Multistate Employment Laws and Regulations, Wages-Hours, Labor Relations, October Update

Arizona Minimum Wage

The minimum wage in Arizona will increase to $7.25 per hour effective January 1, 2009. Arizona law provides that the minimum wage is to increase each January 1 based upon increases in the cost of living, with the amount of the minimum wage increase rounded to the nearest multiple of five cents. Based upon the Department of Labor's Consumer Price Index (CPI) for All Urban Consumers for August 2007, the unadjusted 12-month CPI rate ending in August 2008 for "all items" category increased by 5.4%. Using this figure as the adjusting factor, the 2008 minimum wage of $6.90 per hour will increase by 37.26 cents to $7.2726. Given the initiative requirement that all increases must be rounded to the nearest five cents, the new minimum wage effective January 1, 2009, will be $7.25 per hour. Source: The Industrial Commission of Arizona Press Release, September 24, 2008; Section 23-363. AZ ¶3-41,000 and ¶3-41,001a.

California Maximum Hours and Overtime

Overtime exemption requirements for employees in the computer software field are amended to add an annual salary limit. Existing law exempts professional employees in the computer software field from overtime compensation requirements if the employee is primarily engaged in work that is intellectual or creative, the employee's hourly rate of pay is not less than $36, and the employee meets other requirements under the law. This law is amended to provide that the overtime exemption for employees in the computer software field applies if the employee is paid at an hourly rate of not less than $36 and, if the employee is paid on a salaried basis, the employee earns an annual salary of not less than $75,000 for full-time employment, which is paid at least once a month and in a monthly amount of not less than $6,250. California Labor Code Section 515.5, as last amended by Ch. 753 (A.B. 10), L. 2008, effective September 30, 2008. CA ¶5-44,007a.

California Military Leave

New law is enacted authorizing the governor and each state agency and department to appoint a mediator to take complaints and to resolve and coordinate the resolution of those complaints and other issues relating to military leave and reemployment rights from state employees who are members of the California National Guard or of a reserve component of the United States Armed Forces. California Military and Veterans Code Sec. 395.6, added by Ch. 642 (A.B. 2641), L. 2008, enacted September 30, 2008, and effective January 1, 2009. CA ¶5-58,016b.

Colorado Minimum Wage

The minimum wage rate in the state of Colorado will increase to $7.28 per hour effective January 1, 2009. For tipped employees, the minimum wage will increase to $4.26 per hour (No more than $3.02 can be used to offset the minimum wage; $7.28 minus $3.02 equals $4.26). In accordance with the Colorado Constitution, the state minimum wage is to be adjusted annually for inflation, based on the Consumer Price Index used for Colorado. The inflation adjustment is based on the Consumer Price Index for All Urban Consumers (CPI-U), All Items, for the Denver-Boulder-Greely combined metropolitan statistical area as published by the United States Bureau of Labor Statistics (BLS). The CPI-U increased 3.7 percent from the first half of 2007 to the first half of 2008, which results in the new minimum wage of $7.28 per hour effective January 1, 2009. Source: Colorado Department of Labor and Employment, Division of Labor, Colorado Minimum Wage Fact Sheet, September 2008; Colorado Constitution Section 15. CO ¶6-41,000 and ¶6-41,001.

Maine Minimum Wage

Reminder: The state minimum wage is $7.25 per hour as of October 1, 2008. Title 26, Section 664 as last amended by Public Law Ch. 640 (S. 604; L.D. 1697), L. 2008, effective July 18, 2008. ME ¶20-41,004.

Missouri Minimum Wage

The state minimum wage will increase by 40 cents to $7.05 per hour on January 1, 2009. The Director of the Missouri Department of Labor and Industrial Relations (DOLIR) is required, on September 30 of each year, to make any required adjustments to the minimum wage earnings based on changes in the Consumer Price Index (CPI). This requires measuring the increase or decrease in the cost of living percentage increase or decrease as of the preceding July over the level as of July of the immediate preceding year of the CPI for Urban Wage Earners and Clerical Workers (CPI-W) as published by the U.S. Department of Labor (USDOL) with the amount of the minimum wage increase or decrease rounded to the nearest 5 cents. The 40 cent rate change for 2009 is based on a 6.0 percent change in the CPI between July 2007 and July 2008. The minimum wage law applies to all businesses/employees that are not specifically exempted. Source: Missouri Department of Labor and Industrial Relations Labor News Release, October 3, 2008; Section 290.502. MO ¶26-41,000 and ¶26-41,002.

