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Minimum-Wage Increases Now in Effect in Several States, Local Jurisdictions

Minimum-wage rate increases were scheduled to go into effect yesterday in several state and local jurisdictions. Impacted states include Illinois, Nevada and parts of Oregon, while major cities include Chicago, Los Angeles, Minneapolis, San Francisco and Washington, D.C. Several smaller cities have also scheduled rate hikes. Higher minimum-wage mandates at the local level typically supersede state and federal requirements, according to Automatic Data Processing Inc. (ADP), a U.S. provider of human-resources management software and services.

As of June 8, some jurisdictions, including Hayward and San Carlos, Calif., chose to delay minimum-wage increases due to the coronavirus pandemic. Since other local governments could follow suit, self-storage employers should closely monitor the status of minimum-wage changes in their jurisdiction, ADP officials said.

Scheduled July 1 minimum-wage hourly rates include:

States

  • Illinois, $10
  • Nevada, $8 if health benefits are offered ($9 if no health benefits)
  • Oregon, $11.50, $12 or $13.25 depending on region

Major Cities

  • Chicago, $13.50 or $14 depending on employer size
  • Los Angeles, $14.25 or $15 depending on employer size
  • Minneapolis, $11.75 or $13.25 depending on employer size
  • San Francisco, $16.07
  • Washington, D.C., $15

The federal minimum wage for nonexempt employees is $7.25 per hour. In cases where an employee is subject to both the state and federal minimum-wage laws, the employee is entitled to the higher of the two, according to the U.S. Department of Labor, which offers a clickable map on its website to display the minimum-wage laws for each state.

An increase in minimum wage doesn’t mean employers are required to also increase the hourly rate of employees who are already earning a wage equal to or higher than the new rate. “While the employer is under no obligation to provide a raise in such cases, some employees may be expecting one,” ADP officials said. “Consider the potential impact on labor costs, employee morale, internal equity (how employees are paid when compared with other employees within your company based on skills and experience), and your typical merit increase schedule.”

Sources:
ADP, New Minimum Wage Rates July 1: What You Need to Know
U.S. Department of Labor, Minimum Wage

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