Tuesday, December 23, 2014

New Year, New Wage: Minimum Wage to Increase in Many States

By Sarah K. Ott*

On January 1, 2015, a number of states, including Ohio, will increase their minimum wage. In Ohio, the minimum wage will increase by fifteen cents per hour to $8.10 for non-tipped employees and $4.05 for tipped employees. Ohio’s law applies to employers with gross revenue of $297,000.00 and above. Ohio employers grossing less than $297,000.00 must only pay the federal minimum wage, which is $7.25 per hour to non-tipped employees and $2.13 per hour to tipped employees. Ohio employers must only pay minors aged fourteen and fifteen the federal minimum wage as well.

Some states are not waiting on the New Year to increases wages. California’s minimum wage increased to $9.00 per hour on July 1, 2014. In New York and West Virginia increases to minimum wage will be effective on December 31, 2014 ($8.75 per hour in New York and $8.00 per hour in West Virginia). Other states will see increases later in 2015. Delaware’s minimum wage will increase to $8.25 per hour on June 1, 2015, and the District of Columbia will see an increase to $10.50 per hour on July 1, 2015. Maryland will see two increases next year: to $8.00 per hour on January 1, 2015 and then to $8.25 per hour on July 1, 2015.

In recent years, cities have been enacting ordinances concerning minimum wage for workers in the city. On December 18, Louisville joined eleven other cities that increased minimum wage this year when the city council voted in favor of increasing the minimum wage for workers in the city from $7.25 to $9.00 by 2017.

The following table includes all increases to state minimum wages in 2015 (unless otherwise noted, all increases are effective January 1, 2015):

STATE
NON-TIPPED
TIPPED
Alaska
$8.75
$8.75
Arizona
$8.05
$5.05
Arkansas
$7.50
$2.63
Colorado
$8.23
$5.21
Connecticut
$9.15
$5.69
Delaware (effective 6/1/2015)
$8.25
$3.23
District of Columbia (effective 7/1/2015)
$10.50
$2.77
Florida
$8.05
$5.03
Hawaii
$7.75
$7.25
Maryland
$8.00
$3.63
Maryland (effective 7/1/2015)
$8.25
$3.63
Massachusetts
$9.00
$3.00
Minnesota (effective 8/1/2015)
$9.00 for larger employers;
$7.25 for smaller employers
$9.00 for larger employers; $7.25 for smaller employers
Missouri
$7.65
$3.83
Montana
$8.05
$8.05
Nebraska
$8.00
$2.13
New Jersey
$8.38
$2.13
New York (effective 12/31/2014)
$8.38
$5.oo for food service employees; $5.65 for other service employees; and $4.90 for resort hotel employees
Ohio
$8.10
$4.05
Oregon
$9.25
$9.25
Rhode Island
$9.00
$2.89
South Dakota
$8.50
$4.25
Vermont
$9.15
$4.58
Washington
$9.47
$9.47
West Virginia (effective 12/31/2014)
$8.00
$2.40


*Sarah K. Ott practices in all areas of labor and employment law. For more information about minimum wage and other wage and hour questions, please contact: Sarah K. Ott | sko@zrlaw.com | 216.696.4441