Happy New Minimum Wage!
What? Did you think that July was just the month that marked the middle of summer?
No, July is also the favorite month for cities, counties and local governments to realign their minimum wage rates.
We have put together an overview of what’s changing, and what’s staying the same:
|Location||If you have 25 or fewer employees||If you have 26 or more employees|
|California state (no change)||$11.00||$12.00|
|Los Angeles city||$13.25||$14.25|
|Los Angeles county||$13.25||$14.25|
|San Diego (no change)||$12.00||$12.00|
|New York state (no change)||$11.10||$11.10|
|New York city (no change)||$13.50
(10 or less employees)
(11 or more employees)
|Nassau, Suffolk, and Westchester Counties (no change)||$12.00||$12.00|
|New Jersey state||$8.85 (4 or less employees)||$10.00 (5 ore more employees)|
Keep in mind – these increases are not California state increases, so they have no impact on exempt level employees.
How to Prepare for Minimum Wage Increases
Your company should take some steps to ensure that increasing the employee wages won’t damage the financial health of the company overall. For smaller companies, the extra requirements can be taxing. Here are a few things to consider when planning for the immediate and long-term future:
- Knowledge is Key. It’s important for you to stay up-to-date on changes in your area. This includes current and future minimum wage requirements, as well as any new laws and regulations pertinent to your employees. It’s a good idea to review new regulations with an HR professional, or counsel, to make sure that your practice and process meets state and federal standards.
- Conduct an Internal Audit. It’s important that you know how these increased payroll expenses will impact the company ahead of time. An internal and thorough audit will give you a good indication of where your financial solvency is after the increase. It will also help you to map goals for growth into the future.
- Streamlining Workflow. There are often areas of workflow that can be simplified to save person hours. This might include adding new technology, or changing set processes to improve production.
Meeting the New Minimum Wage Requirements in 2019 and Beyond
You’re not alone if you’re worried about how the wage increase will affect your business. Proper planning and good oversight will make adjustments far smoother than you might fear. Keep in mind, yours isn’t the only business faced with these challenges. Other businesses in your area will be maneuvering through these requirements, as well.