From labor disputes cases to labor and employment publications, for your research, you’ll find solutions on Bloomberg Law®. Protect your clients by developing strategies based on Litigation...
Minimum wages are set to rise in several states and local jurisdictions July 1.
“This new batch of midyear increases is actually a relatively recent phenomenon that corresponds with the rise of local minimum wage increases,” Michael Saltsman, managing director for the Employment Policies Institute in Washington, told Bloomberg Law. His organization generally opposes minimum wage hikes.
Businesses have taken action as well. Costco CEO Richard Galanti announced in a May 31 earnings call the company would use tax cut savings to boost its minimum wage to $14 per hour. Target recently announced a $12 minimum after unveiling an $11 minimum last year. JPMorgan Chase in January credited a tax windfall for its hike to $15.
Jack in the Box raised wages in California to meet a statewide increase to $11. And it hiked the price of an order of two tacos by 30 cents in some stores to cover it.
Businesses can establish their own minimum wage higher than what the law requires, which they often refer to as a starting wage. It may be a company policy or part of a collective bargaining agreement with a union.
The federal minimum wage has been $7.25 since 2009, but state and local governments have enacted higher wage floors in recent years. Typically, they include specific annual raises for the first few years and then increases annually in amounts tied to inflation.
“2013 is really when the current wave started,” David Cooper, a senior economic analyst at the Economic Policy Institute in Washington. “There were already seven states that had automatic adjustments for inflation, primarily on the west coast.” Cooper’s organization general supports minimum wage hikes.
Oregon, Maryland, and the District of Columbia will also raise their minimum hourly rate July 1. Maryland’s rate will increase to $10.10, while Oregon will hike their wage floor to $10.50, and the nation’s capital will bump the lowest hourly rate to $13.25. Several cities also will hike their wages, including Los Angeles (the city and county), San Francisco, Chicago, Minneapolis, and Portland, Me.
Some jurisdictions have different minimums that may apply depending on the number of employees a business has or what industry it’s engaged in.
San Francisco and Emeryville, Calif. will have the highest minimum wages among the jurisdictions raising their requirement minimum July 1, with both cities raising their wage floor to $15 per hour.
Only a handful of jurisdictions currently require a minimum wage higher than $15 per hour, according to the State and Local Minimum Wage Provisions Chart on Bloomberg Law’s Labor & Employment Practice Center. Emeryville, Calif., on July 1 will hike the hourly minimum to $15.20 for companies with 56 or more employees. Santa Monica, Calif., requires hoteliers in the city to pay at least $15.37. Seattle requires a minimum rate of $15.45 per hour if the employer doesn’t also offer medical benefits. And Los Angeles hotels with more than 150 rooms must offer their employees at least $15.66 per hour.
In most states, a business is allowed to pay an employee who earns tips from customers a lower wage as long as the employee’s total earnings meet the general minimum wage. California, Minnesota, and a few other states require employers to pay the same minimum wage to tipped employees as they have to pay others.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)