Several states and jurisdictions have already raised their minimum wage rates for 2023, most recent was Connecticut whose minimum wage rate increased to $15 per hour on June 1st of this year. On September 30, 2023, Florida will raise their standard minimum wage rate to $12 per hour and their tipped minimum wage rate to $8.98 per hour. Many other state and local jurisdictions have plans to change rates at different times throughout this year. Keeping up with wage and hour laws is a challenging task so you should continually check which rules apply to your employees and locations as rates can change unexpectedly.
Many states and local jurisdictions are raising their rates effective on July 1st of this year. In an effort to keep you up-to-date and compliant with minimum wage requirements, here is what you need to know:
State Minimum Wage Rate Changes as of July 1, 2023:
District of Columbia
Standard rate: $17 per hour
Tipped rate: $8 per hour
More information on DC Minimum Wage Increase
Nevada
$10.25 per hour if offered qualifying health benefits
$11.25 per hour if not offered qualifying health benefits
More information on Nevada Minimum Wage Increase
Oregon
$15.45 per hour Portland Metro
$14.20 per hour Standard
$13.20 per hour Non-Urban
More Information on Oregon Minimum Wage Increase
Wage Compliance Tips to Consider
- Tipped Employees: Understand how tipped employees’ wages are handled in your jurisdiction. Some, like D.C., require the full standard rate to be paid if the tipped rate plus the hourly rate do not equal or exceed the standard minimum rate. In some states without a tipped rate, employers are not allowed to pay employees who earn tips a tipped minimum wage rate lower than the standard minimum wage rate.
- Employees Subject to Multiple Rates: When an employee is subject to multiple rates (federal, state, local) an employer is generally required to pay them the highest rate.
- Remote/Out of State Workers: If your business is located in one state, but you have employees working in another, the minimum wage rate where that employee performs their work is the one that generally applies.
- Posters: Posters with the most current minimum wage rates are required to be posted by most jurisdictions.
Conclusion
Keeping up with wage and hour laws is a challenging task so you should continually check which rules apply to your employees and locations as rates can change unexpectedly. Commonwealth Payroll & HR can help keep you compliant with these and other compliance related requirements. Contact us today to see how we can help keep you on track!
You may also be interested in our upcoming webinar on Thursday, July 20th at 1pm ET: Employment Law 101 for Non-Lawyers. We’ll examine a few key employment law concepts to help you understand their legal basis and nuances, such as the at-will employment relationship and what constitutes workplace harassment.
We will also discuss the National Labor Relations Act and how seemingly minor payroll oversights can turn into massive wage and hour claims. Register here.
RESOURCE: State and Local Minimum and Tipped Wage Rates As of July 2023
*THIS MATERIAL IS OFFERED FOR GENERAL INFORMATION ONLY. IT DOES NOT PROVIDE, NOR IS IT INTENDED TO PROVIDE TAX OR LEGAL ADVICE.
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