News, Articles & Updates

MINIMUM WAGE INCREASES IN CALIFORNIA AND OTHER STATES ACROSS THE COUNTRY

January 1, 2015

The year 2015 will bring about minimum wage increases in various cities in California as well as in many states across the country.  For most cities in California and for other states, the increase became effective on January 1, 2015.  For a few other cities in California the increase will become effective later in the year.

Employers must be alert to these changes in order to limit the risk of a wage or hour claim being brought by an employee.  Impacted employers need to:

  • Consider local governing minimum wage requirements.  Minimum wage must be paid at the highest rate mandated for the employer’s locale.
  • Increase wages for employees making less than the new minimum required amount.
  • Consider payroll processing implications when determining the effective date of the wage change.  For example, if wages are increased effective January 1, employees might have different base pays in a single pay period.
  • Review and amend company policies that are paid at minimum wage, for example: travel pay that is paid at minimum wage.
  • Review and amend, if applicable, pay scales for exempt staff considering all Federal, State, and local wage requirements. For example, specific California Wage Orders require that an exempt employee’s monthly salary must be at least two times the State minimum wage for full time employment.

Below is a summary of minimum wage increases for impacted cities in California. If you have any questions about your obligations under the new minimum wage laws, please contact us at info@mitzelgroup.com or reach out to your Mitzel Group, LLP attorney directly.

San Francisco:  Minimum wage increased to $11.05/hour on January 1, 2015.  Minimum wage will increase to $12.25/hour effective May 1, 2015.

San Jose:  Minimum wage increased to $10.30/hour on January 1, 2015.

Oakland:  Minimum wage will increase to $12.25/hour effective March 2, 2015.

Berkeley:  Minimum wage will increase to $11.00/hour effective October 1, 2015.

Richmond:  Minimum wage increased to $9.60/hour on January 1, 2015.

San Diego:  Minimum wage increased to $9.75/hour on January 1, 2015.  Minimum wage will increase to $12.25/hour effective May 1, 2015.

 

Below is a summary of minimum wage increases for other impacted states across the country.  All increases below became effective on January 1, 2015.

Arizona:  Minimum wage increased to $8.05/hour.

Arkansas:  Minimum wage increased to $7.50/hour.

Colorado:  Minimum wage increased to $8.23/hour.

Connecticut:  Minimum wage increased to $9.15/hour.

Florida:  Minimum wage increased to $8.05/hour.

Maryland:  Minimum wage increased to $8.00/hour.

Massachusetts:  Minimum wage increased to $9.00/hour.

Missouri:  Minimum wage increased to $7.65/hour.

Montana:  Minimum wage increased to $8.05/hour.

Nebraska:  Minimum wage increased to $8.00/hour.

New Jersey:  Minimum wage increased to $8.38/hour.

New York:  Minimum wage increased to $8.75/hour.

Ohio:  Minimum wage increased to $8.10/hour.

Oregon:  Minimum wage increased to $9.25/hour.

Rhode Island:  Minimum wage increased to $9.00/hour.

South Dakota:  Minimum wage increased to $8.50/hour.

Vermont:  Minimum wage increased to $9.15/hour.

Washington:  Minimum wage increased to $9.47/hour.

West Virginia:  Minimum wage increased to $8.00/hour.