Minimum Wage rates go up in 2013

Posted on December 28, 2012 by Rick Rossignol

Because of changes in employment law, and minimum wages, employer need to review their exempt employees to make sure they still meet the salary test to be exempt. Below is a quick summary of the Federal, California, and the 13 states that have rates above the federal rates. Keep in mind in CA the salary test is 2 times the minimum wage. SF and SJ are going to be higher based on their minimum wage.

 

2013 SEES RISE IN MINIMUM WAGES

 

To be exempt from FSLA employee have to meet the salary test. Which is tied to the minumum wage. Employers should review compensation rates for both exempt and nonexempt employees, to ensure compliance with current legal thresholds. Set forth below are rates at the federal level, and for the states and localities that exceed federal levels for the most common job categories.

 

FEDERAL MINIMUM COMPENSATION CALIFORNIA
Nonexempt $7.25/hour $8.00/hour
San Francisco $10.55/hour (increase from 2012)
San Jose $10.00/hour (effective approximately Feb./Mar. 2013)
Executive Professional or Administrative $1971.66 monthly on salary basis $2,773.33/month on salary basis
Computer $27.63/hour $39.90/hour, $6,927.75/month or $83,132.93/year (increase from 2012)
Highly Compensated $100,000 total compensation (including minimum $455 minimum weekly salary or fee) not in CA
Licensed practicing Medical Doctor or Attorney; Teacher None $72.70/hour (increase from 2012)
Outside Sales None
In the following jurisdictions, rates higher than the federal rates prevail.
ALASKA Nonexempt $7.75/hour
ARIZONA Nonexempt $7.80/hour (increase from 2012)
COLORADO Nonexempt $7.78/hour (increase from 2012)
CONNECTICUT Nonexempt $8.25/hour
FLORIDA Nonexempt $7.79/hour (increase from 2012)
ILLINOIS Nonexempt $8.25/hour (increase currently under consideration)
MAINE Nonexempt $7.50/hour
MASSACHUSETTS Nonexempt $8.00/hour
MICHIGAN Nonexempt $7.40/hour
MISSOURI Nonexempt $7.35/hour (increase from 2012)
MONTANA Nonexempt $7.80/hour (increase from 2012)
NEVADA Nonexempt $7.25/hour (if qualifying health benefits available)
$8.25/hour (all others) (increase may be announced in April 2013)
NEW JERSEY Nonexempt $7.25/hour (increase to $8.50/hour currently under consideration)
NEW MEXICO Nonexempt $7.50/hour
OHIO Nonexempt $7.85/hour (only for employers with gross revenue of ≥$288,000/yr) (increase from 2012)
OREGON Nonexempt $8.95/hour (increase from 2012)
RHODE ISLAND Nonexempt $7.75/hour (increase from 2012)
VERMONT Nonexempt $8.60/hour (increase from 2012)
WASHINGTON, DC Nonexempt $8.25/hour
WASHINGTON STATE Nonexempt $9.19/hour (increase from 2012)
Outside Sales Exemption guaranteed salary, commission, or fee

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