Business with multiple locations often face differing minimum wage rates based on state, county, and municipal requirements. Our Automated Minimum Wage Tracker, E-Wage, provides a visual searchable interface that makes it easy to see the exact up-to-date minimum wage rate for all of your locations. You’ll never guess as to what the minimum wage is, when you have an up to date list of every minimum wage in the country.
What Rate Applies?
Minimum wage rates vary by jurisdiction. Depending on its location, a business is subject to the federal, state and local minimum wage law. So what minimum wage rate applies? The minimum wage rate that provides the greater benefit to the worker (i.e., the highest minimum wage rate) is the wage rate that applies.
When Do Minimum Wage Rates Change?
Minimum wage rates change frequently. The minimum wage rate is either a fixed or adjustable rate. A fixed minimum wage rate is a specific amount established by law. Sometimes the law will schedule specific, incremental increases in the minimum wage rate over time.
Adjustable minimum wage rates are tied to inflation. States or localities that adjust minimum wage rates for inflation usually tie the minimum wage rate to the local Consumer Price Index (CPI). The CPI is measured every year and the percentage increase in the CPI is applied to the minimum wage rate to achieve an inflation-adjusted minimum wage rate.
Scheduled minimum wage rate increases and inflation-adjusted minimum wage rates usually occur once per year. New minimum wage rates typically go into effect on January 1 or July 1, but changes can happen at any time. Employers should be aware of the current minimum wage rate and prepared for future increases.