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…)

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.

On January 1, 2008 the Montana minimum wage will increase by 10 cents from $6.15 per hour to $6.25 per hour. Under a unique provision to the state minimum wage law, businesses with annual revenue under $110,000 can still pay workers $4.00 per hour.

The Montana Department of Labor and Industry issued a wage determination on  October 2, 2007 that informed Montana employers of this change.

Under Initiative 151, the Montana minimum wage is adjusted annually based on the cost of living. The increase is based on the Consumer Price Index (CPI) for All Urban Consumers from August 2006 to August 2007, rounded to the nearest nickel.

In 2007, the increase for the COI was 1.97%. Based on the 2007 Montana minimum wage of $6.15, that would be an increase of 12.11 cents. Under the statute, this is rounded to 10 cents.

This is just the first of two minimum wage increases that Montana employers will see in 2008. That’s because the statute mandates that the state minimum wage be at least as high as the federal minimum wage. On July 24, 2008 the federal minimum wage will increase by 70 cents from $5.85 to $6.55 per hour. Because that rate is higher than the 2008 Montana minimum wage of $6.25, the state minimum wage will increase to $6.55 per hour on that date, as well.

Montana is one of just 7 states that does not permit employers to pay tipped workers less than the state minimum wage. According to Labor Commissioner Keith Kelly, tipped workers are entitled to $6.25 per hour after January 1, 2008 unless the employer’s gross revenue is less than $110,000. In that case, the tipped workers are entitled to $4.00 per hour.

The other states in the U.S. that do not allow employers to pay a lower hourly wage to tipped workers are Alaska, California, Minnesota, Nevada, Oregon and Washington. In all of those states, servers, bellhops, valets and other tipped workers must be paid between $5.25 and $8.07 per hour.

With two changes to the Montana minimum wage slated for 2008, it’s important for employers to update their labor law posters. Both state and federal law levy fines against employers who fail to display updated posters, such as those at www.laborlawcenter.com.

There are a number of states that are changing the minimum wage in 2008. 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. 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.

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.