KNOWLEDGE|
(1) |
Overall Trends and Adjustment Basis
The federal minimum wage remains unchanged at $7.25 per hour, with no adjustment since 2009. Meanwhile, most states continue to adjust their minimum wage standards based on inflation (CPI).
|
|
(2) |
Concurrent State and Local Regulations
Coastal states like California, New York, Washington, and Massachusetts have minimum wages at or exceeding $15 per hour. More states (e.g., Colorado, Connecticut) also plan to fully implement a $15 standard after 2025.
|
|
(3) |
Gradual Improvement of Paid Leave Systems
An increasing number of states are promoting Paid Family and Medical Leave (PFML) legislation. It is estimated that 15 states and the District of Columbia have officially implemented such programs to date.
|
|
(1) |
Key States with Notable Increases:
Washington: The City of Seattle will become the highest-paying jurisdiction in the nation. Effective January 1, 2025, all employers within the city must pay a minimum wage of US$20.76 per hour. Simultaneously, the mechanism previously allowing small businesses to credit tips or employer-provided medical benefits towards their minimum wage obligation will be eliminated.
California: Effective January 1, 2025, the statewide minimum wage will be uniformly adjusted to $16.50 per hour. However, cities like West Hollywood and San Jose have local, higher standards that employers must note.
New York: The tiered wage system continues. Starting in 2025, the wage increases to $16.50 in New York City, Long Island, and Westchester County, and adjusts to $15.50 in other parts of the state.
|
|||||||||||||||||||||
|
(2) |
Action Steps for Employers (a) Confirm Employee Work Locations Conduct a comprehensive review of employees' actual work locations, including remote workers. Local ordinances in cities like Denver and Tucson often set standards higher than state levels. (b) Update Payroll Systems Proactively Ensure the latest regional data is entered into payroll systems before new wage rates take effect to guarantee accurate salary payments. (c) Notify Employees Legally According to various state regulations, employers must inform affected employees of wage adjustments in writing. |
|
(1) |
New Types of Leave (a) Paid Sick & Safe Leave
Accrual Rate: 1 hour of PSL for every 30 hours worked It is important to note that some cities, such as San Francisco and Seattle, have established separate, more generous paid sick leave requirements than their state standards. (b) Bereavement Leave A growing number of states, including Illinois and Oregon, now mandate that employers provide a certain amount of unpaid leave following the death of a family member. (c) Paid Family and Medical Leave (PFML)
|
|
|
|
(2) |
Key State Policy Analysis (a) Colorado's FAMLI The Family and Medical Leave Insurance (FAMLI) program is fully operational, with benefits having become available in 2024. Employers must continue making payroll deductions and complying with notice requirements. (b) Minnesota's New Law
|
|
(1) |
Payroll Implications
When employees use paid sick leave or receive state leave benefits, payments must be calculated based on the latest wage rates. Calculating the "regular rate of pay" for nonexempt employees can be particularly complex.
|
|
(2) |
Overtime Costs
The increased minimum wage becomes the new baseline for calculating overtime pay (1.5 times the regular rate), directly raising business costs for overtime hours.
|
|
(3) |
Record Keeping
Equip managers to recognize leave requests, understand the interactive process, and strictly avoid any retaliatory actions against employees using their protected leave.
|
|
Disclaimer All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage. |
Language
close
