MINIMUM WAGE INCREASE
Chefsint
23 Posts
When administering wage increase do we look at week ending date or paydate?
Chefsint
23 Posts
Chefsint
23 Posts
Comments
Since each state can write it's own minimum wage law, there can be a lot of different ways to do this. Assuming you are referring to a state change, you really need to look at the state statute, which is probably online somewhere.
This is a state increase, FL. I understood it the same. However, ADP is stating otherwise.
Effective date of state increase was 1/1/08.
I did not put increase into effect for w/e 12/30/07, paydate 1/4/08 because wages were earned prior to January 1. Our rep is stating since paydate is in January wage increase is effective. Have not been able to get a confirmed answer from any of my contacts at ADP to date.
I know that the State of <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Oregon states, $7.95 per hour beginning Jan 1, 2008 so that leads me to believe that wages earned in 2007 but paid in 2008 would not be subject to the increase. I would call your state DOL or look at their website, because ADP's answer does not make sense. They are stating that you have to pay the increase retro-actively. If you instate raises company wide, would you have an effective date of April 1 and retro-actively pay the raise in March?
OK, now I understand your situation better. I agree with Pam that it is probably based on the date earned rather than the date paid. Unfortunately, it's been a long time since I've worked with a company that was not substantially above minimum wage for its entire workforce.
The Constitutional provision is section 24, Article X. The statutory provision is section 448.110, Florida Statutes, which became effective on December 12, 2005. You can get to the text of the statute and the constitutional amendment from the website of the department responsible for Florida's annual minimum wage evaluation: http://www.floridajobs.org/resources/fl_min_wage.html
I don't see where the statute refers to anything but an effective date of the new minimum wage which, like any other pay increase, typically refers to when the horus were worked. This seems simple to me but I'm not particularly familliar with Florida and I'm not a lawyer. If ADP is saying you have to retro pay the minimum wage and if that is a substantial amount, I'd talk to an attorney to get it resolved before your payroll is due.
I would agree with both you and Pam. The effective date is for monies earned beginning after 1/8/2008. You are dealing with hours worked as the statute states and most state language including Florida is the same- since it is my home state and my company has a site there as well.
Best of Luck,
Angie
Given the way government works, we update based on pay date because the rate increase goes into effect, for example, January 1st, 2008. Even though the hours worked my have occured in 2007 or part of 2007, your pay date will be after the rate increase. Not changing the rate by the pay date would make it look as though you hadn't increased the minimum wage rate as of the date it went into effect. This seems to be the government line of reasoning we have encountered. Also, it is less costly to do this earlier than to run into fines because you were non-compliant or worse yet, have an FLSA lawsuit by a disgruntled employee.
kelly@clean-works.com