Nov 02, 2011

States Announce 2012 Minimum Wage Rates

Although the federal minimum wage will remain at $7.25 per hour in 2012, some states have announced that their minimum wage will increase in 2012. Below are the minimum hourly wage rates for these states effective January 1, 2012:

  • Arizona – Regular minimum wage increases from $7.35 to $7.65 per hour. Minimum wage for tipped employees increases from $4.35 to $4.65 per hour.
  • Florida – Regular minimum wage increases from $7.31 to $7.67 per hour. Minimum wage for tipped employees increases from $4.29 to $4.65 per hour.
  • Montana – Minimum wage increases from $7.35 to $7.65 per hour. Montana law does not allow employers to take a tip credit against minimum wage for tipped employees.
  • Ohio – Minimum wage increases from $7.40 to $7.70 per hour. Minimum wage for tipped employees increases from $3.70 to $3.85 per hour.
  • Oregon – Minimum wage increases from $8.50 to $8.80 per hour. Oregon law does not allow employers to take a tip credit against minimum wage for tipped employees.
  • Washington – Minimum wage increases from $8.67 to $9.04 per hour. Washington law does not allow employers to take a tip credit against minimum wage for tipped employees.

Other States

  • Vermont is expected to announce its 2012 minimum wage rate later this month, that will be effective January 1, 2012.
  • Colorado‘s Department of Labor and Employment has proposed a minimum wage increase from $7.36 to $7.64 per hour. It also proposed an increase for tipped employees from $4.34 to $4.62 per hour. If approved, the minimum wage increases will be effective January 1, 2012.

If the 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, please contact your employment counsel at Smith, Gambrell & Russell, LLP.


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