Yesterday voters in several states voted to increase the minimum wage.  Due to lack of action at the federal level, several states have been moving towards increasing state minimum wage rates which take priority over the federal minimum wage when states limits are higher.

 

 

Arizona, Colorado, Maine and Washington all voted to increase their state’s minimum wage over the next few years.

 

Arizona proposition 206 will increase the minimum wage incrementally from $8.05 to $12.00 per hour by 2020 starting with an increase in 2017 to $10.00.  The measure also allows workers to earn one hour of paid sick time for every 30 hours worked, depending on the size of the business. It also broadens the conditions that allow for sick time to include mental or physical illness or needing to care for a family member.

 

Colorado voters decided to join other states by voting to raise the minimum wage in the state, in steps, between 2017 and 2020 after passage of Amendment 70.  The minimum wage will be raised to $9.30 in 2017 and will continue to increase. The increase will take a full-time minimum-wage worker’s pay from $17,285 a year to $24,960 by 2020.

 

Maine ballot initiative, Question 4, increases the minimum wage by a dollar every year to an eventual $12 by 2020 — with an immediate increase from $7.50 to $9 in 2017.

 

Washington’s Initiative 1433 raises the hourly wage by roughly $4 over three years, to $13.50. The measure also would require employers to provide paid sick leave — at least one hour for every 40 worked — that could be used to care for family members or as “safe leave” for those who miss work because of domestic violence.

 

As we continue to analyze the impact of the most recent election, we will continue to provide alerts pertaining to ordinances passed by state and municipal elections.

 

 

Thank you for choosing Paylocity as your payroll tax partner. Should you have any questions please contact your Paylocity account manager.

 

 

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a payroll service provider are encouraged to seek the advice of a qualified CPA, tax attorney, or advisor.