News

2014 Minimum Compensation Rates

New Year Brings Changes in Minimum Compensation Rates in Eighteen States and Local Jurisdictions
December 10, 2013

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.

This content is provided for general informational purposes only, and your access or use of the content does not create an attorney-client relationship between you or your organization and Cooley LLP, Cooley (UK) LLP, or any other affiliated practice or entity (collectively referred to as “Cooley”). By accessing this content, you agree that the information provided does not constitute legal or other professional advice. This content is not a substitute for obtaining legal advice from a qualified attorney licensed in your jurisdiction and you should not act or refrain from acting based on this content. This content may be changed without notice. It is not guaranteed to be complete, correct or up to date, and it may not reflect the most current legal developments. Prior results do not guarantee a similar outcome. Do not send any confidential information to Cooley, as we do not have any duty to keep any information you provide to us confidential. This content may be considered Attorney Advertising and is subject to our legal notices.