Midyear Wage-Related Changes to Occur July 1


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A number of wage-related changes are to take effect July 1 in several states and a host of municipalities that may require preparation by employers to ensure compliance but also to avoid challenges that quickly could crop up.

Wage Increases

The hourly minimum wage in the District of Columbia is to increase to $12.50 from $11.50; in Maryland, to $9.25 from $8.75; and in Oregon, the standard hourly minimum wage is to increase to $10.25 from $9.75, the Portland metro minimum wage is to increase to $11.25 from $9.75; and the nonurban counties minimum wage is to increase to $10 from $9.50.

Nevada’s hourly minimum wage is to remain unchanged at $7.25 for employees who are offered qualified health benefits from their employer and $8.25 for employees who are not offered health benefits.

Local minimum wage changes also are to take effect in municipalities in Arizona (Flagstaff), California (Emeryville, Long Beach, Los Angeles city and county, Malibu, Milpitas, Pasadena, San Francisco, San Jose, San Leandro, Santa Monica), Illinois (Chicago, Cook County), and Maryland (Montgomery County).

Employment Status

In South Dakota and Wyoming, changes would affect franchise employment relationships. In both states, neither a franchisee nor a franchisee’s employee are to be considered an employee of a franchisor notwithstanding any written agreements.

Other Payroll-Related Changes

Administrative fees related to wage garnishments and time limits for certain workers to bring legal actions also are to take effect in three states.

In Idaho, employers may deduct a one-time administrative fee of $10 to cover costs associated with administering a wage garnishment. The amount is to be deducted from the employer’s first answer to the garnishment.

In Illinois, certain administrative fines may be imposed by the Department of Healthcare and Family Services against employers, including a fine of up to $1,000 per payroll period against those found to have willfully failed to withhold or pay over income according to a properly served income withholding order.

In Nevada, the statute of limitations by which actions may be brought against an original contractor by employees of a subcontractor or another contractor employed under the first contractor is to be within two years after the date the wages should have been paid, rather than the previous requirement that such actions must commence within one year of when wages were owed.