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5 States Announce Their 2013 Minimum Wage Rates

October 2, 2012 | PrimePay Business and Experts Blog | 3 Comments

2013 state minimum wage ratesSo far this year, five states have released their 2013 minimum wage rates.  All five states have announced an increase.  Effective January 1, 2013, the minimum hourly wage rates in Montana, Ohio, Oregon, Rhode Island and Washington will go up.  An increase to the state minimum wage rate in Colorado has also been proposed.

Ten states have laws in place that require the minimum wage rate be adjusted annually to keep pace with inflation and reflect changes in the consumer price index (CPI).  Those states are Arizona, Colorado, Florida, Missouri, Montana, Nevada, Ohio, Oregon, Vermont and Washington.  So far, Montana, Ohio, Oregon and Washington have announced their 2013 minimum wage rates.  Colorado has a 2013 rate proposal pending.

State Minimum Wage Rate Increases for 2013

Colorado
Colorado's Department of Labor and Employment proposed an increase in the minimum wage rate to $7.78 an hour from $7.64 an hour for nontipped employees and to $4.76 an hour from $4.62 an hour for tipped employees, effective January 1, 2013.  A hearing on the rate increase proposal is scheduled for November 1, 2012.

Montana
In Montana, the minimum wage rate is to increase to $7.80 an hour from $7.65 an hour.  Montana law does not allow employers to take a tip credit against minimum wage for tipped employees.

Ohio
The Ohio Department of Commerce has announced that the minimum wage rate in Ohio will increase to $7.85 an hour from $7.70 an hour for nontipped employees and to $3.93 an hour from $3.85 an hour for tipped employees.  This increase is effective January 1, 2013.  The increased rate is to apply to employees of businesses with annual gross receipts of more than $288,000 a year.  A new Ohio 2013 minimum wage poster is now available in English.

Oregon
The Oregon Bureau of Labor and Industries has announced that the state minimum wage rate is to increase to $8.95 an hour from $8.80 an hour, effective January 1, 2013.  Oregon law does not allow employers to take a tip credit against minimum wage for tipped employees.  New labor law compliance posters reflecting the increase are currently available in English and Spanish

Rhode Island
The Rhode Island General Assembly announced earlier this year that the minimum wage rate in Rhode Island will rise to $7.75 per hour, which is an increase of 35 cents over the current rate, effective January 1, 2013.  This is the first minimum wage increase for Rhode Island since 2007.  Rhode Island employers will be required to post a new minimum wage rate poster. 

Washington
The Washington Department of Labor & Industries has announced that the minimum wage rate in Washington will increase 15 cents per hour effective January 1, 2013… going from $9.04 per hour to $9.19 per hour.  Washington law does not allow employers to take a tip credit against minimum wage for tipped employees.  Optional labor law posters reflecting the increase are currently available in English and Spanish.

Washington has the highest minimum wage, followed by Oregon, which recently announced its 2013 minimum wage will rise 1.7 percent, or by 15 cents, to $8.95 per hour.

Keeping Your Labor Law Posters Current

The easiest way to make sure your company is compliant and displaying the most up-to-date labor law notices is to subscribe to a program which offers a combined federal and state poster that automatically sends you updates. That way you don’t have to stay on top of all the government changes and worry about what mandatory changes require a new poster.  It is taken care of for you.  All you have to do is switch out the old poster with the new one.

Failure to display the most up-to-date workplace posters could cost your business significant fines and penalties.  Check to see if your labor law posters are current.

are-your-labor-law-posters-in-compliance

 

