News

2012 Minimum Compensation Rates

New Year Brings Changes in Minimum Compensation Rates in Nine States
December 21, 2011

Employers should review compensation rates for both exempt and nonexempt employees, to ensure compliance with current legal thresholds. Set forth below are rates at the federal level, and for the states and localities that exceed federal levels for the most common job categories.

The following minimum compensation rates are effective as of January 1, 2012:

JURISDICTIONEXEMPTIONMINIMUM COMPENSATION
FEDERALNonexempt$7.25/hour
Executive$455/week on salary basis
Professional or Administrative$455/week on salary or fee basis
Computer$27.63/hour
Highly Compensated$100,000 total compensation (including minimum $455 minimum weekly salary or fee)
Licensed practicing Medical Doctor or Attorney; TeacherNone
Business Owner (20% minimum equity and engaged in management)None
Outside SalesNone
In the following jurisdictions, rates higher than the federal rates prevail.
ALASKANonexempt$7.75/hour
ARIZONANonexempt$7.65/hour (increase from 2011)
CALIFORNIANonexempt$8.00/hour
$10.24/hour (San Francisco) (increase from 2011)
Executive, Professional or Administrative$2,773.33/month on salary basis
Computer$38.89/hour, $6,752.19/month or $81,026.25/year (increase from 2011)
Licensed Physician$70.86/hour (increase from 2011)
COLORADONonexempt$7.64/hour (increase from 2011)
CONNECTICUTNonexempt$8.25/hour
FLORIDANonexempt$7.67/hour (increase from 2011)
ILLINOISNonexempt$8.25/hour
MAINENonexempt$7.50/hour
MASSACHUSETTSNonexempt$8.00/hour
MICHIGANNonexempt$7.40/hour
MONTANANonexempt$7.65/hour (increase from 2011)
NEVADANonexempt$7.25/hour (if qualifying health benefits available)
$8.25/hour (all others)
NEW MEXICONonexempt$7.50/hour
NEW YORKNonexempt$7.25/hour
OHIONonexempt$7.70/hour (increase from 2011)
OREGONNonexempt$8.80/hour (increase from 2011)
RHODE ISLANDNonexempt$7.40/hour
VERMONTNonexempt$8.46/hour (increase from 2011)
WASHINGTON, DCNonexempt$8.25/hour
WASHINGTON
STATE
Nonexempt$9.04/hour (increase from 2011)
Outside Sales Exemptionguaranteed salary, commission, or fee

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