Nov 19, 2010

2011 Brings Few Changes in Minimum Compensation Rates

Below are the minimum hourly wage rates for some states and localities effective January 1, 2011:

Arizona – Regular minimum wage increases from $7.25 to $7.35 per hour. Minimum wage for tipped employees increases from $4.25 to $4.35 per hour.

Montana – Minimum wage increases from $7.25 to $7.35 per hour. (Montana law does not allow employers to take a tip credit against minimum wage for tipped employees.)

Ohio – Regular minimum wage increases from $7.30 to $7.40 per hour. Minimum wage for tipped employees increases from $3.65 to $3.70 per hour.

Oregon – Minimum wage increases from $8.40 to $8.50 per hour. (Oregon law does not allow employers to take a tip credit against minimum wage for tipped employees.)

Vermont – Regular minimum wage increases from $8.06 to $8.15 per hour. Minimum wage for tipped employees increases from $3.91 to $3.95 per hour.

Washington – Minimum wage increases from $8.55 to $8.67 per hour. (Washington law does not allow employers to take a tip credit against minimum wage for tipped employees.)

Other States and Municipalities

Colorado has pending legislation to increase the minimum wage from $7.24 to $7.36 per hour for non-tipped employees, and from $4.22 to $4.34 per hour for tipped employees. A final measure should be ready later this month. Colorado employers covered by the Fair Labor Standards Act already are required to pay the higher federal minimum wage rate of $7.25 per hour.

Florida and Missouri have announced that they will not be increasing their minimum wage rates in 2011. Florida’s minimum wage will remain $7.25 per hour ($4.23 per hour for tipped employees), and Missouri’s minimum wage will remain $7.25 per hour ($3.63 per hour for tipped employees).

San Francisco will increase its minimum wage from $9.79 to $9.92 per hour.

If a minimum compensation rate for a state or municipality is higher than the federal minimum rate, then the higher rate must be paid.

To learn more about how minimum compensation rates may affect your company or if you have any questions regarding these issues, be sure to contact your employment counsel at Smith, Gambrell & Russell, LLP.


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