Although the federal minimum wage will remain at $7.25 per hour in 2014, many states have announced that their minimum wage will increase next year.  If a state or municipality’s minimum wage rate is higher than the federal minimum wage rate, then the higher rate must be paid.  Below are the new minimum hourly wage rates effective January 1, 2014, unless otherwise noted:

Arizona – Regular minimum wage will increase from $7.80 to $7.90 per hour.  Minimum wage for tipped employees will increase from $4.80 to $4.90 per hour. 

California – Minimum wage will increase on July 1, 2014 from $8.00 to $9.00 per hour.

• San Francisco – Minimum wage will increase from $10.55 to $10.74 per hour.

Connecticut – Minimum wage will increase from $8.25 to $8.70 per hour. 

Florida – Regular minimum wage will increase from $7.79 to $7.93 per hour.  Minimum wage for tipped employees will increase from $4.77 to $4.91 per hour.

Missouri – Minimum wage will increase from $7.35 to $7.50 per hour.

Montana – Minimum wage will increase from $7.80 to $7.90.

New Jersey – Minimum wage will increase from $7.25 to $8.25 per hour.

New Mexico – 

• Albuquerque – Regular minimum wage will increase from $8.50 to $8.60 per hour.  Employees that have employer-provided healthcare and/or childcare benefits and the employer pays $2,500 or more per year for those benefits will see their minimum wage increase from $7.50 to $7.60.  Minimum wage for tipped employees will increase from $3.83 to $5.16 per hour.

New York – Minimum wage will increase from $7.25 to $8.00 per hour on December 31, 2013.

Ohio – Regular minimum wage will increase from $7.85 to $7.95 per hour.  Minimum wage for tipped employees will increase from $3.93 to $3.98 per hour. 

Oregon – Minimum wage will increase from $8.95 to $9.10 per hour.

Rhode Island – Regular minimum wage will increase from $7.75 to $8.00 per hour.  For tipped employees, the minimum cash wage an employee must be paid remains at $2.89 per hour.  However, Rhode Island permits employers to apply a tip credit towards its tipped employees to satisfy minimum wage rate requirements.  The tip credit an employer may apply to tipped employees will increase from $4.86 to $5.11 per hour.

Vermont – Regular minimum wage will increase from $8.60 to $8.73 per hour.  For tipped employees, the minimum cash wage will increase from $4.17 to $4.23 per hour.  Additionally, Vermont permits employers to apply a tip credit towards its tipped employees to satisfy minimum wage rate requirements.  The tip credit an employer may apply to tipped employees will increase from $4.43 to $4.50 per hour.

Washington – Minimum wage will increase from $9.19 to $9.32 per hour. 

• SeaTac– Minimum wage for hospitality and transportation workers will increase to $15.00 per hour if the current ballot measure passes.

States Proposing an Increase in the Minimum Wage

Colorado – The state’s Department of Labor and Employment has proposed a minimum wage increase from $7.78 to $8.00 per hour.  It also proposed an increase for tipped employees to $4.98 per hour.

To learn more about how minimum compensation rates or other new employment laws may affect your company, or if you have any questions regarding these issues, please contact your labor and employment counsel at Smith, Gambrell & Russell, LLP.