States Considering Minimum Wage Rate Changes

States Considering Minimum Wage Rate Changes

Some proposed state legislation would increase minimum wage rates. In a few states, there is legislation that would reduce certain components of the rate.

Arizona.
HCR 2056 would allow employers to pay a teenage worker up to $3 less than the current minimum wage per hour ($7.65 per hour) if the worker is employed either part-time or on a temporary basis. An amendment to the bill would cut the minimum wage rate that employers must pay tipped employees from $4.65 per hour to the current federal cash minimum wage rate of $2.13 per hour. However, if the worker didn't earn at least $7.65 per hour after tips, the employer would have to make up the difference.

Connecticut.
There is a bill currently being considered by the state's Labor and Public Employees Committee that would raise the current $8.25 per hour minimum wage rate to $9 per hour, beginning in July 2012, and to $9.75 per hour on Jan. 1, 2013. The bill requires the minimum wage rate to be tied to inflation beginning in July 2014.

Delaware.
Senate Bill 163 would raise the minimum wage rate from $7.25 per hour to $7.75 per hour, effective Jan. 1, 2013, and to $8.25 per hour, effective Jan. 1, 2014. The legislation was passed by the State Senate on Jan. 26, 2012.

Florida.
Senate Bill 7210 would give employers the option to lower the current cash minimum wage rate for tipped employees from $4.65 per hour to the current federal cash minimum wage rate of $2.13 per hour. However, if the employer opts for the lower wage rate and the employee doesn't earn at least $9.98 per hour after tips, the employer would have to make up the difference.

Hawaii.
Senate Bill 2203 would increase the minimum wage rate from $7.25 per hour to $7.75 per hour on July 1, 2012, and to $8.25 per hour on July 1, 2013. House Bill 1691 would base the Hawaii minimum wage rate on the federal poverty level for a family of two persons in Hawaii, eginning on Jan. 1, 2013.

Illinois.
Senate Bill 1565 would increase the current minimum wage rate of $8.25 per hour by 50¢, plus an additional adjustment equal to the increase in the cost of living during the preceding year. This legislation was introduced over a year ago.

Iowa.
House Bill 2196 would increase the state minimum wage rate from $7.25 per hour to $8.80 per hour on Jan. 1, 2013. Senate Bill 2040 would increase the state minimum wage rate from $7.25 per hour to $8.75 per hour on July 1, 2012, and to $10 per hour on Jan. 1, 2013.

New Jersey.
Assembly Bill 2162 would increase the minimum wage rate from $7.25 per hour to $8.50 per hour on July 1, 2012. The minimum wage rate would be adjusted each year, beginning on July 1, 2013, based on changes to the Consumer Price Index (CPI). The bill is now being considered by the New Jersey Senate.

New York.
Assembly Bill 9148would increase the minimum wage rate from $7.25 per hour to $8.50 per hour.

Rhode Island.
House Bill 7396 would increase the minimum wage rate from $7.40 per hour to $7.75 per hour.

South Dakota.
House Bill 1221 would increase the minimum wage rate from $7.25 per hour to $8.00 per hour, effective Jan. 1, 2013. The minimum wage rate would then be adjusted annually based on changes to the CPI.

Courtesy © 2012 Thomson Reuters/RIA.

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