May 19, 2022

Volume XII, Number 139

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Ringing in the New Year with Minimum Wage Increases and Revised Exempt Salary Thresholds

Before ringing in the New Year, employers should carefully evaluate whether they need to adjust their current practices to ensure that they remain compliant with state and local laws, including those relating to minimum wage and salary thresholds for exempt employees.

As reflected in the charts below, in 2022, minimum wages will increase in more than two dozen states and localities, with many changes taking effect January 1st.  Accordingly, employers with minimum wage workers should consult with counsel to ensure that their compensation practices are compliant with the laws in all jurisdictions in which they operate. Employers should pay particular attention to the effective date to ensure compliance by the appropriate date.

Lastly, exempt salary thresholds are also increasing in some states.  Employers must consider whether they have classified their employees appropriately and whether their employees are eligible for overtime under the new salary thresholds.

State:

State

2021 Minimum Wage

2022 Minimum Wage

Arizona

$12.15

$12.80

Arkansas

$11.00

TBD

California

$14 per hour for employers with 26 or more employees;

 

 

$13 per hour for employers with 25 or fewer employees

$15 per hour for employers with 26 or more employees;

 

 

$14 per hour for employers with fewer than 25 employees

Colorado

$12.32

$12.56

Connecticut

$13.00, eff. 8/1/2021

$14.00, eff. 7/1/2022

Delaware

$9.25

$10.50

Florida

$8.65, eff. 1/1/2021

 

$10.00, eff. 9/30/2021

$11.00, eff. 9/30/2022

Illinois

$11.00

$12.00

Maine

$12.15

$12.75

Maryland

$11.75 (15+ employees)

 

$11.60 (14 or fewer)

$12.50 (15+ employees)

 

$12.20 (14 or fewer)

Massachusetts

$13.50

$14.25

Michigan

$9.65

$9.87 (unless the state’s unemployment rate for 2021 exceeded 8.5%, in which case the current $9.65 rate will remain in effect for 2022)

Minnesota

$10.08 for large employers;

 

 

$8.21 for small employers

$10.33 for large employers;

 

 

$8.42 for small employers

Missouri

$10.30

$11.15

Montana

$8.75

$9.20

Nevada

$8.75 (for employers offering specified health benefits), eff. 7/1/2021

 

 

$9.75 (for all other employers), eff. 7/1/2021

$9.50 (for employers offering specified health benefits), eff. 7/1/2022

 

 

$10.50 (for all other employers), eff. 7/1/2022

New Jersey

$12.00 for most employers

 

 

$11.10 for small employers (fewer than 6 employees)

$13.00 for most employers

 

 

$11.90 for small employers (fewer than 6 employees)

New Mexico

$10.50

$11.50

New York

$12.50, eff. 12/31/2020

$13.20, eff. 12/31/2021

Ohio

$8.80

$9.30 (for employers with annual gross receipts of $342k per year; otherwise, the federal minimum wage applies)

Oregon

$12.75, eff. 7/1/2021

$13.50, eff. 7/1/2022

Puerto Rico

$7.25

$8.50

Rhode Island

$11.50

$12.25

South Dakota

$9.45

$9.95

Vermont

$11.75

$12.55

Virginia

$9.50, eff. 5/1/2021

$11.00

Washington

$13.69

$14.49

Locality:

City/County

2021 Minimum Wage

2022 Minimum Wage

Flagstaff, AZ

$15.00, or $2 above state minimum wage, whichever is greater

$15.50 or $2 above the state minimum wage, whichever is greater

Belmont, CA

$15.90

$16.20

Berkeley, CA

$16.32, eff. 7/1/2021

$16.32, plus any change to the Consumer Price Index, eff. 7/1/2022

Cupertino, CA

$15.65

$16.40

Daly City, CA

$15.00

$15.53

El Cerrito, CA

$15.61

$16.37

Emeryville, CA

$17.13, eff. 7/1/2021

TBD

Los Altos, CA

$15.65

$16.40

Los Angeles City, CA

$15.00, eff. 7/1/2021

TBD

Los Angeles County, CA

$15.00, eff. 7/1/2021

TBD

Malibu, CA

$15.00, eff. 7/1/2021

No update provided yet, eff. 7/1/2022

Menlo Park, CA

$15.25

$15.75

Milpitas, CA

$15.65, eff. 7/1/2021

No update provided yet, eff. 7/1/2022

Mountain View, CA

$16.30

$17.10

Oakland, CA

$14.36

$15.06

Palo Alto, CA

$15.65

$16.45

Pasadena, CA

$15.00, eff. 7/1/2021

No update provided yet, eff. 7/1/2022

Petaluma, CA

$15.20

$15.85

Redwood City, CA

$15.62

$16.20

Richmond, CA

$15.21

$15.54

San Diego, CA

$14.00

$15.00

San Francisco, CA

$16.32, eff. 7/1/2021

No update provided yet, eff. 7/1/2022

San Jose, CA

$15.45

$16.20

San Mateo, CA

$15.62

$16.20

Santa Clara, CA

$15.65

$16.40

Santa Monica, CA

$15.00, eff. 7/1/2021

No update provided yet, eff. 7/1/2022*

 

*Updates will be posted near 5/15/2022)

Sonoma City, CA

$15.00 (26+ employees)

 

$14.00 (25 or fewer)

$16.00 (26+ employees)

 

$15.00 (25 or fewer)

Sunnyvale, CA

$16.30

$17.10

Denver, CO

$14.77

$15.87

Chicago, IL

$15.00 (for employers of 21+), eff. 7/1/2021

 

 

$14.00 (for employers 4 to 20 ), eff. 7/1/2021

TBD (for employers of 21+), eff. 7/1/2022

 

 

$14.50 (for employers 4 to 20), eff. 7/1/2022

Cook County, IL

$13.00, eff. 7/1/2021

TBD.

