CWS 3.0: November 12, 2014

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Voters in four states raise minimum wages; Mass. approves sick leave law

Voters in four states and several cities approved increases in minimum wages, and an advisory referendum to raise the minimum wage was OK’d in a fifth state. Voters also weighed in on mandatory paid sick leave with Massachusetts voters approving a new sick leave law.

“These changes highlight the need for buyers to make sure they are working with reputable and compliant companies,” said Bryan Peña, VP, contingent workforce strategies and research, at Staffing Industry Analysts. “They need to hold their suppliers accountable for understanding changes in the law and make sure their company and contingents are compliant with these changes. These changes almost certainly will not be the last in what will become an increasing complex employment landscape.”

States where voters raised the minimum wage include Alaska, Arkansas, Nebraska and South Dakota:

  • Alaska’s minimum wage will rise to $8.75 per hour as of Jan. 1, and it would rise to $9.75 per hour as of Jan. 1, 2016. It would then be adjusted each year for inflation. The bill also called for Alaska’s minimum wage to always remain at least $1 above the federal minimum wage. Tips or gratuities would not count toward the minimum wage. Alaska’s present minimum wage is $7.75 per hour.
  • Arkansas’ minimum wage will rise to $7.50 per hour on Jan. 1; rise to $8.00 per hour on Jan. 1, 2016; and rise to $8.50 per hour on Jan. 1, 2017. Arkansas’ minimum wage is presently $6.25.
  • Nebraska’s minimum wage will rise to $8.00 per hour on Jan. 1, and then rise to $9.00 per hour on Jan. 1, 2016. Nebraska’s present minimum wage is $7.25 per hour.
  • South Dakota’s minimum wage for non-tipped employees would rise to $8.50 per hour effective Jan. 1 and would be increased annually based on the cost of living (but it may not be decreased). The minimum hourly wage for tipped employees would be half the minimum wage for non-tipped employees. South Dakota’s minimum wage is presently $7.25 per hour.

Illinois voters approved an advisory referendum to up the minimum wage to $10 an hour starting Jan. 1., GateHouse Media Illinois reports. The state’s minimum wage is now $8.25 per hour, although workers under 18 years old may be paid 50 cents per hour less.

City voters in San Francisco raised the minimum wage there to $15 per hour effective July 1, 2018. San Francisco’s minimum wage already was slated rise to $11.05 on Jan. 1, 2015, based on existing law. Under the measure approved by that city’s voters last week, it will rise to $12.25 in May 2015, to $13.00 in July 2016, to $14.00 in July 2017 and to $15.00 in July 2018. After that, it will increase each July based on the consumer price index.

Across the Bay, Oakland, Calif., voters approved raising that city’s minimum wage to $12.25 per hour in March from $9 an hour now, KCBS reported. The measure in Oakland guarantees five sick days a year as well, going above the state’s requirement of three.

Sick Leave
Massachusetts voters approved Question 4, a sick leave measure that allows workers at companies with 11 or more employees to earn and use 40 hours of paid sick time per year. Employees at smaller companies would also get up to 40 hours per year, but it would be unpaid. The only other states with mandatory paid sick leave are California and Connecticut.

Voters in the cities of Trenton and Montclair, both in New Jersey, also approved paid sick leave laws. Trenton’s law allows workers to earn one hour of sick time for every 30 hours worked, NJ.com reports. Workers at businesses with 10 or more employees may earn up to five sick days a year. Those at smaller businesses will earn three. Montclair’s law also requires businesses to give one hour of paid sick time for every 30 hours worked.