped employees be paid the full minimum wage, they will also have a 10-cent per hour increase in the minimum rate.
Montana is one of nine states that adjust the minimum wage annually each January, to reflect the cost of living. The minimum wage is also adjusted each year in Washington, Oregon, Florida, Missouri, Arizona, Colorado and Ohio. Colorado law actually permits a reduction in the state minimum wage if the cost of living decreases. In other states, the wage must remain at least at the current level. There will be no increase in the minimum wage in Florida and Missouri this year, due to the weak economic performance in those regions.
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.
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…)
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.”
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.