Howard County, MD

$11.75

$14.00, eff. 4/1/2022

 

 

$12.50, small employers, eff. 4/1/2022

Montgomery County, MD

$15.00 (51+ employees), eff. 7/1/2021

 

 

$14.00 (11-50 employees), eff. 7/1/2021

$13.50 (10 or fewer), eff. 7/1/2021

$15.00 (51+ employees), eff. 7/1/2022 (awaiting to see if this changes)

 

 

$14.50 (11-50 employees), eff. 7/1/2022

 

$14.00 (10 or fewer), eff. 7/1/2022

Prince George’s County, MD

State minimum wage applies.

State minimum wage applies.

Minneapolis, MN

$14.25 (100+ employees), eff. 7/1/2021

 

 

$12.50 (fewer than 100), eff. 7/1/2021

$15.00 (100+ employees), eff. 7/1/2022

 

 

$13.50 (fewer than 100), eff. 7/1/2022

St. Paul, MN

$12.50 for macro businesses (more than 10,000 employees), eff. 7/1/2021

 

 

$12.50 (101 to 10,000 employees), eff. 7/1/2021

$11.00 (6 to 100 employees), eff. 7/1/2021

$10.00 (5 or fewer), eff. 7/1/2021

$15.00 for macro businesses (more than 10,000 employees), eff. 7/1/2022

 

 

$13.50 (101 to 10,000 employees), eff. 7/1/2022

$12.00 (6 to 100 employees), eff. 7/1/2022

$10.75 (5 or fewer), eff. 7/1/2022

Santa Fe, NM

$12.32, eff. 3/1/2021

No update provided yet

New York City, NY

$15.00

$15.00

Nassau, Suffolk, Westchester, NY

$14.00 (increasing to$15.00 by Dec. 31, 2021)

$15.00, eff. 12/31/2021

Portland, OR

$14.00, eff. 7/1/2021

$14.75, eff. 7/1/2022

Nonurban Counties, OR

$12.00, eff. 7/1/2021

$12.50, eff. 7/1/2022

Seattle, WA

$16.69 (more than 501 employees);

 

 

$15.00 per hour if 500 or fewer employees, plus tips and/or benefits paid by employer), otherwise above rate

$17.27 (more than 501 employees);

 

 

$15.75 per hour if 500 or fewer employees, plus tips and/or benefits paid by employer, otherwise above rate

Salary Thresholds for Overtime:

STATE

SALARY THRESHOLD

California

$62,400 for employers with 26 or more employees;

 

$58,240 for employers with 25 or less employees

Colorado

(1) $45,000 ($865.38/week) an exempt executive, administrative, or professional employee;

 

 

(2) $101,250 for those who meet the duties-requirements for HCE employees. See new exemption threshold.

Maine

Over $38,250 per year ($735.59/week)

New York

$58,500 ($1,125/week) for employers in New York City

 

 

$58,500 ($1,125/week) for employers in Nassau, Suffolk, and Westchester counties

 

$51,480 ($990/week) for employers in the rest of the state

Washington

$52,743.60 ($1,104.30/week)

 

 

$50.72/hour (Computer Professionals)

 

55 hours per week (Agricultural Workers)

 

Kamil Gajda, a Law Clerk in the firm’s New York office, contributed to the preparation of this post.

©2022 Epstein Becker & Green, P.C. All rights reserved.National Law Review, Volume XI, Number 354
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About this Author

Michael S. Kun, epstein becker green, los angeles, labor, employment
Member

Mr. Kun's practice includes:

  • Litigating more than six dozen class actions and collective actions in California, New York, Georgia and Maryland involving a variety of employment issues, including discrimination and wage-hour claims, and successfully defeating motions for class certification on such claims. The sizes of the putative classes have ranged from 75 to approximately 15,000 employees.

  • Litigating a wide variety of employment-related claims, including discrimination, harassment,...

310-557-9501
Paul DeCamp, Epstein Becker Green, Labor & Employment Attorney
Member

PAUL DeCAMP is a Member of the Firm in the Employment, Labor & Workforce Management practice, in the Washington, DC, office of Epstein Becker Green. He is Co-Chair of the firm’s national Wage and Hour practice group. A former Administrator of the U.S. Department of Labor’s (DOL’s) Wage and Hour Division, Mr. DeCamp has more than two decades of experience representing employers and trade associations in the most complex and challenging wage and hour litigations, government investigations, and counseling matters.

Additionally, Mr. DeCamp has...

202-861-1819
Kevin Sullivan, Epstein Becker Green, labor, employment lawyer
Associate

KEVIN SULLIVAN is an Associate in the Labor and Employment practice, in the Los Angeles office of Epstein Becker Green. Mr. Sullivan focuses his practice on employment law; litigating all forms of employment law cases, with a concentration on wage and hour class and collective actions; and client counseling.

310-557-9576
Law Clerk - Admission Pending

Kamil Gajda is a Law Clerk – Admission Pending – in the Employment, Labor & Workforce Management practice, in the New York office of Epstein Becker Green.

212-351-4524
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