The Governor has said he will sign the bill. The law becomes effective on July 1, 2013, technically, but the changes will not occur until 2014.
Here’s what employers need to know:
- On January 1, 2014, the hourly minimum wage will increase from $8.25 per hour to $8.70.
- On January 1, 2015, the hourly minimum wage will increase from $8.70 per hour to $9.00 per hour.
- Learners, beginnings and people under age 18 can still be paid “sub-minimum wage” for the first 200 hours of work at 85% of minimum wage. That will mean a minimum of $7.39 in 2014 and $7.65 in 2015.
- The bill also adjusts the “tip credit” to keep the employer’s share for waiters and waitresses at its current $ 5. 69 and for bartenders at its current $ 7. 34. In other words, the bill increases the tip credit percentages so that the employer’s share of these employees’ wages remains at their current amounts.
For employers, you should also use these changes to update your workplace posters effective January 1, 2014 as well to reflect these revisions to the current law.
There’s one week left to go in the legislative session. There are several more employment law bills under consideration. Stay tuned.