Before ringing in the New Year, employers should carefully evaluate whether they need to adjust their current practices to ensure that they remain compliant with state and local laws, including those relating to minimum wage and salary thresholds for exempt employees.
As reflected in the charts below, in 2022, minimum wages will increase in more than two dozen states and localities, with many changes taking effect January 1st. Accordingly, employers with minimum wage workers should consult with counsel to ensure that their compensation practices are compliant with the laws in all jurisdictions in which they operate. Employers should pay particular attention to the effective date to ensure compliance by the appropriate date.
Lastly, exempt salary thresholds are also increasing in some states. Employers must consider whether they have classified their employees appropriately and whether their employees are eligible for overtime under the new salary thresholds.
State:
| California | $14 per hour for employers with fewer than 25 employees |
| Michigan | $9.65 | $9.87 (unless the state’s unemployment rate for 2021 exceeded 8.5%, in which case the current $9.65 rate will remain in effect for 2022) |
| Minnesota |
| Nevada | $9.75 (for all other employers), eff. 7/1/2021 | $10.50 (for all other employers), eff. 7/1/2022 |
| New Jersey |
| New York | $12.50, eff. 12/31/2020 | $13.20, eff. 12/31/2021 |
| Ohio | $8.80 | $9.30 (for employers with annual gross... |
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