Efforts to increase the minimum wage rates continue in several states and municipalities across the nation. Kentucky and New Jersey are just two states with introduced bills that if passed will increase the minimum wage rate. Kentucky’s current minimum wage is $7.25 per hour and has been the same since 2009. Under Kentucky’s Bill H 278, the minimum wage rate will increase over the next three years. Starting August 1, 2016 the rate will increase to $8.20 per hour. Then the rate will increase to $9.15 per hour starting July 1, 2017, and $10.10 per hour starting July 1, 2018. Businesses whose average annual gross volume of sales is less than $500,000 would be exempt from the increase.
New Jersey’s current rate of $8.38 per hour was approved by voters in 2013, which is tied to inflation. Under the proposed bill (A 15), the state’s minimum wage rate will increase to $15 per hour over eight years. The plan is to also have voters approve the bill on the 2017 ballot. Small businesses with fewer than 50 employees may qualify for a tax credit to help them absorb the large increase at once.
Compliance Poster Company will continue to follow these bills during the legislative process. Make sure to visit our website soon for new updates.