As we head into a brand new year employers will need to ensure their payroll systems and employee poster notices have been updated with the new minimum wage rates now in effect across the country.
The current federal minimum wage rate is $7.25 per hour. However, many states have adopted minimum wage rates higher than the federal rate. When the state rate and the federal rate are different, employers must pay employees at the higher rate.
The following states have adopted new minimum wage rates for 2019:
This easy-to-use reference guide details increases to minimum wage rates by State, along with the date on which the change takes effect. Affected employers will want to review their pay rates and update minimum wage poster notices as necessary to ensure compliance with local wage and hour regulations.
Visit the New York Department of Labor website for more information on minimum wage rates for tipped employees.
California law does not allow employers to use a tip credit. Visit the California Department of Industrial Relations website for more information on California wage orders.
* While the new minimum wage rate in Michigan was set to take effect as of Jan. 1, 2019, under the original
minimum wage law, the current law (as amended by Public Act No. 368) makes this change effective 90 days after the state legislature adjourns. According to the Michigan Chamber of Commerce, https://www.michamber.com/michigan-chamber-supports-senate-changes-minimum-wage-law this date will fall around the end of March 2019. The Michigan Department of Licensing and Regulatory Affairs (LARA), however, has not confirmed this and has yet to even mention the new law on its website. Therefore, Michigan employers with two or more employees should watch for more information about exactly when they must begin paying their employees at least $9.45 per hour in 2019.
For questions related to this or other matters related to employee benefits and compensation, please contact our office at 602-903-4047 or email firstname.lastname@example.org.
Joanna Morrow is an employer consultant and advocate who has worked in the employee benefits industry for over two decades. She works diligently to help employers overcome obstacles in their business by sharing her expertise in Human Resources, Benefits & Compensation, Process Mapping, Risk Management and ERISA/DOL/IRS compliance. She is a licensed life and health insurance professional in the State of Arizona and is an active member of the National Association of Health Underwriters (NAHU). Joanna is a senior partner at Arizona Benefit Consultants in Phoenix.