2014 Minimum Compensation Rates

New Year Brings Changes in Minimum Compensation Rates in Eighteen States and Local Jurisdictions

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, 2014 (except where another effective date noted):

JURISDICTION EXEMPTION MINIMUM COMPENSATION
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 $7.90/hour (increase from 2013)
CALIFORNIA Nonexempt $9.00/hour (increase from 2013, effective July 1, 2014)
San Francisco $10.74/hour (increase from 2013)
San Jose $10.15/hour (increase from 2013)
Executive, Professional or Administrative $3,120.00/month on salary basis (increase from 2013, effective July 1, 2014)
Computer $40.38/hour, $7,010.88/month or $84,130.53/year (increase from 2013)
Licensed Physician $73.57/hour (increase from 2013)
COLORADO Nonexempt $8.00/hour (currently under consideration; would be increase from 2013)
CONNECTICUT Nonexempt $8.70/hour (increase from 2013)
FLORIDA Nonexempt $7.93/hour (increase from 2013)
ILLINOIS Nonexempt $8.25/hour
MAINE Nonexempt $7.50/hour
MASSACHUSETTS Nonexempt $8.00/hour
MICHIGAN Nonexempt $7.40/hour
MISSOURI Nonexempt $7.50/hour (increase from 2013)
MONTANA Nonexempt $7.90/hour (increase from 2013)
NEVADA Nonexempt $7.25/hour (if qualifying health benefits available)
$8.25/hour (all others)
(increase may be announced in April 2014)
NEW JERSEY Nonexempt $8.25/hour (increase from 2013)
NEW MEXICO Nonexempt $7.50/hour
  Santa Fe $10.51/hour (increase may be announced in January 2014)
  Albuquerque $7.60/hour
(if qualifying healthcare and/or childcare benefits provided)
$8.60/hour (all others)
(increase from 2013)
OHIO Nonexempt $7.95/hour (only for employers with gross revenue of $292,000/yr) (increase from 2013)
OREGON Nonexempt $9.10/hour (increase from 2013)
RHODE ISLAND Nonexempt $8.00/hour (increase from 2013)
VERMONT Nonexempt

$8.73/hour (increase from 2013)

WASHINGTON, DC Nonexempt $8.25/hour
WASHINGTON
STATE
Nonexempt $9.32/hour (increase from 2013)
SeaTac $15.00/hour (increase from 2013, subject to pending litigation)
Outside Sales Exemption guaranteed salary, commission, or fee
NOTES
  1. Equivalent amounts if paid on salary basis: $910 biweekly; $985.83 semimonthly; $1971.66 monthly; or $23,660 annualized.
Related Contacts
Lois Voelz Senior Counsel, Palo Alto
Gregory Tenhoff Partner, Palo Alto
Wendy Brenner Partner, Palo Alto
Dennis Childs Senior Counsel, San Diego
Leslie Cancel Special Counsel, San Francisco
Joshua Mates Partner, San Francisco
Frederick Baron Partner, Palo Alto
Elizabeth Lewis Partner, Reston
Eric Kauffman Special Counsel, San Diego
Michael Sheetz Partner, Boston
Related Practices & Industries

Employment & Labor