Ready for July 1st Minimum Wage Increases? Info to Keep Your Payroll Management in Compliance

Are you prepared for the state and local minimum wage rate increases across the country on July 1^st?  That’s this Wednesday!  Are you also aware that some smaller jurisdictions have delayed their scheduled minimum wage increase because of the pandemic (and others are contemplating the same)?  Read our listings below so you can notify your payroll management today and be ready to stay in compliance!   First, we’ll list out the states where the minimum wage has increased as a blanket rule.  Then we’ll list out the states and counties where the rules vary.

Before we get to this list, don’t forget to consider these items:

• Posting Requirements: It’s not enough to notify your payroll management of increased wages.  Depending on your jurisdiction, state, and city, you’re likely required to have posters about the most recent minimum wage notice in your workplace.  Posters for any Federal updates can be found here. Check with your respective state’s Department of Labor or HR consultant for state-level updates.
• Tipped Employees: HR consulting companies like MP would always urge you to remember that a tipped employee’s minimum wage may rise as the general minimum wage does.  If your employee’s direct cash wage plus their tips don’t meet the minimum wage, you’ll be responsible for making up the difference. Check out your local laws or reach out to your HR solutions company for further guidance.
• Multiple minimum wage rates:  If your company falls under a few minimum wage requirements that might conflict (like state, local or federal ones) then your best bet is to follow the most generous one for the employee.  If your employee works in one location and your company is in another, pay the employee by the minimum wage rate in the location they perform most of their work in.   
• Should your non-minimum wage employees also get a raise?  While this isn’t governed by law, you may want to consider it.  When some employees receive a raise in pay, but others don’t, this can significantly impact morale.  Or, perhaps the internal equity of everyone’s pay might be thrown off by these changes.  It’s just good HR strategy to think about whether the company will benefit if everyone gets an increase in pay on July 1.
• Check in with your HR services or legal experts: These rules can be complicated, so take this information as guidance.  There may be special additional regulations that apply to your location, industry, or type of employees!

Notify Your Payroll Management if You’re in One of These States with Changing Minimum Wages

Companies in these states should notify their payroll companies of relevant changes.   These are the new minimum wages effective July 1, 2020.

Chicago	$13.50 or $14.00/hour, depending on the employer size
Cook County, IL	$13.00/hour unless the employee works in a municipality that has opted out of the requirement
District of Columbia	$15.00/hour
Illinois	$10.00/hour
Los Angeles	$14.25 or $15.00 / hour, depending on employer size
Minneapolis	$11.75 or $13.25/hour, depending on employer size
Montgomery County, MD	$13.00, $13.25, or $14.00/hour, depending on the employer size
Nevada	$9.00/hour (if no health benefits are offered), $8.00/hour (if health benefits are offered)
Saint Paul, MN	$9.25 (see below), $10.00, $11.50, or $12.50/ hour, depending on the employer size
San Francisco	$16.07/ hour

Oregon’s Minimum Wage Changes

Changes to Oregon’s minimum wage will depend on what county your company is in.   

• For companies in the Portland metro area: Update your payroll system so that non-exempt employees are now paid $13.25 per hour as of July 1.  (Check here if you’re unsure if you’re located in this area.)

• For companies in non-urban Counties: Employers in Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler must pay non-exempt employees at least $11.50 per hour starting July 1.

• Otherwise: If your company is not located in one of the counties listed above, and it’s not located in the metropolitan Portland urban growth boundary, then notify your payroll services that you’ll be paying non-exempt employees at least $12.00 per hour as of July

St. Paul, Minnesota’s Minimum Wage Change

As of July 1, employers within St. Paul that have 5 or less employees will now need to pay at least $9.25 per hour.  However, if companies have an annual gross revenue of $500,000 or more, the minimum wage is increased to $10 per hour. You should notify your payroll management company if this applies to you.

Minimum Wage Increases: Smaller Cities

As of July 1, some smaller cities will also be increasing their minimum wages.  Notify your payroll company of these changes if you live in any of the cities below:

Alameda, CA	$15.00/ hour
Berkeley, CA	$16.07/ hour
Emeryville, CA	$16.84/ hour
Fremont, CA	$13.50 or $15.00/ hour, depending on employer size
Pasadena, Santa Monica, and Malibu, CA	$14.25 or $15.00/ hour, depending on employer size
Milpitas, CA	$15.40 per hour
Novato, CA	$13.00, $14.00, or $15.00/hour, depending on employer size
San Leandro, CA	$15.00/ hour
Santa Rosa, CA	$14.00 or $15.00/ hour, depending on employer size

Now that you’re up to date with wage increases, do you need more info on PPP updates?  Check out our latest blog post!