By Kelline R. Linton,
Minimum wage rates in California, Connecticut, New York, and Rhode Island will soon increase due to recent legislation:
- California: from $8.00 to $9.00 (effective July 1, 2014), and subsequently to $10.00 (effective January 1, 2016);
- Connecticut: from $8.25 to $8.70 (effective January 1, 2014), and subsequently to $9.00 per hour (effective January 1, 2015);
- New York: from $7.25 to $8.00 (effective December 31, 2013), subsequently to $8.75 (effective December 31, 2014), and ultimately to $9.00 per hour (effective December 31, 2015); and
- Rhode Island: from $7.75 to $8.00 per hour (effective January 1, 2014).
The minimum hourly wage rates in ten states (Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Rhode Island, Vermont, and Washington) have already increased in 2013. In addition, New Jersey will decide on November 5 whether to raise the state’s minimum wage rate from $7.25 to $8.25.
Similarly, at the federal level, President Obama has recently called on Congress to pass legislation that would raise the federal minimum wage rate from $7.25 to $9.00 per hour, which would immediately affect any states with a minimum wage rate below $9.00 per hour.
In light of these continuing developments, we recommend that employers monitor the minimum wage increases in their area(s) and update their payroll practices as necessary.