Wage and hour questions should be simple, but every comp manager knows they’re not. What to do … especially when you have to depend on low-level supervisors to manage things? First, let’s finish explaining the minimum wage change, then talk about how to keep comp in compliance.
In yesterday’s Advisor, we covered states affected by the change in the minimum wage that takes effect on Thursday, July 24. Today, we present the states in which the increase in the federal minimum wage will generally have no effect because they already have minimum wages at or above the new federal minimum of $6.55 per hour:
- Alaska (the state minimum wage is $7.15)
- Arizona (state minimum wage is $6.90, indexed to inflation)
- California (state minimum wage is $8.00)
- Colorado (state minimum wage is $7.02, indexed to inflation)
- Connecticut (state minimum wage is $7.65)
- Delaware (state minimum wage is $7.15)
- Florida (state minimum wage is $6.79, indexed to inflation)
- Hawaii (state minimum wage is $7.25)
- Illinois (state minimum wage increased to $7.75 on July 1)
- Iowa (state minimum wage is $7.25)
- Kentucky (state minimum wage increased to $6.55 on July 1)
- Maine (state minimum wage is $7.00)
- Massachusetts (state minimum wage is $8.00)
- Michigan (state minimum wage increased to $7.40 on July 1)
- Missouri (the state minimum wage is $6.65, indexed to inflation)
- New Jersey (the state minimum wage is $7.15)
- New York (state minimum wage is $7.15)
- Ohio (the state minimum wage is $7.00, indexed to inflation)
- Oregon (the state minimum wage is $7.95, indexed to inflation)
- Pennsylvania (the state minimum wage is $7.15)
- Rhode Island (the state minimum wage is $7.40)
- Vermont (the state minimum wage is $7.68, indexed to inflation)
- Washington (the state minimum wage is $8.07, indexed to inflation)
- West Virginia (The state minimum wage rose to $7.25 on July 1. Note: Many employers in West Virginia are exempt from state law and can pay the lower federal minimum wage.)
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Of course, minimum wage changes are just the tip of the iceberg for wage and hour. You are also dealing with exemptions, independent contractors, unpaid time, overtime, donning and doffing time, bonuses, and a host of other prickly issues. And in all of it are questions such as these: How independent are the contractors who work for you? How “exempt” are your low level exempts? And how about volunteers—are they really employees? To put it bluntly, how many FLSA violations exist at your workplace?
Bottom Line: Audit Before THEY Do
“They,” in this case, might be the feds, lawyers, or even bankers deciding you don’t get that needed loan because improperly classified workers represent a huge potential liability.
In fact, experts say that it’s always better to do your own audit and fix what needs fixing before authorities order you to do so. Most employers agree, but they get bogged down in how to start, and in the end, they do nothing. There are, however, aids to making FLSA self-auditing relatively easy.
One that our editors strongly recommend is BLR’s FLSA Wage & Hour Self-Audit Guide. It is both effective and easy to use and even won a publishing award in that regard. Here’s what customers like about it:
- Plain English. Drawing on 30 years of experience, our editors have translated the FLSA’s endless legalese into understandable terms.
- Step-by-Step Checklists. The book opens with a clear narrative of what FLSA is all about. That’s followed by a series of checklists that utilize a simple question-answer pattern about employee duties to find the appropriate classification.
All the checklists you need to avoid exempt/nonexempt classification and overtime payment errors. They’re in BLR’s award-winning FLSA Wage & Hour Self-Audit Guide. Try it for 30 days. Click here
- Complete. Many self-audit programs focus on determining exempt/nonexempt status. BLR’s also adds checklists on your policies and procedures, and includes questioning such practices as whether your break time and travel time are properly accounted for. Nothing falls through the cracks because the cracks are covered.
- Convenient. Our personal favorite feature: A list of common job titles marked “E” or “NE” for exempt/nonexempt status. It’s a huge work-saver.
- Up to Date. If you are using an old self-auditing program, you could be in for trouble. Substantial revisions in the FLSA went into effect in 2004. Anything written before that date is hopelessly—and expensively—obsolete. BLR’s FLSA Wage & Hour Self-Audit Guide includes all the changes.
You can examine the BLR FLSA Wage & Hour Self-Audit Guide for up to 30 days at no cost or obligation. Click here and we’ll be glad to arrange it.