KMA Compliance Alert: Salary and Minimum Wage Increases Effective January 1, 2020

As we start the new year, federal and state changes will take effect and mean new minimum wage and salary increases for 2020.

  • On the federal level, an overtime rule mandates that employees exempt from overtime under the Fair Labor Standards Act (FLSA) be paid a minimum of $684 per week, equivalent to an annual amount of $35,568.
  • In Maine, the minimum exempt salary will be higher as it is tied to minimum wage increases. With the minimum wage increasing to $12 per hour in Maine effective January 1, 2020, the minimum salary paid to FLSA exempt employees must exceed $692.31 per week, or $36,000 annually.
  • In Massachusetts, the minimum wage will increase to $12.75 effective January 1, 2020. New Hampshire’s minimum wage remains unchanged at $7.25.

This is a great time to look at employee compensation to ensure proper payment, especially for those paid on a salaried basis. In addition to the requirement to pay a set minimum salary, exempt employees also need to meet the duties tests for each particular exemption under the FLSA.

Looking for Guidance and Support?

If you need help with employee compensation or other HR issues, contact KMA today.

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