As of July 1, 2016, there are a number of cities and states across the U.S. which has implemented minimum wage rate increases. Businesses and employers that are based in these areas are recommended to make the necessary adjustments accordingly.
Minimum Wage Increases in Oregon
Employers and businesses which are based in the Frontier Counties must increase their minimum wage to $9.50. Employers which are located in the Portland Metro Area and other parts of Oregon must increase their minimum wage to $9.75.
Minimum Wage Increases In California and The District of Columbia
In the District of Columbia, the minimum wage has increased to $11.50. In California, the minimum wage increase varies by region. In San Francisco, the minimum wage is $13.00, in El Cerrito it is $11.60, in Los Angeles the minimum wage is $10.50, in Pasadena the minimum wage is $10.50 for any business which has 26 or more employees, and in Emeryville the minimum wage is $13 for companies with less than 55 workers and $14.82 for companies that have 56 workers or more. In Santa Monica the minimum wage has increased to $10.50 and in Sunnyvale the minimum wage is $11.00. In Berkeley, California the minimum wage is expected to increase to $12.53 by October 2016.
Minimum Wage Increases InMaryland, Minnesota, Illinois and Kentucky
In Maryland the minimum wage has increased to $8.75, but within Montgomery and Prince George Counties the minimum wage has increased to $10.75. For Illinois the minimum wage has increased to $10.50 and within Kentucky the minimum wage is $8.25. For Minnesota the minimum wage is expected to increase to $9.50 for large employers and $7.75 for smaller employers.
Understanding Your Responsibilities As An Employer
Employers will need to think of the effects that the minimum wage increases will have on their payroll processing systems. For instance, when wages increase on specific dates the workers may have distinct base pays within one pay period. It may also be necessary to evaluate and alter company policies which will be affected by the pay increases.
Businesses must also take into consideration the local requirements for minimum wage. The wages must be given at the highest rate which has been mandated within the locale where the business operates. Employees that make less than the new amount will need to have their wages increased accordingly.
It may also be necessary for some employers to amend or evaluate pay scales for staff members who are exempt, in accordance with state, local and federal requirements regarding wages. For instance, employers based in the state of California will have to account for wage orders that require the monthly salaries of employees who are exempt to be twice the minimum wage for the state for employment which is full time.
Employers who have further questions about minimum wage should speak with their payroll managers. Human Resources departments that are having difficulty adjusting to the new minimum wage requirements with their existing systems should also consider upgrading to an automated, digital payroll system.