By Susan Prince, J.D., M.S.L., Legal Editor
Dec 10, 2019 - HR Daily Advisor
Minimum wage increases will affect numerous states across the country in January 2020.
Under the Fair Labor Standards Act (FLSA), the current federal minimum wage is $7.25 per hour, but the FLSA does not supersede any state or local laws that are more favorable to employees. Therefore, if a state or municipality has a minimum wage that is higher than the federal minimum, employers subject to the state or local minimum wage law are obligated to pay the higher rate to employees working there. The minimum wage for federal contractors in 2020 is $10.80 per hour.
The map below shows the states that are increasing their minimum wages, including the new rates and amounts of the increases as of the date of publication of this article. We also provide a listing of the states increasing their minimum wages and the effective dates of the changes below the map.
New York State: $11.80 per hour. Increasing to: $12.50 per hour on 12/31/20 and annual indexing thereafter to continue increasing up to $15.00.
New York City:
Long Island & Westchester: $13.00 per hour. Increasing to: $14.00 per hour 12/31/20 and $15.00 per hour on 12/31/21. Annual indexing after 2021.
Alaska: $10.19 per hour.
Arizona: $12.00 per hour. Adjusted annually on January 1.
Arkansas: $10 per hour. Increasing to: $11.00 per hour on 1/1/21.
California: $13.00 per hour with 26 employees or more; $12.00 per hour with fewer than 26 employees. Scheduled wage increases (if no increases are paused) for 26 employees or more: $14.00 per hour on 1/1/21 and $15.00 per hour on 1/1/22, and then adjusted annually. For 25 employees or less: $13.00 per hour on 1/1/21; $14.00 per hour on 1/1/22; $15.00 per hour on 1/1/23, and then adjusted annually.
Colorado: $12.00 per hour. Adjusted annually on January 1.
Florida: $8.56 per hour. Adjusted annually on January 1.
Illinois: $9.25 per hour. Increasing to: $10.00 per hour on 7/1/20; $11.00 per hour on 1/1/21; and $12.00 per hour on 1/1/22.
Maine: $12.00 per hour. Adjusted annually on January 1.
Maryland: $11.00 per hour. Increasing to: $11.75 per hour on 1/1/21; $12.50 per hour on 1/1/22; $13.25 per hour on 1/1/23; $14.00 per hour on 1/1/24; and finally $15.00 per hour on 1/1/25.
Massachusetts: $12.75 per hour. Increasing to: $13.50 per hour on 1/1/21; $14.25 per hour on 1/1/22; and $15.00 per hour on 1/1/25.
Michigan: $9.65 per hour. Increasing to: $9.87 per hour on 1/1/21. Adjusted annually on January 1.
Minnesota: $10.00 per hour for large employers (annual gross revenue $500,000 or more); $8.15 per hour for small employers (annual gross revenue less than $500,000). Adjusted annually on January 1.
Missouri: $9.45 per hour. Increasing to: $10.30 per hour on 1/1/21; $11.15 per hour on 1/1/22; and $12.00 per hour on 1/1/23. Adjusted annually on January 1.
Montana: $8.65 per hour. Adjusted annually on January 1.
New Jersey: $11.00 per hour for employers with more than 5 employees; $10.30 per hour for seasonal employers, small employers with 5 or fewer workers, and agricultural employers.
Increasing to: $12.00 per hour on 1/1/21; $13.00 per hour on 1/1/22; and $14.00 per hour on 1/1/23 for employers with more than 5 employees. For seasonal employees and employers with 5 or fewer employees: $11.10 per hour on 1/1/21; $11.90 per hour on 1/1/22; and $12.70 per hour on 1/1/23. For agricultural employers: $10.90 per hour on 1/1/22; $11.70 per hour on 1/1/23. Adjusted annually on January 1.
New Mexico: $9.00 per hour. Increasing to: $10.50 per hour on 1/1/21; $11.50 per hour on 1/1/22; and $12.00 per hour on 1/1/23.
Ohio: $8.70 per hour for gross receipts of $319,000 or more; $7.25 per hour for gross receipts under $319,000. Adjusted annually on January 1.
South Dakota: $9.30 per hour. Adjusted annually on January 1.
Vermont: $10.96 per hour. Adjusted annually on January 1.
Washington: $13.50 per hour. Adjusted annually on January 1 after 1/1/21.
West Virginia: $9.50 per hour. Increasing to: $10.25 per hour on 1/1/21; $11.00 per hour on 1/1/22; and $12.00 per hour on 1/1/23.
D.C.: $15.00 per hour, then adjusted annually on July 1.
Nevada: $9.00 per hour for employees without healthcare benefits; $8.00 per hour for employees with healthcare benefits.
Oregon: $13.25 per hour in the Portland metro area; $12.00 per hour for the urban counties; and $11.50 per hour for the rural counties. The Portland metro area will increase to $14.00 per hour on 7/1/21 and $14.75 per hour on 7/1/22. The urban counties will increase to $12.75 per hour on 7/1/21 and $13.50 per hour on 7/1/22. The rural counties will increase to $12.00 per hour on 7/1/21 and $12.50 per hour on 7/1/22.
Connecticut: $12.00 per hour. Increasing to $13.00 per hour on 8/1/21; $14.00 per hour on 7/1/22; $15.00 per hour on 6/1/23, and then adjusted annually on January 1.
Delaware: $9.75 per hour. Increasing to: $10.25 per hour on 10/1/21.
The federal FLSA requires that a minimum wage be paid for all hours an employee is “suffered or permitted” to work for the employer (29 U.S.C. §203(g)) and that an overtime wage be paid for all hours “worked” over 40 in a week. The FLSA does not specifically define “hours worked” or place a limit on the number of hours an employee may work; it requires only that overtime be paid for any hours worked over 40.
Determining exactly what constitutes hours worked is essential in determining an employee’s compensation and compliance with both minimum wage and overtime requirements of the act.
Hours worked includes time during which an employee is “necessarily required to be on the employer’s premises, on duty or at a prescribed work place” (29 C.F.R. §785.7). This broad definition of hours worked may require that an employee be compensated for time the employer does not otherwise consider working time, such as travel time, waiting time and certain meal, rest and sleep periods, and time the employee is required to spend in training, at seminars, or in meetings.
The courts and the U.S. Department of Labor, however, have developed a de minimis rule, whereby employers may disregard insubstantial or insignificant periods of time beyond the scheduled working hours, if, as a practical administrative matter, such time cannot be precisely recorded.
If employees are checking e-mails for 2 or 3 minutes, employers will likely not have to pay for this time. But if employees are spending 10 to 15 minutes after work hours, employers will have to pay employees for this work time. Also, the FLSA explicitly permits the rounding of an employee’s start and stop times.
Hours worked for purposes of the FLSA does not include time spent on call, time spent waiting to work, or time when an employee is required to carry a pager or cell phone, provided the employee is otherwise free to effectively use the time for his or her own personal purposes. The FLSA does not obligate employers to pay employees for holidays, vacation, or sick days.
The rules are strict, but the penalties are stricter. Paying employees properly now will help you to avoid expensive fines, claims, and lawsuits down the line.