Minimum Wages

Posted on January 2, 2015 by Rick Rossignol

Minimum wages vary from state to state. There is a trend that cities within the states are passing their own minimum wages. Roughly 35 different locations have higher minimum wages than the Federal rate of $7.25. California not only has a state rate but different cities have passed minimum wage rates above the state rate.
It is really important that employers pay attention to minimum wage rates, In some states salary test for being exempt is tied to the minimum wage. California requires 2 times minimum wage to be exempt. This means employers with employees in Oakland, San Francisco, San Jose have higher rates. Details matter, employers should audit their pay practices, ensure that salaried exempt employee meets the salary test. If they do not meet the salary test it might be a good time to conduct a job analysis to ensure the jobs are classified correctly.

FEDERAL Nonexempt $7.25/hour $10.10/hour (federal contractors and subcontractors)
Executive $4551/week on a salary basis
Professional or Administrative $455/week on salary or fee basis
Computer $27.63/hour
Highly Compensated $100,000 total compensation (including minimum $455 minimum weekly salary or fee) Licensed practicing Medical Doctor or Attorney; Teacher None
Business Owner (20% minimum equity and engaged in management) None
Outside Sales None

In the following jurisdictions, rates higher than the federal rates prevail.
ALASKA Nonexempt $8.75/hour (increase from 2014)
ARIZONA Nonexempt .$8.05/hour (increase from 2014)
ARKANSAS Nonexempt $7.50/hour (employers with 4 or more employees) (increase from 2014)
CALIFORNIA Nonexempt $9.00/hour
Oakland $12.25/hour (increase from 2014, effective March 2, 2015)
San Francisco $11.05/hour (increase from 2014, effective January 1, 2015)$12.25/hour (effective May 1, 2015)
San Jose $10.30/hour (increase from 2014) Licensed Physician $75.19/hour (increase from 2014)
COLORADO Nonexempt $8.23/hour (currently under consideration; would be increase from 2014)
CONNECTICUT Nonexempt $9.15/hour (increase from 2014)
DELAWARE Nonexempt $8.25/hour (effective June 1, 2015)
FLORIDA Nonexempt $8.05/hour (increase from 2014)
HAWAII Nonexempt $7.75/hour (increase from 2014)
ILLINOIS Nonexempt $8.25/hour
MAINE Nonexempt $7.50/hour
MARYLAND Nonexempt $8.00/hour (increase from 2014)$8.25/hour (effective July 1, 2015)
MASSACHUSETTS Nonexempt $9.00/hour (increase from 2014)
MICHIGAN Nonexempt $8.15/hour (increase from 2014)
MINNESOTA Nonexempt $8.00/hour (employers whose annual gross volume of sales made or business done is at least $500,000)
$9.00/hour (employers whose annual gross volume of sales made or business done is at least $500,000; effective August 1, 2015)
MISSOURI Nonexempt $7.65/hour (increase from 2014)
MONTANA Nonexempt $8.05/hour (increase from 2014)
NEBRASKA Nonexempt $8.00/hour (increase from 2014)
NEVADA Nonexempt $7.25/hour (if qualifying health benefits available) $8.25/hour (all others)(increase may be announced in April 2014)
NEW JERSEY Nonexempt $8.38/hour (increase from 2014)
NEW MEXICO Nonexempt $7.50/hour Santa Fe $10.66/hour (increase may be announced in January 2015)
Albuquerque $7.75/hour (if qualifying healthcare and/or childcare benefits provided)$8.75/hour (all others)(increase from 2014)
NEW YORK Nonexempt $8.75/hour (increase from 2014, effective December 31, 2014)$9.00/hour (effective December 31, 2015)
OHIO Nonexempt $8.10/hour (employers with gross revenue of more than $297,000/yr) (increase from 2014)
OREGON Nonexempt $9.25/hour (increase from 2014)
RHODE ISLAND Nonexempt $9.00/hour (increase from 2014)
SOUTH DAKOTA Nonexempt $8.50/hour (increase from 2014)
VERMONT Nonexempt $9.15/hour (increase from 2014)
WASHINGTON, DC Nonexempt $10.50/hour (increase from 2014, effective July 1, 2015)
WASHINGTON STAT Nonexempt $9.47/hour (increase from 2014)
Seattle $10.00/hour (employers with fewer than 500 employees in the U.S.)2 $11.00/hour (employers with 500 or more employees in the U.S.)
(increase from 2014, effective April 1, 2015; subject to pending litigation)SeaTac $15.24/hour (hospitality/transportation employees) (increase from 2014)Outside Sales Exemption guaranteed salary, commission, or fee
WEST VIRGINIA Nonexempt $8.00/hour (increase from 2014)

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