e-Alerts

e-Alert: HRK Minimum Wage Monthly Roundup – October 2020

By October 28, 2020 November 25th, 2020 No Comments

Payroll Compliance Monthly Roundup

 

Arizona

On September 17, 2020, Arizona announced a $12.15 minimum wage rate for 2021. Arizona’s minimum wage rate is adjusted annually to reflect changes in the cost of living. However, employers should be mindful of local laws, ordinances, and any rule or regulation that may increase an employee’s minimum wage rate. Please note that Arizona does not allow employers to pay subminimum wages to young workers, students, or apprentices.

Tipped Employees: Arizona allows employers to pay their tipped employees a minimum wage rate that is $3 lower than the state’s minimum wage rate. For 2021, the tipped employee minimum wage rate is $9.15.

Employers are required to subsidize a tipped employee’s minimum wage rate if the employee’s tips and gratuities are insufficient to allow the employee to receive wages that are at least equal to the state’s minimum wage rate.

Arizona employers must display a minimum wage poster to notify their employees of their rights under state law. The Industrial Commission of Arizona has published an updated minimum wage model poster employers can use to satisfy the poster requirement for 2021.

Arizona employers should review and adjust their payroll systems to make sure nonexempt employees receive wages that are at least equal to the state’s minimum wage rate.

Colorado

The Auditor for the City and County of Denver, Colorado, has updated their Minimum Wage notice. The updated notice clarifies that the $9.83 minimum wage for tipped workers applies specifically to food and beverage tipped workers.

Florida

Florida has published new minimum wage posters announcing an $8.65 per hour minimum wage rate for 2021. Florida’s minimum wage rate is adjusted annually to reflect changes in the cost of living. However, employers should be mindful of local laws, ordinances, and any rule or regulation that may increase an employee’s minimum wage rate. Florida employers should review and adjust their payroll systems to make sure nonexempt employees receive wages that are at least equal to the state’s minimum wage rate.

Tipped Employees: Florida allows employers to pay their tipped employees a minimum wage rate of at least $5.63 per hour.

A tipped employee is an employee who engages in an occupation where he or she customarily and regularly receives more than $30 per month in tips. Employers are required to subsidize a tipped employee’s minimum wage rate if the employee’s tips and gratuities are insufficient to allow the employee to receive wages that are at least equal to the state’s minimum wage rate.

Employers must display the 2021 minimum wage poster in a location where employees can easily see it. The Florida 2021 minimum wage poster is available in English, Spanish, and Creole.

Ohio

Ohio has published a new minimum wage poster announcing an $8.80 minimum wage rate for 2021. Ohio’s minimum wage rate is adjusted annually to reflect changes in the cost of living. The state minimum wage rate applies to employers who gross $323,000 or more per year.

Employers should be mindful of local laws, ordinances, and any rule or regulation that may increase an employee’s minimum wage rate. Employees not subject to the state minimum wage rate must pay their employees a wage rate that is at least equal to the federal minimum wage rate of $7.25.

Tipped Employees: Ohio allows employers to pay their tipped employees a minimum wage rate of at least $4.40 per hour.

A tipped employee is an employee who engages in an occupation where he or she customarily and regularly receives more than $30 per month in tips. Employers are required to subsidize a tipped employee’s minimum wage rate if the employee’s tips and gratuities are insufficient to allow the employee to receive wages that are at least equal to the state’s minimum wage rate. Ohio employers should review and adjust their payroll systems to make sure nonexempt employees receive wages that are at least equal to the state’s minimum wage rate.

Rhode Island

The Rhode Island Department of Labor and Training has updated their “Notice to All Employees – Information Employers Must Post” notice. The updated notice reflects an adjustment of the state minimum wage to $11.50/hour, effective October 1, 2020. In addition, the Unemployment Insurance Benefits section of the notice has been updated with new information on filing an unemployment insurance claim with the Rhode Island Department of Labor and Training. The poster revision date is October 12, 2020.

Washington

Washington state has announced a $13.69 minimum wage rate for 2021. Washington’s minimum wage rate is adjusted annually to reflect changes in the cost of living. However, employers should be mindful of local laws, ordinances, and any rule or regulation that may increase an employee’s minimum wage rate.

Tipped Employees: Although federal law allows for a lower minimum wage rate for tipped employees under certain conditions, Washington does not consider gratuities as part of an employee’s wages. Therefore, under state law, employers must ensure that their tipped employees receive the applicable minimum wage rate.

Youth Employment: State law allows employers to pay workers who are 14 or 15 years of age 85% of the state minimum wage rate. For 2021, the youth employment rate will be $11.64 per hour.

Washington employers must display a minimum wage poster to notify their employees of their rights under state law. The Washington Department of Labor and Industry has published an updated minimum wage model poster that employers can use to satisfy the poster requirement for 2021.

Washington employers should review and adjust their payroll systems to make sure nonexempt employees receive wages that are at least equal to the state’s minimum wage rate.

Employer Next Steps

If HR Knowledge processes your payroll, please contact your Client Account Manager to inform them of any employees’ hourly rates that need to be changed to meet the new state minimum wage requirements.

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This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this content, please contact HR Knowledge at 508.339.1300 or email us.

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