The world of employee compensation continues to increase in complexity for small to mid-sized organizations. Local, State and Federal legislation has increasingly focused on Minimum Wage, Pay Equity, and Pay Transparency. Just last year, 19 states increased minimum wage limits. In 2020, 24 states across the country increased or plan to increase their minimum wage during the year.
Below is a summary of recent changes to help you comply with your minimum wage requirements:
- Alaska: $10.19
- Arizona: $12.00
- Arkansas: $10.00
- California: $13.00 (based on employer size)
- Colorado: $12.00
- Connecticut: $12.00 (Sept. 1, 2020)
- Washington DC: $15.00 (July 1, 2020)
- Florida: $8.56
- Illinois: $10.00 (July 1, 2020)
- Maine: $12.00
- Maryland: $11.00
- Massachusetts: $12.75
- Michigan: $9.65
- Minnesota: $10.00 (based on employer revenue)
- Missouri: $9.45
- Montana: $8.65 (based on employer revenue)
- Nevada: $9.00 (July 1, 2020)
- New Jersey: $11.00
- New Mexico: $9.00
- New York: $11.80, $13.00 (Long Island and Westchester), $15.00 (NYC)
- Ohio: $8.70
- Oregon: $12.00 (July 1, 2020)
- South Dakota: $9.30
- Vermont: $10.96
- Washington: $13.50
Several cities and local jurisdictions are also increasing their minimum wage effective July 1, 2020. Some of these include:
- Chicago, IL: $13.50/$14.00, depending on employer size
- Minneapolis, MN: $11.75/$13.25 depending on employer size
- Saint Paul, MN: $9.25, $10.00, $11.50 or $12.50 depending on employer size
- Montgomery County, MD: $13.00, $13.25 or $14.00 depending on employer size
- Cook County, IL: $13.00
- San Francisco, CA: $16.07 per hour
- Los Angeles, CA: $14.25 or $15.00 per hour, depending on employer size
- Alameda, CA: $15.00
- Berkeley, CA: $16.07
- Emeryville, CA: $16.84
- Fremont, CA: $13.50 or $15.00 depending on employer size
- Pasadena, Santa Monica and Malibu, CA: $14.25 or $15.00 depending on employer size
- Milpitas, CA: $15.40 per hour
- Novata, CA: $13.00, $14.00 or $15.00 depending on employer size
- San Leandro, CA: $15.00
- Santa Rosa, CA: $14.00 or $15.00 depending on employer size
PROXUS has increasingly been called on by our clients for assistance in this area. As Human Resources, Finance, and Business leaders grapple with questions on how best to implement these changes and maintain compliance, our Director of Compensation, Dennis Shrenk, continues to be leveraged as a resource.
Often discussions include concerns around:
- How “aggressive” should we be? Do we simply move to the new minimum or something greater?
- How do we account for wage compression?
- How should we communicate this to employees? Do we only communicate to those affected or all employees?
- Are you able to produce multiple models for us to consider based on the overall impact?
PROXUS works hard to keep our clients aware of changes like the ones above, and to provide the information and resources necessary to address them.
If you would like assistance with managing minimum wage increases, salary structure development, or other compensation concerns, please contact Matt Roessler, Director of Business Development, at 215-654-9140 x 409 or MRoessler@Proxushr.com.