2014 State Minimum Hourly Wage Changes and What You Need To Do:
As you prepare for your first payroll of 2014, Dailey Bookkeeping Services would like to make you aware of state minimum hourly wage changes that were announced as of late November 2013 that will take effect on January 1, 2014 unless otherwise noted:
- Arizona, to $7.90 for non-tipped employees and $4.90 for tipped employees
- California, to $9.00 for all employees (effective July 1, 2014)
- Connecticut, to $8.70 for non-tipped employees, $5.69 for service employees (waiters/waitresses at hotels and restaurants) and $7.34 for bartenders
- Florida, to $7.93 for non-tipped employees and $4.91 for tipped employees
- Missouri, to $7.50 for non-tipped employees and $3.75 for tipped employees
- Montana, to $7.90 for non-tipped and tipped employees
- New Jersey, to $8.25; employers subject to the Fair Labor Standards Act to $2.13 for tipped employees
- New York, to $8.00 (effective December 31, 2013)
- Ohio, to $7.95 for non-tipped employees and $3.98 for tipped employees (will apply to employers who gross more than $292,000 per year beginning in 2014)*
- Oregon, to $9.10 for non-tipped and tipped employees
- Rhode Island, to $8.00 for non-tipped employees and $2.89 (no change) for tipped employees
- Vermont, to $8.73 for non-tipped employees and $4.23 for tipped employees
- Washington, to $9.32 for non-tipped and tipped employees
Under the Fair Labor Standards Act (FLSA), the current federal minimum hourly wage is $7.25 per hour. But the FLSA does not supersede any state or local laws that are more favorable to employees. Therefore, if a state has a minimum hourly wage that is higher than the federal minimum, employers subject to the state minimum hourly wage law are obligated to pay the higher rate to employees working in that state. For more information regarding additional changes to a state’s minimum hourly wage, maximum tip credit and training/youth wage rates, visit each state’s website where applicable.
PAYROLL CHANGES – WHAT DO YOU NEED TO DO?
If you need to change any of your employees’ hourly rates to meet the new state minimum wage requirements, you must provide the new rate to your payroll provider with the first payroll with a check date on or after January 1, 2014 (and December 31, 2013 for NY). Remember paying your employees properly now will help you avoid fines, claims, and lawsuits down the line.
Remember to also update your labor law’s posters if you are located in one of the states that have a new minimum hourly wage! There are many sites on the web that charge for these posters, however both federal agencies such as, the U.S. Department of Labor and state agencies provide posters at no cost to employers.
If you are in need of help with your payroll, Dailey Bookkeeping Services would love to help you . The owner, Jacqueline Dailey is a Certified Public Bookkeeper, an Advanced Certified QuickBooks and QuickBooks Online ProAdvisor, a Sleeter Group Certified QuickBooks Consultant and a Xero Certified Bronze Partner. We work remotely so we can work with any company located in the U.S. If we can help you with this process or provide you with custom reporting, please give us a call. If we cannot help you, we will refer you to someone who can!