Election Day 2014 proved to be a big win for employees who earn minimum wage.  Several states and cites approved measures to increase the minimum wage.  The city of Oakland, CA established its first ever minimum wage at $12.25/hour, which will go into effect on March 2, 2015.  Over the past few years, many states and cities have passed legislation that will increase minimum wage based on inflation rates, as tied to the Consumer Price Index.  While some states have not yet announced the new minimum wage, they may still see increases in the new year (e.g. Colorado).  Below is a chart with the minimum wage increases that are currently set to begin in 2015.

We may also soon see an increase in Illinois.  The state ballot had a nonbinding referendum question asking voters whether the minimum wage should be raised from $8.25/hour to $10/hour January 1, 2015.  Voters overwhelmingly voted “yes.”  Increase to the minimum wage, however, will require legislative approval.

Make sure to check back in a few weeks, and we’ll announce if any new minimum wage increases are set to hit your state or city.

*The minimum wage in Seattle will depend on the number of employees in the company and whether the company provides health benefits to its employees.

It’s that time of year! As the new year rolls in, 13 states are increasing their minimum wage. Unless noted otherwise, all increases to the minimum wage reflected below will become effective on January 1, 2014.

Although the Fair Minimum Wage Act of 2013, introduced in March 2013, would raise the federal minimum wage to $10.10 per hour in three annual steps, the current federal minimum wage remains at $7.25 per hour.  Employers in states with minimum wage provisions that differ from the federal law must pay the higher of the two rates.

Employers operating in one of the 13 states increasing minimum wage in 2014 should ensure that their payroll is in compliance.

*Note: some states have also increased the minimum tip credit for eligible employees.