Thursday, July 10, 2014

States, Cities Wish to Increase the Minimum Wage

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Federal legislation to increase the federal minimum wage to $10.10 an hour has stalled in the U.S. Congress. In response, several states and cities have taken it upon themselves to pass laws increasing, or seeking to increase, the minimum wage. Currently, there are four states seeking to adjust minimum wage standards:

Illinois voters will decide in November on:

  • Minimum wage increase to $10 an hour, effective 1/1/15
  • Tip credit increase to $4 an hour, effective 1/1/15

Massachusetts legislation has already passed that will:

  • Increase minimum wage to $9 an hour, effective 1/1/15; increase minimum wage to $10 an hour, effective 1/1/16; and increase minimum wage to $11 an hour, effective 1/1/17
  • Increase tip credit to $6 an hour, effective 1/1/15; increase tip credit to $6.65 an hour, effective 1/1/16; and increase tip credit to $7.25 an hour, effective 1/1/17
  • Increase the Unemployment Insurance taxable wage base to $15,000 (from $14,000), effective 1/1/15

Rhode Island legislation has passed that will:

  • Increase minimum wage to $9 an hour, effective 1/1/15
  • Increase tip credit to $6.11 an hour, effective 1/1/15
  • Prohibit municipalities from establishing different minimum wage rates

In California there are four cities that have minimum wage developments:

  • Berkeley – A law has already passed that will implement a new minimum wage of $10 an hour, effective 10/1/14; implement a new minimum wage of $11 an hour, effective 10/1/15; and implement a new minimum wage of $12.53 an hour, effective 10/1/16
  • Oakland – A ballot measure in November will seek to increase the minimum wage and require paid sick leave
  • Richmond – A proposed law is seeking to establish a new minimum wage
  • San Francisco – A ballot measure in November will seek to increase the current minimum wage ($10.74 an hour)

Read the special double issue of PayState Update: Issue No. 14, Vol. 16 for more information on this topic. Pay News Now will continue to track the changes in minimum wage rates in these states and others as legislation develops.