With the new Biden Administration, there is a renewed effort to increase the Federal minimum wage from $7.25 per hour to $15.00 per hour for all non-exempt hourly employees. Depending on what state your organization operates in, the state minimum may be lower or higher than the Federal minimum. In Georgia and Wyoming, employers can pay their employees $5.15 per hour unless the employers are subject to the Fair Labor Standards Act, then the employers must pay $7.25 per hour. There are currently 19 states using the Federal minimum of $7.25 as their state minimum wage per hour. That leaves 29 states (58%) that are paying their employees a minimum wage above the Federal minimum. Fifteen states are paying $11.00 per hour or higher and fourteen states are paying between $8.00 and $10.50 per hour. Washington, D.C. is paying $15.00 per hour as the highest non-state district followed by the State of Washington at $13.69 per hour. However, CA has a law for businesses with 26 or more employees where they must pay their employees starting at $14.00 per hour.
Many companies are moving towards the proposed $15 per hour figure to attract, grow and retain their employee base. However, they are seeking to accomplish these higher wage figure minimums over a period of years vs. over night. Many states have also passed phased in multi-year adjustments over a three to five year period of time. We agree with these approaches as they are good for business and the economy and hope our country and the other states can also head in this direction.