Over the past three decades, California voters have reliably approved proposals to increase the statewide minimum wage. Until now.
In November, by a slim margin of 50.7% to 49.3%, voters surprised many by rejecting Proposition 32, which would have increased minimum wages for most non-exempt employees in the state.
Under Proposition 32, the hourly minimum wage for non-exempt employees working for employers with 26 or more employees would have immediately increased from $16 to $17 for the remainder of 2024, with an additional increase to $18 per hour on January 1, 2025. Those working for employers with 25 or fewer employees would have seen an increase the hourly minimum wage from $16 to $17 on January 1, 2025.
The rejection of Proposition 32 in a state that has historically supported minimum wage increases could signal a shift in the labor landscape. It may reflect concerns about rising costs and fears that families and businesses are being priced out of the Golden State. And the vote could be a bellwether for the nation as California is well known as a trendsetting state, especially on wage-and-hour issues.
On Election Day 2024, voters in six states weighed in on ballot initiatives that addressed several employment law topics. Among these were propositions to change state minimum wages and mandate paid sick leave for workers. The outcomes were mixed.
Alaska
In Alaska, voters passed by a narrow margin Ballot Measure 1, which will increase the state’s minimum wage from the current rate of $11.73 per hour to $13.00 per hour on July 1, 2025. It will subsequently rise to $14.00 per hour on July 1, 2026, and $15.00 per hour on July 1, 2027. Increases thereafter will be calculated based on inflation.
Ballot Measure 1 included other provisions affecting workplaces. Its passage means that many employers will need to comply with new paid sick leave requirements. Starting July 1, 2025, eligible employees will accrue a minimum of one hour of paid sick leave for every 30 hours worked and will be allowed to use at least 40 and up to 56 hours of accrued paid sick leave annually, depending on how many employees work for their employer.
A third portion of Ballot Measure 1, also effective July 1, 2025, prohibits so-called “captive audience” meetings. The new law will prohibit employers from retaliating against employees who refuse to attend company meetings about political or religious topics.
We seem to say this every year -- December always seems to go by far too fast. And with holidays and vacations, not to mention many employees still working remotely, it’s not unusual for matters to be put off until the new year — or for a project or two to fall through the cracks.
December is not the shortest month of the year, but it always seems to go by the fastest.
And with holidays and vacations, not to mention employees working remotely, it’s not unusual for matters to be put off until the new year -- or for a project or two to fall through the cracks.
Often times, there are no real consequences if a project gets pushed off into the new year.
But that’s not the case with new state or local wage-hour laws.
As reflected in the charts below, minimum wages increased in dozens of states and localities when the new year rang in on January 1, 2022 – and exempt salary thresholds also increased in some states effective January 1, 2022.
Before ringing in the New Year, employers should carefully evaluate whether they need to adjust their current practices to ensure that they remain compliant with state and local laws, including those relating to minimum wage and salary thresholds for exempt employees.
As reflected in the charts below, in 2022, minimum wages will increase in more than two dozen states and localities, with many changes taking effect January 1st. Accordingly, employers with minimum wage workers should consult with counsel to ensure that their compensation practices are compliant with the laws in all jurisdictions in which they operate. Employers should pay particular attention to the effective date to ensure compliance by the appropriate date.
With the start of the New Year, new state and local minimum wage increases have gone into effect for non-exempt employees across the country.
The chart below summarizes the new minimum wage rates that went into effect on January 1, 2020, unless otherwise indicated. (More will take effect July 1, 2020.)
Jurisdiction | Current Minimum Wage | New Minimum Wage |
Alaska | $9.89 | $10.19 |
Albuquerque NM (No Benefits) | $9.20 | $9.35 |
Albuquerque NM (Benefits) | $8.20 | $8.35 |
Arizona | $11.00 | $12.00 |
Arkansas | $9.25 | $10.00 |
Belmont CA | $13.50 | $15.00 |
California (≥ 26 employees) | $12.00 | $13.00 |
California ... |
A number of states and localities are about to implement mid-year hikes in the minimum wage. Below is a summary of the minimum wage increases (and related tipped minimum wage requirements, where applicable) that go into effect on July 1, 2018.
Current | New | ||||
State | Special Categories | Minimum Wage | Tipped Minimum Wage | Minimum Wage | Tipped Minimum Wage |
Maryland | $9.25 | $3.63 | $10.10 | N/A | |
Nevada | Employees with qualified health benefits | $7.25 | N/A | ||
Employees without health benefits | $8.25 | N/A | |||
Oregon | General | $10.25 | $10.75 | ||
Urban (Portland Metro Urban Growth Area) | $11.25 | $12.00 | |||
Rural (Nonurban) |
In 2017, a great many states and localities passed laws increasing minimum wages beginning on January 1, 2018. (Some passed laws that will be effective on July 1, 2018 or other dates.)
Below is a summary of the minimum wage updates (and related tipped minimum wage requirements, where applicable) that go into effect on January 1, 2018, unless otherwise indicated.
Current | New | ||||
State | Categories | Minimum Wage | Tipped Minimum Wage | Minimum Wage | Tipped Minimum Wage |
Alaska | $9.80 | $9.84 | |||
Arizona | $10.00 | $7.00 | $10.50 | $7.50 | |
California | |||||
26 or more employees | $10.50 | $11.00 | |||
25 or fewer employees | $10.00 |
The Missouri Supreme Court has overturned a lower court’s ruling that St. Louis’ minimum wage ordinance is invalid, finding that the ordinance is not preempted by the state law.
St. Louis City’s Ordinance 70078 (“the Ordinance”) provides for a series of increases to the minimum wage for employees working within the boundaries of St. Louis. The plaintiffs argued that Ordinance 70078 was preempted by the state minimum wage law. The plaintiffs contended that state law affirmatively authorized employers to pay as little as $7.65 per hour, the state minimum wage rate.
A trial ...
One of the featured stories on Employment Law This Week – Epstein Becker Green’s new video program – is the increase in minimum wage laws across the country in 2016. Nationwide, activism around minimum wages has had a big impact on new legislation coming into effect this year. Sixteen states and the District of Columbia will raise their minimum wages in 2016. California and Massachusetts will have the highest state minimum wages at $10/hour. Some city governments have gone even higher. San Francisco employers and large Seattle employers who do not provide medical benefits ...
President Obama has spent much of his second term zealously pursuing an increase to the current $7.25 federal minimum hourly wage. While it is not clear whether a federal wage hike is in the offing, many states have recently taken measures to increase their own minimum wage rates. Effective January 1, 2014, Arizona, Colorado, Connecticut, Florida, Missouri, Montana, New Jersey, New York, Ohio, Oregon, Rhode Island, Vermont and Washington have all increased their minimum wage rates. There are also five additional states, California, Delaware, Michigan ...
Blog Editors
Recent Updates
- California Minimum Wage Will Still Increase Even Though Voters Rejected a Minimum-Wage Hike
- Not So Final: Texas Court Vacates the DOL’s 2024 Final Overtime Rule
- Voters Decide on State Minimum Wages and Other Workplace Issues
- Second Circuit Provides Lifeline to Employers Facing WTPA Claims in Federal Court
- Time Is Money: A Quick Wage-Hour Tip on … FLSA Protections for Nursing Mothers