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Comments

Thanks for sharing. As far as I know, Arizona also gets the Minimum Wage inicreased from $7.65 per hour to $7.80 an Hour in 2013. Good to hear that!
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Florida's minimum wage will increase to $7.79 per hour and $4.77 for tipped employees as of 1/1/2013
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Unfortunately almost everyone who’s making (or qualifies for) more than minimum wage living in Oregon or Washington (which have the highest minimum wage in the nation) is at a disadvantage because of the minimum wage increase. Also, what some people don’t realize is that the most hard-working, beneficial employees who get minimum wage could also be at a loss since their opportunity for growth in the company and work schedule hours often decreases as a direct result. Also, the workers making more than minimum whose wages does not enjoy the same increase will ultimately be getting a decrease in wage compared to the required minimum (and the higher cost of living they see resulting from it) because their employers are not required to give them an increase in wage as well. I work in Portland, OR and have employees who rightfully deserve a decent salary increase due to their great performance and long lasting dedication. However, they do not get rewarded for their performance like they should because I am not able to offer the same promotions, bonuses, and wage increases anymore which I could have if the lowest genre of wage earners at my work did not keep getting mandatory minimum wage increases. My employers own numerous other small businesses similar to mine in the Portland area and they are all struggling with this dilemma. The top performers' salary stays the same or decreases (especially in comparison), but the new hires and unqualified worker’s wages keep increasing even when they perform badly. In the meanwhile, the salary as well as benefits they/we receive are not able to stay the same, let alone increase anymore like they could have otherwise because of the cost increase that the bottom wage earners amount to each year (many of whom get tips which add up to way more than those who qualify for a higher wage).To make matters worse, the prices my company charges consumers for the services we offer have had to stay the same or decrease year over year in order to stay competitive in the market due to the economy. Larger corporations can (and not always, but sometimes will) still offer a small increase for all of their workers because they can pass the expense on to their consumers or decide to take a cut in profit. Unfortunately we are not able to. We have not been making a profit the last few years, yet have in fact been taking a huge loss in hopes that we will eventually get out of this bad economy and desperate market soon.We want to pay more money and offer better incentives to get or keep skilled and experienced workers/managers who could help our business succeed and grow into being profitable again someday (and help rule out the chance of us going out of business or cutting even more benefits and hours). Unfortunately, the money we would have been able to offer the employees who could have potentially brought our business back on track allowing us to hire more workers and taste a glimpse of possible profit or at least a balanced approach, is not financially possible these days because of the minimum wage increase on top of the multitude of other cost increases we’re forced to accept every year. (And the money we were finally approved to borrow from the banks after so long had to go toward renovations.) I empathize with minimum wage earners wanting an increase in wage, however, and increase in wage for new hires and low level workers (sometimes illegal immigrants or young folks starting out) etc. will amount in a decrease in benefits as well as hours offered, and may not allow them to grow in the company or earn the wage increase deserved if they exceed their job performance expectations the way it would have otherwise. Also, most of the minimum wage earners at my job get tips and the workers who make more than minimum wage do not. Therefore, the minimum wage earners can (and most often) end up making much more than their superiors. In addition, most of them do not include their tips in the income they claim on their tax returns when they’re paid in cash so they can still qualify for the tax deductions and refunds associated with being a low income earner (which is especially beneficial when they have kids). I have become aware that fortunately for our employees who make minimum wage, they all live in a household of atleast 2 or more other adults and receive food stamps and government assistance, etc. along with thousands of dollars in Government tax credits each year for each of their many children since they are low wage earners. The best candidates for us to feel sorry for are not always the minimum wage earners, we should also think about those who are unfortunate enough to make just slightly over the income amount required to qualify for government assistance since those who make slightly less do qualify and pay much less out of pocket for their expenses. Quite a few of our employees make sure to not accept full time work or extra hours when it is offered to them because it could jeopardize the government benefits they receive which well exceeds the pay they give up. It is also not fair that the responsible workers who earn more of an hourly wage due to their contribution to the company end up making way less than the employees under them since they don’t get tips. In Oregon; tipped workers still get the minimum wage which everyone else who doesn’t get tips make… a waiter/waitress in my business's restaurant (which has significantly low menu prices in order to be competitive with the suburban market we’re in) makes an average of $36 an hour when you include the tips with their minimum wage of $8.80 ($8.95 in 2013)… why should they qualify to get their minimum wage increased when they make so much more than that with tips and their supervisor who has better skills and keeps the restaurant afloat only gets $14 an hour or less without any tips at all and is lucky if they even get a 5 cent increase? Where does it end? I have a payroll cap which means there are less people I can hire and less of an hourly wage I can offer to employees who make more than minimum. What once seemed like a good wage to them has decreased in value over the years and has now become a disappointment as the cost of the goods and services they/we buy keep increasing. The prices they pay for goods keep increasing and their salary does not keep up with it so there's less they can spend than they would have otherwise... They say minimum wage earners help local businesses by buying more goods and services, however, it's contradicted by the fact that non-minimum wage earners spend/buy much less than they used to (like myself). I dread telling my best employees they can’t get a wage increase each year like the minimum wage workers do. It’s not because our business is greedy! It’s because we want to stay in business! The wages and benefits we could have offered to those who could have helped get us out of this terrible decline in revenue are now no longer a possibility unless we decide to fire some of the minimum wage earners and eliminate more of whats left of the health and vacation benefits across the board (which have been decreasing significantly year over year as well). The cost of all of our expenses keep rising, as does the minimum wage… but when will the skilled/talented workers who keep private sector small businesses alive ever be thought of to receive the same attention and consideration? I would rather reward our employees with wage increases based on their record of success and contribution to our company’s survival and livelihood… however, I’m forced to reward the new hires, inexperienced, and under-performing with an increase in wage while watching the employee moral, benefits and dedication of our top performers slowly diminish when we need them the most! Would you be happier getting the mandatory increase all of your peers get, or getting more than them based on performance? That could be the determining factor in the success of the company.
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