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The good news for employers is that most state minimum wages are holding steady in 2010. In January 2009, more than a dozen states increased their minimum wages. In 2010, only a few minimum wage changes are in effect.

The Kansas minimum wage increased from $2.65 to $7.25 on January 1, 2010. This is the first time in more than two decades that the Kansas minimum wage has increased. The change comes after more than a decade of efforts by Kansas Democrats. On December 31, 2009, Kansas had the lowest minimum wage of any state. Effective today, X states have lower minimum wages.

To be fair to Kansas, five states have no minimum wage whatsoever. They are Mississippi, Alabama, Louisiana, Tennessee and South Carolina.

In an unprecedented step, the Colorado minimum wage actually decreased by 4 cents from $7.28 per hour to $7.24 per hour today. Most employees in the state are still covered by the federal minimum wage of $7.25 per hour.

About a dozen states annually increase the minimum wage based on the cost of living. However, in most areas the cost of living has shown a decrease of 1% to 2%. While many state statutes prevent the minimum wage from being reduced, they have not been increased.

States that have skipped the annual increase in minimum wage this year include Ohio, Washington, Oregon, Vermont, Nevada, Montana, Missouri and Arizona.

In Florida, by statute the state minimum wage cannot be (more…)

The Vermont minimum wage in 2010 will remain at the current rate of $8.06 per hour. This is good news for employers in a state where the minimum wage normally increases every year.

Under state law, the Vermont minimum wage increases each year based on the cost of living. According to a press release issued by the Vermont Department of Labor, the cost of living fell by 1.5% between September 1, 2008 and August 31, 2009. Because the state law does not permit a decline in the minimum wage, it will remain at the current level until 2011.

The annual adjustment in the Vermont minimum wage is based on the Consumer Price Index or CPI. The increase each year is limited to a maximum of 5%.

“A steady minimum wage reflects our economic times, “ according to Labor Commissioner Patricia Moulton Powden. “The cost of living has fallen and the ability of employers to increase pay is limited by the recession.”

The Vermont minimum wage for tipped employees will also remain stable at $3.91 per hour for employees who earn at least $120 per month in tips for direct, personal service. However, those employees are still entitled to the minimum wage of $8.06 when tips and (more…)

The Oregon minimum wage will remain at $8.40 in 2010, according to Labor Commissioner Brad Avakian. The Commissioner recently announced that due to a decline of 1.48% in the cost of living, the state minimum wage would be unchanged.

This is the first time since 2002 that the Oregon minimum wage will not have an annual cost-of-living increase.

“Under the circumstances, a steady minimum wage is good for Oregon’s businesses and working people,” Commissioner Avakian said. He pointed out that with the economy struggling, this would allow minimum wage employees to maintain their purchasing power and contribute to recovery. Avakian added, “At the same time, employers who are in difficult financial situations can breathe a little easier because there labor costs will remain constant.”

At $8.40 per hour, the Oregon minimum wage is still the second highest in the nation. It is exceeded only by the Washington minimum wage of $8.55 per hour. (more…)

On January 1, 2010 the Kansas minimum wage will increase by $4.60 from $2.65 per hour to $7.25 per hour. The increase is one of the largest in recent memory, dwarfing the three 70-cent increases in the federal minimum wage between July 24, 2007 and July 24, 2009.

It is critical that every  employer prominently display a Kansas minimum wage poster, to avoid penalties and fines.

This move puts the Kansas minimum wage on a par with the minimum wages of 28 states including Alaska, Delaware, Georgia, Idaho, Indiana, Kentucky, Maine, Maryland, Nebraska, New Jersey, New York and Pennsylvania.

While having a minimum wage that is the same as the federal minimum wage may not seem like an astounding achievement, it represents a major change in philosophy for Kansas politicians.

Despite annual efforts by Kansas Democrats, the state minimum wage has been frozen at $2.65 per hour for more than a decade. Prior to New Year’s Day, Kansas (more…)

Florida employers must pay the federal minimum wage of $7.25 per hour in 2010. This rate has been in effect since July 24, 2009, and will continue unchanged throughout 2010.

Technically the 2010 Florida minimum wage will remain at $7.21 per hour. However, by law, Florida employers are required to pay the federal minimum wage when it is higher.

When an employer is covered by both the federal and state minimum wage, the employee is entitled to protection under whichever law provides the greater benefit. In this case, the federal minimum wage of $7.25 is higher.

Many states have minimum wage laws that apply to employers too small to be covered by the federal minimum wage. Florida does not. The state minimum wage applies to every employee covered by the federal minimum wage.

Tipped employees in Florida must be paid at least $4.23 per hour. If the employee does not average at least $3.02 per hour in tips over the payroll week, the employer must pay the difference in direct wages. This ensures that tipped employees always earn at least the minimum wage of $7.25 per hour when tips and wages are combined.

Florida voters passed the state minimum wage on November 2, 2004. At that time, citizens were frustrated with a federal minimum wage of $5.15 per hour that had (more…)