labor lawAdivision of labor law center

With the most recent hike in the federal minimum wage from $6.55 to $7.25 per hour, there are now 28 states with the same minimum wage. All of these states share the $7.25 minimum wage rate:  Alaska, Arizona, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Indiana, Kentucky, Maine, Maryland, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Dakota, Texas, Utah, Virginia, West Virginia and Wisconsin.

Some of these states, like Hawaii and Kentucky, had already implemented a minimum wage of $7.25. Others, such as Texas, Utah, Maryland and Indiana, adopt the federal minimum wage automatically. In some of those states, the July 2009 increase was relatively minor. The Florida minimum wage, for example, increased from $7.21 to $7.25 per hour while New York and New Jersey increased from $7.15 to $7.25 per hour.

Even such insignificant increases require employers to update their federal and state minimum wage posters, of course.

Four states have minimum wages lower than the federal rate. Kansas has the dubious honor of being the state with the lowest minimum wage at $2.65 per hour – although that rate will change later this year. The others are:

Arkansas                   $6.25

Minnesota                 $6.15

Wyoming                   $5.15

However, those states do not offer the lowest wages. Five states have never passed a minimum wage law: South Carolina, Mississippi, Alabama, Louisiana and Tennessee. In those states, wages are a private matter between the employer and the employee. Unless the employee is covered by the federal minimum wage law (and most are), the employer can pay any hourly wage he or she likes.

Thirteen states plus the District of Columbia have minimum wages that are higher than the federal rate. The are, in alphabetical order:

California                              $8.00

Colorado                               $7.28

Connecticut                          $8.00

District of Columbia             $8.25

Illinois                                    $8.00

Massachusetts                     $8.00

Michigan                               $7.40

Nevada                                  $7.55

New Mexico                          $7.50 

Ohio                                       $7.30

Oregon                                  $8.40

Rhode Island                        $7.40

Vermont                                $8.06

Washington                          $8.55 

The highest state minimum wage is in Washington, at $8.55 per hour. Oregon is second at $8.40 per hour while Vermont is third with a minimum wage of $8.06 per hour. Those states are likely to remain in the top 3, since each of them implements an annual cost-of-living increase

Illinois, Massachusetts, Connecticut and California are tied in fourth place (more…)

The Nebraska minimum wage will increase from $6.55 to $7.25 per hour on July 24, 2009. This is the same day as an increase to the federal minimum wage under the FLSA.

The federal Fair Labor Standards Act (FLSA) applies to employers who engage in interstate commerce, or who earn at least $500,000 per year. FLSA may also individual workers who are engaged in interstate commerce, even when the federal law does not apply to the entire business.

Federal, state and local government agencies are covered under FLSA, as are schools, hospitals and health care facilities. The U. S. Department of Labor’s Wage and Hour Division, www.dol.gov, enforces the FLSA.

In this struggling economy, an increase in the minimum wage could be a hardship to employers. The increase in 2009 is the last scheduled increase for at least a year. At present there is no federal minimum wage increase scheduled for 2010.

Many employers in Nebraska are covered by the FLSA. Those that do not fall under federal jurisdiction are covered by the Nebraska state minimum wage laws.

The Nebraska minimum wage mirrors the federal minimum. (more…)

 On July 24, 2009 the Maryland minimum wage increases from $6.55 to $7.25 per hour, along with the federal minimum wage. That is an increase of 70 cents, and an increase of $2.10 in just over two years.

By statute, when the federal minimum wage increases, the Maryland minimum wage does so, as well.

The other states on the same schedule are Nebraska, Kentucky, Idaho, Indiana, North Carolina, North and South Dakota, Oklahoma, Texas, Virginia, and Utah.

State minimum wage laws vary widely and dramatically, which is one reason why employers should always have an updated state minimum wage poster displayed, as the law requires.

More than half of the states in the U.S. have rates that are above the federal minimum. The rest are either equal to or below the federal level. Some states have a cost of living increase and some do not.

Five states do not have minimum wages. They are Louisiana, Alabama, Mississippi, Tennessee, and South Carolina. Employers in those states who are not covered by federal minimum wage laws could legally pay their workers 10 cents an hour. Whether or not they would find anyone willing to work for that rate is another matter.

Among the states that have established minimum wage laws, the hourly rates vary by almost $6 an hour. At the high end of the chart is Washington State, with a minimum of $8.55 hourly. At the very bottom is Kansas, with a pay rate of $2.65 an hour. The difference between the two states is $5.90 an hour.

In second place is Oregon, at $8.40. The Vermont minimum wage is (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…)

The Arizona minimum wage will increase by 35 cents, from $6.90 to $7.25 per hour on January 1, 2009. This is the first annual cost-of-living increase under the new Arizona minimum wage law. The increase is based on the annual inflation rate as reported by the CPI, the Consumer Price Index.  

On November 7, 2006, the Arizona voters approved Proposition 202, also known as the “Raise the Arizona Minimum Wage for Working Arizonans Act.” Under A.R.S. 23-364(A), which became effective January 1, 2007, the Industrial Commission of Arizona was given the authority to enforce and implement the Act.  Effective January 1, 2008, Arizona’s minimum wage increased to $6.90 per hour.  

Every employer covered under the Act is required to pay each employee wages not less than this amount, according to the Industrial Commission of Arizona.Effective January 12, 2008, final Administrative Rules under Title 20, Chapter 5, Article 12 were approved and are currently in effect.  

The Arizona minimum wage applies to part-time and temporary workers, as well as full-time permanent workers.  

Arizona permits employers to take up to (more…)