2013 Minimum Compensation Rates

New Year Brings Changes in Minimum Compensation Rates in Thirteen States and Local Jurisdictions
December 12, 2012

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, 2013 (except where another effective date noted):

FEDERAL Nonexempt $7.25/hour
Executive $4551/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; Teacher None
Business Owner (20% minimum equity and engaged in management) None
Outside Sales None
In the following jurisdictions, rates higher than the federal rates prevail.
ALASKA Nonexempt $7.75/hour
ARIZONA Nonexempt $7.80/hour (increase from 2012)
CALIFORNIA Nonexempt $8.00/hour
San Francisco $10.55/hour (increase from 2012)
San Jose $10.00/hour (effective approximately Feb./Mar. 2013)
Executive, Professional or Administrative $2,773.33/month on salary basis
Computer $39.90/hour, $6,927.75/month or $83,132.93/year (increase from 2012)
Licensed Physician $72.70/hour (increase from 2012)
COLORADO Nonexempt $7.78/hour (increase from 2012)
CONNECTICUT Nonexempt $8.25/hour
FLORIDA Nonexempt $7.79/hour (increase from 2012)
ILLINOIS Nonexempt $8.25/hour (increase currently under consideration)
MAINE Nonexempt $7.50/hour
MASSACHUSETTS Nonexempt $8.00/hour
MICHIGAN Nonexempt $7.40/hour
MISSOURI Nonexempt $7.35/hour (increase from 2012)
MONTANA Nonexempt $7.80/hour (increase from 2012)
NEVADA Nonexempt $7.25/hour (if qualifying health benefits available)
$8.25/hour (all others) (increase may be announced in April 2013)
NEW JERSEY Nonexempt $7.25/hour (increase to $8.50/hour currently under consideration)
NEW MEXICO Nonexempt $7.50/hour
OHIO Nonexempt $7.85/hour (only for employers with gross revenue of ≥$288,000/yr) (increase from 2012)
OREGON Nonexempt $8.95/hour (increase from 2012)
RHODE ISLAND Nonexempt $7.75/hour (increase from 2012)
VERMONT Nonexempt $8.60/hour (increase from 2012)
WASHINGTON, DC Nonexempt $8.25/hour
Nonexempt $9.19/hour (increase from 2012)
Outside Sales Exemption guaranteed salary, commission, or fee

1 Equivalent amounts if paid on salary basis: $910 biweekly; $985.83 semimonthly; $1971.66 monthly; or $23,660 annualized.

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