Today's Technology for Tomorrow's Firm.
Issue link: https://cpapracticeadvisor.epubxp.com/i/728133
THE LABOR LAW ADVISOR By Richard D. Alaniz Regulations, Executive Orders and Court Rulings: Part 2— What Employers Need to Know Now By Richard D. Alaniz In t h e f i r st par t , we l o oked at upcoming regulatory changes that will definitely affect many organizations. Here, we look at court rulings and state laws that promise more expenses, paperwork, and headaches for many more companies. Increases in the minimum wage Although the current federal min- imum wage is $7.25 per hour, more than half the states and Washington, D.C., require employers to pay a higher hourly pay rate. In some states, those minimum wages are nearly double the federal rate. And when states and local governments have higher rates, the higher rate prevails. For example, earlier this year Cali- fornia and New York both set their minimum wages to reach $15 per hour over the next several years. In Cali- fornia, the state's hourly minimum wage will rise to $15 by 2022 for com- panies with more than 25 employees, and by 2023 for smaller businesses. In New York, the wage increase will start in 2019 in New York City for companies with at least 11 workers, and the following year for other com- panies. Businesses in the suburbs will have to start paying $15 an hour by 2022; in upstate New York, the hourly m i n i m u m w age w i l l i n c rea s e to $12.50 in five years, and then continue increasing until it reaches $15. With millions of workers in Cali- fornia and New York , these states' increases will obviously affect many employers. According to the " Wall Street Journal," 53.6 mi l lion U.S. workers received less than $15 an hour in 2015. How e v e r, n o t e v e r y s t ate h a s bought into the idea that a rising min- imum wage will help the economy. North Carolina recently passed a law that limits how local governments across the state can raise the minimum wage. Similarly, aer the Birmingham City Council raised the city 's min- imum wage to $10.10, in Februar y, Alabama lawmakers passed a law to ban local governments from estab- lishing local minimum wages. Equal pay enforcement A long w ith minimum wage law s, states have also been developing or Richard D. Alaniz is senior partner at Alaniz Schraeder Linker Farris Mayes, L.L.P., a national labor and employment firm based in Houston. He has been at the foreont of labor and employment law for over thirty years, including stints with the U.S. Department of Labor and the National Labor Relations Board. Rick is a prolific writer on labor and employment law and conducts equent seminars to client companies and trade associations across the country. Questions about this article, or requests to subscribe to receive Rick's monthly articles, can be addressed to Rick at (281) 833-2200 or ralaniz@ alaniz-schraeder.com . E lection years oen bring a flurry of legislative and regulatory activity that could significantly impact employers. And, as we mentioned in the first part of this two-part series, this election cycle is no different, as President Barack Obama prepares to exit office and Republicans gear up to try to take control of the White House while maintaining con- trol of Congress. 16 September 2016 • www.CPAPracticeAdv acticeAdv www.CPAPracticeAdv isor.com