Global Compliance Desk – United States Minimum Wage
Changes in compliance are continuous and are occurring around the globe. At Replicon, our goal is to make sure you’re never a step behind. The minimum wage rates recently increased in several states and localities. In fact, a total 35 combined states, cities, and counties had mid-year rate increase that went into effect at the start of July 2018. Delaware just passed a minimum wage bill and like Berkeley, CA, and New York, NY, the increase will go into effect in October of this year.
Under the Fair Labor Standards Act (FLSA), the current federal minimum wage is $7.25 per hour, but the FLSA does not supersede state or local minimum wage laws that are more favorable to employees. 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. When a state or local minimum wage is lower than the federal minimum wage, the more favorable rate should be paid to the employee if they are covered under both the FLSA and state/local law.
- Four cities currently have a minimum wage rate of $15.00/hr or more: Mountain View, CA; Seattle, WA; Sunnyvale, CA; San Francisco, CA.
- Berkeley, CA, will be the 5th city to require a minimum of at least $15.00/hr when the city’s wage increase takes effect on October 1, 2018.
- Georgia and Wyoming are the only two states which have a state wage rate less than the federal minimum wage.
- Five states do not have any state law regulating minimum wage: Alabama; Louisiana; Mississippi; South Carolina; and Tennessee.