Montana Minimum Wage

The Montana minimum wage will increase by 35 cents to $6.90 per hour effective January 1, 2009. Pursuant to Montana Code Annotated Section 39-3-409, an adjustment is to be made to the state minimum wage, to be calculated no later than September 30 of each year based upon any increase in the U.S. City Average Consumer Price Index for All Urban Consumers for All Items (“CPI”) from August of the preceding year to August of the year in which the calculation is made. This amount is to be rounded to the nearest 5 cents. The increase for 2009 is based on an increase in the CPI of 5.4% from August 2007 to August 2008. Effective July 24, 2009, the state minimum wage will increase again to $7.25 per hour, along with the federal minimum hourly wage increase (Montana Code Section 39-3-409, as amended by Initiative 151 (Voter approved, November 2006 General Election), effective January 1, 2007, provides that the minimum wage is to be the greater of the federal or current state minimum wage). Businesses grossing $110,000 per year or less must pay a minimum wage of $4.00 to employees. Source: Montana Department of Labor and Industry, Commissioner's Office Press Release, October 1, 2009; Section 39-3-409. MT ¶27-41,000 and ¶27-41,009.

Ohio Minimum Wage

The minimum wage in Ohio will increase to $7.30 per hour effective January 1, 2009. For employees who receive tips, the minimum wage will be $3.65 per hour, plus tips. For employees of small employers (employers who gross $267,000 or less) and for employees ages 14 and 15, the federal minimum wage applies ($6.55 per hour until July 24, 2008; $7.25 per hour effective July 24, 2009). Source: Ohio Department of Commerce News Release, October 2, 2008; Ohio Constitution, Section 34a. OH ¶36-41,000 and ¶36-41,001.

Oregon Minimum Wage

The minimum wage in Oregon will increase by 45 cents, from $7.95 to $8.40 per hour, effective January 1, 2009. As a result of Ballot Measure 25, passed by voters in 2002 (ORS 653.025(2), as amended), Oregon's minimum wage is adjusted annually based on changes in inflation as measured by the Consumer Price Index (CPI). The Commissioner of the Bureau of Labor and Industries (BOLI) is charged with adjusting the minimum wage for inflation every September, rounded to the nearest five cents. Based on an increase in the CPI of 5.37% from August 2007 to August 2008, the calculation used for determining the minimum wage rate for 2009 is: $7.95 X .0537 = $.4269, rounded to $0.45. Source: Oregon Bureau of Labor and Industries Press Release, September 16, 2008; Section 653.025. OR ¶38-41,000 and ¶38-41,005.

Oregon Prevailing Wage Rates on Public Works

Procedural rules of the Oregon Bureau of Labor and Industries relating to payment of prevailing wage rates on public works projects are amended to update a rule relating to publication of prevailing wage rates as determined by the Commissioner of the Bureau of Labor and Industries for the period beginning July 1, 2008. OAR 839-025-0700, is amended by Administrative Order No. BLI 28-2008, filed and certified effective September 3, 2008. OR ¶38-50,545.

Vermont Minimum Wage

The minimum wage in Vermont will increase from $7.68 per hour to $8.06 per hour effective January 1, 2009. In 2005, the General Assembly approved an annual cost of living increase in the minimum wage law. Vermont's minimum wage increases at the same rate as the August Consumer Price Index (CPI) each year or five percent, whichever is smaller. The CPI increase for the period from September 1, 2007, to August 31, 2008, was 5.4%. The increase to the minimum wage was therefore set at 5%. The basic wage for tipped employees will also increase from $3.72 to $3.91 per hour. Service or tipped employees are individuals working in places who customarily and regularly receive more than $120 a month in tips for direct and personal service. Tipped employees', like other workers, total earnings during a pay period must equal or exceed $8.06 per hour. If a combination of tips and the basic wage do not meet that requirement, the employer makes up the difference. Source: State of Vermont, Office of the Governor, Press Release, September 25, 2008; Section 384. VT ¶47-41,000 and ¶47-41,004.

Washington Minimum Wage

The minimum wage in Washington will increase from $8.07 per hour to 8.55 per hour effective January 1, 2009. The Department of Labor and Industries recalculates the state minimum wage each year in September as required by Initiative 688, which was approved by Washington voters in 1998. The law requires that the state minimum wage be adjusted each year according to the change in the federal Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during the 12 months ending each August 31. The CPI-W is a national index covering the cost of goods and services needed for day-to-day living. It increased 5.9 percent during the 12-month period ending in August, generating a 48-cent increase in the minimum wage rate for 2009. Washington's minimum wage applies to workers in both agricultural and non-agricultural jobs, although 14- and 15-year-olds may be paid 85 percent of the adult minimum wage, or $7.27 per hour. Source: Washington State Department of Labor and Industries News Release, September 30, 2008; Section 49.46.020. WA ¶50-41,000 and ¶50-41,003.

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Multistate Employment Laws and Regulations, Wages-Hours, Labor Relations, October Update Arizona Minimum Wage The minimum wage in Arizona will increase to $7.25 per hour effective January 1, 2009. Arizona law provides that the minimum wage is to increase each January 1 based upon increases in the cost of livin