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Navigating Minimum Wage Changes: What Employers Need to Know

Jerika Holton
Jun 30, 2023
10 min

Let’s Talk Minimum Wage

The minimum wage represents the minimum compensation that employers are legally obligated to pay employees. This threshold is set by the FLSA (Fair Labor Standards Act). While there is a federal minimum wage limit, individual states have the option to establish higher rates; however, they cannot pay employees less than the federal limit. If employees are compensated in piece rate, tips, or other unique forms of payment then their earnings must be adjusted to meet the requirement of the federal minimum wage.

Upcoming Minimum Wage Changes

Starting July 1, 2023 there will be a minimum wage increase for the following states:

  • Oregon: to $14.20 from $13.50

              -Portland Metro to $15.45 from $14.75

              -Non-Urban counties to $13.20 from $12.50

              -Oregon will no longer permit tip credits

  • Washington, DC: to $17.00
  • Nevada: to $11.25 if there is no qualifying health plan and $10.25 if employers offer health plans

What These Changes Mean for Your Organization

With all the new changes to minimum wage requirements, there are several steps your organization should take to ensure compliance. You may find it beneficial to your organization to consult with legal counsel, try on-demand HR/Employment Legal and Compliance Services MyHRCounsel. The specific steps may vary depending on the jurisdiction and the nature of your organization, however, here is a general outline of what organizations should do:

  • Keep Employees Informed: Stay up-to-date on changes to minimum wage laws at the federal, state, and local levels. Make sure changes are communicated not only to your internal team, but to employees as well.
  • Review Current Wages: Although you are not obligated to update current wages when minimum wage increases, it can be a good idea to review your organization's current wage structure. By reviewing your current pay structure, you can ensure employees are properly compensated based on their skills and job position in comparison to minimum wage.
  • Review Budgets: Analyze how the impact of the minimum wage can affect your organization's payroll budget. The increased labor cost may affect your budget for certain projects or departments.
  • Update Internal Documentation: Revise employment policies, procedures, and contracts to reflect the new minimum wage rates.  

Click the map below to download a chart that includes the minimum wage requirements per state as of July 1, 2023.

map of us with individual states labeled

What’s Next?

Ensure that the payroll software you use is up to date to incorporate the adjustments in the minimum wage. Payroll providers such as Greenshades guarantee automatic compliance with the changes for your organization, while outdated systems may require manual updates for meeting the minimum wage requirements. It is crucial for your team to consistently review payroll records and procedures to ensure continual adherence to the updated minimum wage standards.

Want to learn more about how your team can ensure payroll compliance with Greenshades? Contact us at  

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