The 2013 federal minimum wage will remain unchanged at $7.25 per hour for non-tipped employees, and $2.13 per hour for tipped employees. However, 7 states have announced that their minimum wage will increase on January 1, 2013. Moreover, one state has proposed an increase. Additionally, 2013 minimum wage determinations have not yet been announced by two states whose minimum wage is adjusted each January 1.

States Increasing Minimum Wage

Arizona: The Industrial Commission of Arizona announced that the minimum wage will increase from $7.65 to $7.80 per hour for non-exempt employees effective January 1, 2013. The minimum wage for tipped employees increases from $4.65 to $4.80 per hour, plus tips.

Florida: It was announced that the minimum wage will increase from $7.67 to $7.79 per hour, effective January 1, 2013. The minimum wage for tipped employees increases from $4.65 to $4.77 per hour, plus tips.

Montana: The Department of Labor & Industry announced that effective January 1, 2013, the minimum wage will increase from $7.65 to $7.80 per hour for non-exempt employees.

Ohio: The Department of Commerce announced that effective January 1, 2013, the minimum wage will increase from $7.70 to $7.85 per hour for non-tipped employees. In 2013, the minimum wage increases from at least $3.85 to at least $3.93 per hour, plus tips, for tipped employees. Note that the 2013 minimum wage provisions will only apply to business with annual gross receipts of more than $288,000 per year (in 2012: more than $283,000 per year).

Oregon: The Bureau of Labor & Industries announced that effective January 1, 2013, the minimum wage will increase from $8.80 to $8.95 per hour for non-exempt employees.

Rhode Island: The governor signed two bills (available here and here) increasing the minimum wage from $7.40 to $7.75 per hour for non-exempt employees, effective January 1, 2013. Rhode Island permits employers to apply a tip credit toward satisfying its minimum wage obligations for tipped employees, and sets a minimum cash wage tipped employees must be paid. However, that statute was not amended, so the minimum cash wage a tipped employee must be paid remains $2.89 per hour. However, the tip credit an employer may apply increases from $4.51 to $4.86 per hour.

Washington: The Department of Labor & Industries announced that effective January 1, 2013, the minimum wage will increase from $9.04 to $9.19 per hour for non-exempt employees.

State Proposing Minimum Wage Increase

Colorado: The Department of Labor & Employment has proposed increasing the minimum wage, effective January 1, 2013, from $7.64 to $7.78 per hour for non-tipped employees. The Department also proposes increasing the minimum wage from to $4.62 to $4.76 per hour for tipped employees.

States Where Minimum Wage Determination Is Pending

By statute, the minimum wage in Missouri and Vermont is adjusted on January 1. However, to date, no announcements have been made concerning these states’ 2013 minimum wage.

We will continue to monitor, and report on, final minimum wage determinations in Colorado, Missouri, and Vermont.

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