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HR Payroll Administration And New Minimum Wages For States 2013

By December 12, 2012 February 19th, 2015 No Comments

business_woman_suit_skirtPayroll and benefits administration can be difficult to administer when the laws governing minimum wage changes.  There are pending changes that take place with the new calendar year, including new minimum wage requirements, dependent upon what state your organization does business within.

The Federal minimum wage will not change for the New Year, and will remain at $7.25 per hour, however some cities and states have announced new minimum wages effective January 2013. If the local minimum wage is higher than the a federal wage, the local, higher wage prevails.

Always be cognizant that there are recording and reporting requirements that may vary from municipality to municipality.

States Increasing Minimum Wage

Arizona: The Industrial Commission of Arizona will increase the minimum wage from $7.65 to $7.80 for non-exempt employees. This per hour rate becomes effective January 1, 2013. For tipped employees, the minimum rate increases from $4.65 to $4.80 per hour before adding tips.

Florida: The minimum wage will increase as of January 1, 2013 from $7.67 to $7.79 per hour. For tipped employees the minimum before tips are added increases from $4.65 to $4.77.

Montana: The Department of Labor & Industry announced the minimum wage will increase from $7.65 to $7.80 per hour effective January 1,2013 for non-exempt employees.

Ohio: The Department of Commerce announced the minimum wage will increase from $7.70 to $7.85 per hour for non-tipped employees effective as of January 1, 2013. Tipped employees minimum wage will increase from $3.85 to at least $3.93 per hour, before adding tips, as of January 1, 2013. These minimum wages will only apply to businesses with gross receipts of more than $288,000 annually.

Oregon: The Bureau of Labor & Industries announced the the minimum wage will increase from $8.80 to $8.95 per hour as of January1, 2012 for non-exempt employees.

Rhode Island: Two bills have been signed by the Governor to increase the minimum wage for non-exempt workers from $7.40 to $7.75 to be in effect as of January 1, 2013. Rhode Island employers are permitted to apply a credit from tips toward meeting minimum wage obligations for employees who are tipped. tipped employees, and sets a minimum cash wage tipped employees must be paid. The minimum wage a tipped employee should receive remains $2.89 per hour. The change to the tip credit is an increase from $4.51 to $4.86 per hour.

Washington: The Department of Labor & Industries announced the minimum wage will increase from $9.04 to $9.19 per hour for non-exempt employees, effective as of January 1, 2012.

Some changes to minimum wage are still under review or proposed and not yet enacted.

Colorado: The Department of Labor & Employment has proposed to increase minimum wages, from $7.64 to $7.78 per hour for non-tipped employees as of January1,2012. Also proposed is an increase to the minimum wage from to $4.62 to $4.76 per hour for tipped employees.

States Where Statutes Dictate Change and Minimum Wage Determination Is Pending

The minimum wage in Missouri and Vermont is slated to be adjusted on January 1. No announcements have been made concerning these states’ 2013 minimum wage.

With so many changes and pending changes, its important to stay ahead of these legislated wage adjustment to remain in compliance.

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