labor lawAdivision of labor law center

 According to the Ohio Department of Commerce, the state of Ohio increased its minimum wage as of January 1, 2009.

The Ohio minimum wage, which tracks the cost of living, went up by 30 cents an hour. The old rate was $7.00 per hour and the new rate is $7.30.

The increase in Ohio is not the largest increase in the minimum wage nationwide. In Washington, the increase was 48 cents an hour – to $8.55 hourly from $8.07. Oregon experienced a 45-cent hike, bringing its rate to $8.40 hourly. Connecticut’s rate also went up by 45 cents an hour. The new Connecticut minimum is now $8.00 an hour.

Altogether, 11 states increased their minimum wage rates as of January 1, 2009.

The largest actual minimum wage increase was in New Mexico. Under a new law passed by voters in 2006, the rate went up $1.00 an hour, from $6.50 to $7.50. New Mexico’s increase was not based on the cost of living, however.

In November of 2006, voters in Ohio approved a constitutional amendment mandating that the minimum wage track the inflation rate annual. The state uses the Consumer Price Index (CPI) for urban wage earners and clerical workers for a 12-month period that ends each August.

Because the CPI climbed 4.6% between September 1, 2007 and August 21, 2008, Ohio’s minimum wage also showed an atypically large jump, as did the wage rates in several other states as well.

This January 1 the minimum wage for Ohio workers receiving tips also went up. The new rate is $3.65 hourly, an increase of 15 cents. If a tipped employee in Ohio does not earn an average of $3.65 an hour in tips, then the management is required to make up the difference.

Ohio law has an exception whereby smaller companies may pay their workers less than larger companies do. If revenue is below $267,000 in 2009, the company is allowed to pay $6.55 an hour. However, that will only be the case until July 24, 2009, when the new federal minimum wage of $7.25 an hour overrides lower rates.

New Mexico’s minimum wage hike for 2009 was the largest single increase in any state for January, 2009.

According to the New Mexico Department of Workforce Solutions, the New Mexico minimum wage increased  $1.00 an hour on January 1, 2009, from $6.50 an hour to $7.50 an hour. Minimum wage for overtime for most employees will be $11.25 an hour.

The New Mexico law has its share of exceptions. For example, seasonal employees in some counties are not under the protection of the minimum wage laws, nor are employees of cotton gins. Typically, both the overtime and the minimum wage laws are not applicable to genuine executives, administrators, professionals, supervisors, and superintendents.

Any employer who has not updated his or her New Mexico minimum wage poster should do so now.

Certain workers who are hired to perform investigative work for the federal government are covered by the Fair Labor Standards Act, otherwise known as the FLSA. State law exempts them from the overtime law, which requires that employees working more than 40 hours a week must be paid 1.5 times their regular rate for their overtime. Nevertheless, they are still entitled to the federal minimum wage, at the least.

The minimum wage in New Mexico, incidentally, does not cover those workers under 18 who have not graduated from high school. It is a seldom-utilized and little-known aspect of New Mexico labor law.

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Roughly a dozen states in the U.S. base their annual minimum wage rate hikes on regional inflation levels.

The state of Oregon is one of these. Because Oregon’s cost of living increased by a dramatic 5.37% between August 2007 and August 2008, the minimum wage rate also increased significantly.

The minimum wage went up 45 cents an hour on January 1, 2009, from $7.95 to $8.40 hourly. The increase is one of the largest such hikes in recent years, and results from the inflation rate.

“This increase is the direct result of the rapidly rising cost of living facing Oregon workers,” said Labor Commissioner Brad Avakian. The Commissioner added, “By helping workers and their families preserve their purchasing power in difficult times, our strong minimum wage law also benefits our local economies, where workers spend most of their paychecks.”

Some question the wisdom of a large increase during recessionary times. The law, however, was (more…)

Each year, the Vermont minimum wage goes up to match the cost of living as indicated by the Consumer Price Index (CPI).

Because of higher than usual inflation, the rate went up more than it normally does in Vermont for 2009. The Vermont minimum wage increased to $8.06 an hour on January 1, 2009. The previous rate was $7.68 an hour.

Like other states, Vermont’s minimum wage laws mandate that if the federal minimum wage is higher than the state level, then the state minimum must be adjusted upward to equal the federal rate. The federal rate will go up to $7.25 an hour in July of 2009, however, so the law is not applicable this year.

In fact, Vermont’s minimum wage is now in the top five nationwide, although still below the highest, Washington State, which is now $8.55 hourly. Oregon follows that, with $8.40 per hour.

The Vermont Department of Labor is the agency charged with enforcing state wage and hour laws. The Department also helps workers collect their unpaid wages. Several labor law posters must be displayed prominently in the workplace. Employers who fail to do so could face fines and other penalties. Among those required posters is the Vermont minimum wage poster. (more…)

The Washington minimum wage increased as of January 1, 2009, and the new rate is the highest in the nation. The new minimum wage rate is also the highest that the state of Washington has experienced since it linked the minimum to the cost of living.

According to the Washington L&I, or Department of Labor and Industries, the Washington minimum wage went up to $8.55 an hour for 2009. Each September, the L&I recalculates the minimum wage based on the Consumer Price Index, or CPI.

Any employers who have not updated their Washington minimum wage poster should do so ASAP. Employers are subject to sanctions, fines and penalties for not displaying updated posters.

Adjusting the minimum wage to the CPI is a result of an initiative approved by voters 10 years ago, in 1998, called Initiative 688. The state uses the CPI for Urban Wage Earners and Clerical Workers, or CPI-W.

As most readers know, the CPI is a national gauge, marking the cost (more…)