New York State Increases Exempt Salary Levels & Minimum Wage for 2020

Several states require employers to pay tipped employees the full state minimum wage before tips, whereas others require employers to pay tipped employees a minimum cash wage above the federal minimum amount. Minnesota has different rates in place for different-sized employers, but instead of going by employee count, they measure a business’s size based on its annual sales. For employers with more than $500,000 in gross receipts, the new minimum wage is $10.00 For those with less gross vs net than $500,000, the minimum wage rate is $8.15. There is no separate rate for tipped employees, so they must be paid the same.

How did Amendment 2 change the minimum wage in Florida?

Vermont participates in indexed increases as well, and the minimum wage increased to $10.96 in 2020. Employers are allowed to take a tip credit as long as the tipped employee earns the standard rate. Bookkeeping 101 Massachusetts legislators implemented a plan to raise the minimum wage to $15 by 2023.

California

Plus, when you purchase posters with GovDocs Update Service, you ensure your locations automatically receive updated posters whenever changes occur. The current federal minimum wage, which acts as a floor for minimum wages, has remained unchanged since 2009 when it increased to $7.25 per hour. The businesses can choose not to pay the higher state rate and instead meet the federal minimum wage or may have extra time before they need to increase their workers’ wages. Some states set subminimum rates for minors and/or students or exempt them from coverage, or have a training wage for new hires.

Recent and proposed ballot measures

Employers should take steps to comply with all local and state minimum wage laws by reviewing employee compensation and, when necessary, increasing wages. Failure to comply with local and state minimum wage laws exposes employers to claims for statutory and civil penalties and back wages. If you have any questions about implementing these wage increases, please contact a member of Goodwin’s California Employment team. The minimum wages for employees classified as exempt under the computer professional and licensed physician and surgeon exemptions have also increased. Computer professional employees must be paid a minimum of $46.55 hourly, $8,080.71 monthly, or $96,968.33 annually starting in the new year (increasing from $45.41 hourly, $7,883.62 monthly, and $94,603.25 annually). Employers must pay employees treated as exempt under the licensed physician and surgeon exemption at least $84.79 per hour in 2020, an increase from $82.72 per hour in 2019.

• In 2018, Arkansas  voters passed Issue 5 to increase the state minimum wage, with the 2020 rate going to $10.
• Therefore, if a state or municipality has a minimum wage that is higher than the federal minimum, employers subject to the state or local minimum wage law are obligated to pay the higher rate to employees working there.
• Failure to comply with local and state minimum wage laws exposes employers to claims for statutory and civil penalties and back wages.
• Lastly, we have Washington State, which passed a minimum wage ballot initiative in 2016.
• Such changes matter a lot to workers and employers because they are designed to ease the cost of living and inflation.
• The effect of this multiple coverage by different government sources is that when there are conflicting requirements in the laws, the employer must follow the stricter standard; that is, the one that is the most beneficial to the employee.
• With the federal rate unchanged since 2009, states have taken it upon themselves to increase minimum wage.

Employment Law News: Top 5 Blogs from 2025

• 4 A Montana business not covered by the federal Fair Labor Standards Act whose gross annual sales are $110,000 or less may pay $4.00 per hour.
• The Department will update this notice with additional information as it becomes available.
• Business not covered by the Fair Labor Standards Act with gross annual sales of$110,000 or less.
• If you have any concerns, it’s best to consult an employment lawyer.
• For employers with more than $500,000 in gross receipts, the new minimum wage is $10.00 For those with less than $500,000, the minimum wage rate is $8.15.

Keep in mind that rates in certain cities and counties may surpass the state minimum, and employers need to follow the highest of those three guidelines. A ‘large’ employer has gross annual sales of $500,000 or more. A ‘small’ employer has gross annual sales less than $500,000.

• Please note that posting requirements vary by statute; that is, not all employers are covered by each of the Department’s statutes and thus may not be required to post a specific notice.
• Some states and local jurisdictions schedule their changes for July 1 or at another point during the year.
• The $10 per hour wage is a 21% increase from Illinois’ current $8.25 wage, the highest percentage increase for a state minimum wage planned for 2020.
• While the employer is under no obligation to provide a raise in such cases, some employees may be expecting one.
• An employee who has not been paid the minimum wage can bring a legal claim to recover wages due and possibly related damages and penalties.
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