Upcoming Minimum Wage Increases

There are three upcoming minimum wage increases taking effect this summer. Two states and Washington, D.C. will each be increasing their minimum wage. Household employers are required to pay their nannies or other employees no less than the state minimum wage if it is more than the federal minimum wage of $7.25 per hour. Otherwise they must not pay less than the federal minimum wage.

The areas with minimum wage increases in the next few months are:

Delaware: rising from $7.75 to $8.25, effective June 1, 2015.

Washington, D.C.: rising from $9.50 to $10.50, effective July 1, 2015.

Minnesota: rising from $6.50 to $7.25 for small employers*, effective August 1, 2015.

*Minnesota has two separate categories for minimum wage requirements – large employers (those with revenue of $500,000 or more) and small employers (revenue of less than $500,000). Household employers would fall into the “small employer” category.

The Federal Labor Standards Act (FLSA) requires that a minimum wage be paid for all hours an employee is permitted to work and that overtime be paid for any hours worked over 40 in a week.

For more information, please contact GTM’s Household Employment Experts at (888) 432-7972.