2014 Minimum Wage History

Minimum Wage Changes: Federal and State Labor Law History

Minimum wage laws have been an important part of employment policy in the United States for decades. Federal, state, and local governments establish wage requirements that can affect employers, employees, payroll practices, and workplace posting obligations.

During 2014, lawmakers across the country debated proposals to increase minimum wages. Some states adopted scheduled wage increases, while others established systems for adjusting minimum wages based on inflation or changes in the cost of living.

This article reviews those historical developments and explains why employers must continue monitoring applicable minimum wage and workplace posting requirements.

The Federal Minimum Wage Debate in 2014

In 2014, the federal minimum wage was $7.25 per hour, and Congress considered legislation that would have increased the rate to $10.10 per hour over several years.

On April 30, 2014, a proposal to advance federal minimum wage legislation failed to receive sufficient support in the U.S. Senate.

The proposed legislation also included provisions for future adjustments tied to inflation.

Although the proposal did not become law, it reflected growing national attention to wage levels, purchasing power, and the relationship between federal and state minimum wage requirements.

Federal Contractor Minimum Wage Developments

In February 2014, President Barack Obama signed Executive Order 13658, establishing a minimum wage requirement for workers performing on or in connection with certain covered federal contracts.

The order established an initial minimum wage of $10.10 per hour beginning January 1, 2015, with provisions for subsequent adjustments.

Federal contractor minimum wage requirements have changed through additional executive orders, regulatory actions, and court decisions.

Employers performing federal contracts should review current Department of Labor guidance and applicable contract provisions rather than relying on historical contractor wage rates.

States That Considered or Adopted Minimum Wage Increases in 2014

During 2014, several states and the District of Columbia enacted or considered legislation to increase their minimum wage rates.

States discussed in the original 2014 reporting included:

• California
• Connecticut
• Delaware
• District of Columbia
• Hawaii
• Maryland
• Minnesota
• West Virginia

These states followed different legislative schedules and approaches to minimum wage changes.

Historical wage proposals and implementation dates should not be used to determine current payroll obligations.

States That Use Inflation-Based Minimum Wage Adjustments

Some states have adopted minimum wage systems that include periodic adjustments based on inflation, the Consumer Price Index, or other statutory formulas.

States historically associated with automatic or formula-based minimum wage adjustments include:

• Arizona
• Colorado
• Florida
• Missouri
• Montana
• Nevada
• New Jersey
• Ohio
• Oregon
• Vermont
• Washington

Adjustment mechanisms can change through legislation or voter-approved measures. Employers should verify the current minimum wage and adjustment rules for each state where they operate.

How Federal and State Minimum Wage Laws Work Together

The federal Fair Labor Standards Act establishes a minimum wage for covered, nonexempt employees.

States and local governments may establish minimum wage rates that exceed the federal requirement.

When employees are covered by both federal and state minimum wage laws, employers generally must comply with the requirement that provides the higher applicable wage.

Additional rules may apply to tipped employees, certain younger workers, specific industries, and other employment arrangements.

City and Local Minimum Wage Requirements

Minimum wage compliance is not always limited to federal and state laws.

Some cities and counties establish local minimum wage ordinances that exceed statewide requirements.

Employers operating in multiple jurisdictions should review the wage rules and workplace notices applicable to each location.

Labor Law Compliance Center provides State and Federal Combination Labor Law Posters and additional city and local workplace posting products.

How Minimum Wage Changes Affect Labor Law Posters

Minimum wage changes may require employers to update workplace notices when the applicable government agency revises its required minimum wage poster.

However, not every wage adjustment automatically requires replacement of every workplace poster.

Employers should review official agency guidance to determine whether a revised notice is required and when it must be displayed.

Why Employers Should Monitor Minimum Wage Updates

Minimum wage changes can affect several areas of business operations, including:

• Employee payroll and wage calculations.
• Overtime calculations where applicable.
• Tipped employee compensation.
• Employment policies and payroll systems.
• Workplace posting requirements.
• Multi-state and multi-location compliance.

Businesses operating across multiple states should maintain a process for monitoring applicable wage requirements and required workplace notice revisions.

Frequently Asked Questions About Minimum Wage Changes

Does every state have the same minimum wage?

No. States may establish minimum wage requirements that differ from the federal rate. Some cities and counties also establish local minimum wage ordinances.

Which minimum wage applies when state and federal rates differ?

When an employee is covered by both federal and state minimum wage laws, the employer generally must comply with the higher applicable minimum wage.

Do minimum wage rates increase every year?

Not necessarily. Some jurisdictions provide for annual adjustments, while others require legislative or other government action before rates change.

Do employers need new labor law posters after a minimum wage increase?

Employers should determine whether the applicable agency has issued a revised mandatory notice. A minimum wage increase does not necessarily require replacing every workplace poster.

Where can employers find official minimum wage information?

Employers can consult the U.S. Department of Labor Wage and Hour Division and the applicable state or local labor agency.

Labor Law Posters and Minimum Wage Compliance

Labor Law Compliance Center helps employers locate workplace notices and manage applicable posting requirements across the United States.

Browse our State and Federal Combination Labor Law Posters or explore our Poster Replacement Plan for assistance with qualifying workplace posting revisions.

For additional workplace posting information, visit the Labor Law Compliance Center homepage.

Compliance note: This article discusses historical minimum wage developments beginning in 2014. It does not provide current wage rates. Employers should consult official federal, state, and local sources to determine applicable minimum wage and posting requirements.