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Category: Overtime & Wages

Are You Underpaying Your Employees?

Let’s face it: there are a lot of regulations to follow when it comes to owning a business. Following all the applicable laws can be tough. Although it can be time consuming, you should make sure that you are always following the latest legal protocol. The best way to avoid these pitfalls is to hire an HR consultant to keep you on the right path. However, not every business can afford someone like that, so you should know where to go if you’re the self-help type of business owner. A good place to start is the Fair Labor Standards Act (FLSA) website. The FLSA establishes standards for minimum wages, overtime pay, record keeping, and child labor. So, what are some common pitfalls employers run into that lead to underpaying employees?

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2018 State Minimum Wage Changes

State minimum wage increase table

Note: These rates should be used for general informational purposes only and are not intended to be used for legal or professional purposes. Please visit state websites before making changes to employees’ rates.

There are a lot of minimum wage changes this year in the nation’s states. The rates are to take effect on January 1st, 2018 but some, like New York, may take effect December 31st, 2017.

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As Cities Fight For Wage Increases, States Ban Local Efforts

St Louis Capitol Building and Arch

On August 28th, 2017, many minimum wage workers that saw a wage increase back in May will see that increase revoked. The state government of Missouri passed a law barring municipalities from raising the minimum wage above the state’s rate.

When the state’s rate goes into effect, employers are at liberty to reverse the increases employees got in St. Louis due to the local law. The city’s new minimum wage will revert to $7.70 per hour. That’s a $2.30, or 23%, pay cut for employees.

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California’s Minimum Wage Hike

Fight for 15

Several cities have significantly raised the minimum wage in recent years around the $15 per hour range but California is the first state in the nation to do it. On Monday, Governor Jerry Brown and California state legislators reached a deal to raise the minimum wage to $15 per hour by 2022. The deal raises the minimum wage from the current $10 per hour by 50 cents per year for 2 years, and then by one dollar for four years.

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