Four States and Two Cities Hike Their Minimum Wage Rates
Somewhat overlooked in this week’s election were the minimum wage referenda on the ballots in a number of states. Continuing a growing national trend, voters in Alaska, Arkansas, Nebraska and South Dakota approved proposals to increase their states’ minimum wage rates on Tuesday.
In addition, voters in a fifth state, Illinois, indicated in a non-binding advisory vote that they would favor boosting that state’s minimum wage to $10 per hour. These initiatives follow recent minimum wage increases in Minnesota, West Virginia, Maryland, Hawaii, Vermont, Michigan, Delaware, Rhode Island, Massachusetts, Guam, and the city of Seattle.
The key provisions of these new minimum wage hikes are highlighted below:
In addition, a number of cities also had wage-hike referendums.
Employers with employees earning at or slightly above the current minimum wage in these jurisdictions should begin taking steps to ensure compliance with the increases. Employers also should anticipate a similar increase in related overtime costs, as overtime typically is calculated as at least one and one-half times an employee’s regular hourly rate of pay. Finally, employers in other states that have not recently increased their minimum wage rates should monitor state and local developments as the trend of state and local minimum wage hikes is likely to continue.