HOURLY WAGE

2013: A new year, new minimum wages

Last Updated November 28, 2012
When it comes to the minimum wage, federal law generally sets the floor. States, however, may enact laws that provide for a different minimum wage, and for the most part, the wage as defined in state law will be higher than the federal law. When the federal law doesn't change for a while, states often step in and make changes as they see fit.
Often, a new year brings about new state minimum wages. This is true for 2013. The following states are scheduled to have minimum wage increases effective January 1, 2013:

• Arizona: The state minimum wage rate is adjusted annually based upon changes in the consumer price index (CPI). The Arizona state minimum wage rate will increase to $7.80 per hour for non-tipped employees and to $4.80 per hour for tipped employees.
• Colorado: Colorado Minimum Wage Order 29 established a new proposed minimum wage rate increase to $7.78 per hour for non-tipped employees and to $4.76 per hour for tipped employees effective January 1, 2013.
• Florida: The state minimum wage rate is adjusted annually based upon changes in the CPI. The state agency has indicated the minimum wage rate in Florida will increase to $7.79 per hour for non-tipped employees and to $4.77 for tipped employees.
• Missouri: The state minimum wage rate will increase to $7.35 per hour. Tipped employees must be paid half of the state minimum wage rate.
• Montana: The state minimum wage rate is adjusted annually based upon changes in the CPI. The Montana state minimum wage rate will increase to $7.80 per hour.
• Ohio: The state minimum wage rate is adjusted annually based upon changes in the CPI. The minimum wage rate in Ohio will increase to $7.85 per hour for non-tipped employees and to $3.93 per hour for tipped employees.
• Oregon: The state minimum wage rate is adjusted annually based upon changes in the CPI. The minimum wage rate in Oregon will increase to $8.95 per hour.
• Rhode Island: Signed into law June 20, 2012, Rhode Island's HB 7396 will increase the minimum wage to $7.75.
• Vermont: The state minimum wage rate will increase to $8.60 per hour and the service or tipped rate will increase to $4.17 per hour.
• Washington: The state minimum wage rate is adjusted annually based upon changes in the CPI. On September 28, 2012, the Washington Department of Labor & Industries (L&I) announced the state minimum wage rate would increase to $9.19 per hour.

States with minimum wage-related actions pending

• New Jersey: AB 2162 would increase the minimum wage to $8.50 per hour as of July 1, 2012. Beginning in 2013, the minimum wage would be adjusted to reflect increases in the CPI. There has been no legislative action taken on A2162. The bill has been in committee since May 31, 2012.
• New York: AB 9148 would increase the minimum wage to $8.50 per hour as of January 2, 2013. After January 1, 2014, the minimum wage rate would be calculated based on the rate of inflation using the CPI. The measure has been in committee since May 15, 2012.

Ten states (Arizona, Colorado, Florida, Missouri, Montana, Nevada, Ohio, Oregon, Vermont, and Washington) already index their minimum wage to inflation. Whether the number of states or the federal government will continue adding to minimum wages linked to the CPI remains to be seen, but it is an ongoing theme.
Federal measures
On the federal level, bills are often introduced that would raise the national minimum wage, which currently stands at $7.25 per hour. One of the latest measures, the Fair Minimum Wage Act of 2012 (S 3453 and HR 6211), was introduced on July 26, 2012. It would increase the minimum wage, subsequently making increases consistent with inflation. Senate Bill 3453 was referred to the Committee on Health, Education, Labor, and Pensions, while House Bill 6211 was referred to the House Committee on Education and the Workforce on July 26, 2012. They remain there.
Another measure is the Catching Up to 1968 Act of 2012 (HR 5901). This bill would increase the federal minimum wage to $10 per hour and index future increases to those in the CPI. Representative Jesse Jackson Jr., who sponsored the bill, indicated that the minimum wage, in 1968 dollars, would be closer to $11 per hour today.
As with other issues, there are voices for and against such a measure, and the more things change, the more they stay the same. It just pays to be aware of the changes. Getting caught unaware often adds to the coffers of employment lawyers.