Knowledge Center News
July Wage & Hour Changes: Is Your Organization Impacted?
July 1, 2022
Although most changes that affect payroll go into effect in January, others take place on July 1 with the start of a new fiscal year for many state and local governments. This year is no exception with July 1 bringing new wage-and-hour-related provisions to some states and municipalities. Based on the location of your organization and structure of your workforce, you may be required to comply.
Most of the July changes impact minimum wage levels, for example, the state-wide increases in Nevada, Oregon, Connecticut and Washington DC. In other states, local minimum wage requirements also apply, such as in Nevada where the minimum wage may differ if the employee is offered health insurance. In addition, several communities in California, Illinois, Oregon, Maryland and Minnesota also made city and county-level changes.
Some provisions also affect calculation of wages for workers who receive tips and for certain types of exempt staff. Looking at those changes, the minimum wage requirements in some states now apply to workers who are exempt from overtime regulations, such as those who hold professional, administrative, executive or outside sales positions. A few mandate that these staff must earn the applicable minimum wage or more for each workweek hour. If the employee works on a commission basis, the overtime exemption in Nevada, Oregon or Washington must be a at least 1.5 times the newly-increased minimum wage while in Connecticut, it must be double. A post by Epstein Becker Green, published in the National Law Review, summarizes minimum wage changes nationwide and the organizations to which they apply.
There may be additional new regulations in your jurisdiction which affect your employees. A detailed list of other 2022 wage-and-hour-related changes, including those which went into effect earlier in the year and those projected between now and January 1, 2023, are described in this Littler Mendelson article.
If you have minimum wage, exempt or tip-compensated employees, get in touch with your compensation specialist or employment legal counsel to ensure your compensation structure is compliant in the locations where you do business.
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