labor lawAdivision of labor law center

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…)

A recent court ruling highlights the danger of employers claiming an employee was “laid off” when, in fact, the employee was terminated for another reason.

Historically, many employers have made the mistake of claiming that they were merely “laying off” a troublesome employee. However, with today’s prevalence of lawsuits for wrongful termination, that tactic can backfire.

In a recent case before the 8^th Circuit Court of Appeals, a rental car company branch manager, Terri Wallace, was laid off 15 days after she complained that her supervisor was sexually harassing her.

Wallace dropped the sexual harassment suit before it reached the jury.  

However, under Title VII of the Civil Rights Act of 1964, it is illegal to retaliate against an employee who files a sexual harassment complaint in good faith. In this case, “good faith” means without the intention of fraud.

The employer, DTG Operations, Inc., initially claimed that Wallace was part of a company-wide lay off due to economic reasons. (more…)

 Missouri state law (Section 290.502.2) requires that the state’s minimum wage must be adjusted every year based on the latest cost of living.

In charge of making that change is the Director of the Department of Labor and Industrial Relations. Director Todd Smith said that in August of 2008, the Department predicted an increase of 40 cents for 2009/

“A review of the Consumer Price Index (CPI) for July 2008 confirms the Missouri minimum wage rate will increase to $7.05 effective January 1, 2009,” he predicted at the time.

That prediction has become a reality. The Missouri minimum wage, pegged to the cost of living, went up precisely 40 cents on January 1, 2009, increasing from $6.65 to $7.05 an hour. According to the Missouri Department of Labor and Industrial Relations, last year’s increase was a mere 15 cents per hour. The much higher rise in the cost of living has driven the dramatic increase in the Missouri minimum wage rate.

Those businesses that earn less than a half-million dollars annually (more…)

Employers have already been warned that the state minimum wage will increase with the new year in Oregon, Washington, Florida, New Mexico, Vermont, Colorado, Arizona, Missouri, Montana, Ohio and Connecticut.

However, employers in other states also have to contend with minimum wage increases this year.

Even if an employer has no minimum wage employees, each increase means the employer must update his or her minimum wage posters. By law, employers are required to display a variety of labor law posters prominently in the workplace. Failure to do so can result in fines, penalties and citations.

On July 1, 2009 the Illinois minimum wage will increase by 50 cents, from $7.50 to $8.00 per hour. This is the final step in a 3-tiered increase introduced by the now-infamous (more…)

Minimum wage changes in 2009 will require every employer in the nation to update his or her labor law posters.

On January 1, 2009 eleven states will increase the minimum wage. The majority of these states implement annual cost-of-living increases in the state minimum wage.

The biggest minimum wage increase in the nation this January is $1.00 per hour, in New Mexico. This changes the New Mexico minimum wage from $6.50 to $7.50 per hour. This is a statutory change, not a cost of living change.

The Washington state minimum wage remains the highest in 2009, increasing by 48 cents from $8.07 to $8.55 per hour. The Oregon minimum wage is second, increasing by 45 cents from $7.95 to $8.40 per hour. Third place goes to Vermont, where the minimum wage increases by 38 cents from $7.68 to $8.06 per hour.

There is a 3-way tie for fourth place, between Massachusetts, Connecticut and California. That’s due to a 35 cent increase raising the Connecticut minimum wage from $7.65 to $8.00 per hour.

Massachusetts and California have minimum wages of $8.00 per hour that do not increase in 2009. It’s worth noting that when the Massachusetts and California (more…)