BACKGROUND
There are both state and federal minimum wages. Employers in the state must pay the higher of the applicable state or federal minimum wage. The current federal minimum wage is $7.25 an hour. The current federal wage generally applies to covered employees of employers who have annual gross volume of sales made or business done of $500,000 or more. The current state minimum wage for large employers is $6.15 an hour and for small employers is $5.25 an hour. A large employer is defined as an enterprise whose annual gross volume of sales made or business done is not less than $625,000. A small employer is less than $625,000. The state also has a youth or training wage of $4.90 an hour for persons under the age of 20 for the first 90 consecutive days of work. There are some types of employers and some types of employees that are exempted from minimum wage coverage under both federal and state law.
Section 1 increases the minimum wage.
For large employers the minimum wage is increased to $8.35 an hour beginning August 1, 2013, $9.45 an hour beginning August 1, 2014, $10.55 an hour beginning August 1, 2015, and then adjusted annually for inflation each January 1, beginning January 1, 2016. A mechanism for adjusting for inflation is specified using a particular Consumer Price Index.
For small employers the minimum wage is increased to $6.50 an hour beginning August 1, 2013, $7.25 an hour beginning August 1, 2014, $9.00 an hour beginning August 1, 2015, and then adjusted annually to inflation each January 1, commencing January 1, 2016.
The youth or training wage is increased to $6.07 an hour beginning August 1, 2013, $7.24 an hour beginning August 1, 2014, and $8.41 an hour beginning August 1, 2015, and adjusted annually for inflation each January 1, commencing January 1, 2015.
The bill is effective the day following final enactment.
JCF/syl
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