Minimum wage has changed in 18 American states – are you complying with each and every new law?

Posted on 9 January 2018 by IRIS FMP

Many Americans have rung in the new year with a pay rise as 18 states have started 2018 by implementing a higher minimum wage. The United States has a federal (nationwide) minimum wage of $7.25, a figure that has not been revised since July 2009. However, individual states may also set their own minimum wages.

The minimum wage rises by state are as follows:

Alaska – $9.84, an increase of $0.04
Arizona  – $10.50, an increase of $0.50
California – $11.00, an increase of $0.50
Colorado – $10.20, an increase of $0.90
Florida – $8.25, an increase of $0.15
Hawaii – $10.10, an increase of $0.85
Maine – $10.00, an increase of $1.00
Michigan – $9.25, an  increase of $0.35
Minnesota – $9.65, an increase of $0.15
Missouri – $7.85, an increase of $0.15
Montana – $8.30, an increase of $0.15
New Jersey – $8.60, an increase of $0.16
New York – $10.40, an increase of $0.70
Ohio – $8.30, an increase of $0.15
Rhode Island – $10.10, an increase of $0.50
South Dakota – $8.85, an increase of $0.20
Vermont – $10.50, an increase of $0.50
Washington – $11.50, an increase of $0.50

Advocates in the USA believe that the federal minimum wage should be $15, a more realistic ‘living’ wage. Indeed, in some of the aforementioned states individual cities have chosen to raise their minimum wages further, bringing them much closer to this figure. Examples are as follows:

Cupertino, California – $13.50
El Cerrito, California – $13.60
Los Altos, California – £13.50
Tacoma, Washington –  $12

Areas where employees will now earn at least $15 an hour include Mountain View, California; SeaTac, Washington; Seattle, Washington and Sunnyvale, California.

So, if you’ve got employees across the United States you may have some things to double check. Chances are someone, somewhere is affected by the new minimum wages. Disregarding minimum wage laws is punishable in the form of a $1,000 fine for every violation, so this should be taken extremely seriously.

The variable minimum wage climate in America demonstrates that when you are dealing with geographically diverse payrolls, even in-country, there can be discrepancies. Take all the necessary action to ensure that your payroll team, be that in-house or outsourced, has the relevant expertise to guarantee that everyone, everywhere is being paid correctly and legally.