In United States, the majority of employers are bound by both the federal and state wage-and-hour laws. In the case where there is a difference between state law and federal law, the rule is to elect the law that is more beneficial to the worker.
Minimum-wage increases occurred in more than one-third of U.S. states on January 1, 2019 and triggered a tremendous change for employers in regards of HR compliance.
ORCOM KVB has to comply to Federal law but also to New York state, California and Massachusetts laws because the company has employees in these 3 states. Below is a summary of the changes for the states related.
New York State
Effective December 31, 2018, in NYC, the minimum wage is $13.50 per hour (businesses with less than 10 employees), and $15.00 per hour (with more than 11 employees) and also for fast food employees. Outside of NYC and outside of Nassau, Suffolk and Westchester Counties: the hourly rate is lower.
The goal is to have the minimum wage increase every year across New York State until it reaches $15.00 per hour in 2020.
In addition to changes to the minimum wage, employers must ensure that their employees classified as exempt (salaried Employees) or non-exempt (hourly employees).
For exempt employees, the minimum salary necessary to claim the overtime exemption has rise significantly, again depending on the employer’s size and location. Effective December 31, 2018, the new thresholds in New York City for businesses are: $58,500 per year (11 or more employees), $52,650.00 per year (10 or fewer employees). Outside of NYC and outside of Nassau, Suffolk and Westchester Counties: thresholds are lower.
All private employers in New York State must also provide all of their employees (both exempt and hourly) with a pay notice: LS 54 form for Hourly Employees and LS 56 for salaried Employees/exempt.
This pay notice must include specific information and must be provided to each employee employed in New York State by February 1 every year and whenever an employee is hired.
The notice must be presented in the employee’s language of choice. Additionally, new notices must be presented to employees if their pay is decreased.
California
As of January 1, 2019, the minimum wage in California is $11.00 for employers with 25 or fewer employees and $12.00 for employers with 26 or more employees.
But many cities and counties in California have a higher minimum wage. For example, in the City of San Francisco the minimum wage is $15 per hour.
On January 1, 2019, California’s minimum salary threshold for overtime-exempt employees has risen for employers having at least 26 employees to $49,920 from $45,760 (annually).
For employers having no more than 25 employees has risen to $45,760 from $43,680 (annually).
Also effective January 1, California’s computer-software employees are to be exempt from overtime requirements if they earn at least $94,603.25 a year ($90,790.07 before), and licensed physicians and surgeons are exempt if they earn at least $82.72/hour ($79.39/hour before).
Massachusetts
Starting January 1, the state’s minimum wage is set to rise over the next five years starting with a jump to $12 an hour this January. Tipped workers will also see a bump up, from $3.75 to $4.35 an hour.
Wages will increase gradually each year for the next five years until reaching on January 1, 2023: $15 /hour for standard and $6.75 /hour for tipped.
