Restaurant Law Blog

Thursday, January 9, 2014

Minimum Wage Increases Effective December 31, 2013

With the start of the New Year, business owners are facing big changes as the minimum wage increase takes effect. Effective December 31, 2013, the minimum wage is now $8.00 per hour up from $7.25. The minimum wage will continue to increase over the next two years, going up to $8.75 in 2015, and then up to $9.00 per hour in 2016.

In addition to changes in the minimum wage, restaurant owners will be affected by changes in tip credits, overtime rates, meal allowances, and uniform allowances.

Since the tip credit has increased to $3.00 per hour, the minimum wage for tipped employees remains $5.00 per hour. However, overtime rates for tipped employees, uniform maintenance allowance, and meal credits have increased.

As minimum wage increases, so too does the overtime rates for restaurant servers.  The new rate will now be $9.00 per hour, determined by the following calculation: $8.00 (minimum wage) x 1.5 - $3.00 (tip credit).

The uniform allowance has also increased to $9.95 per week for those working over 30 hours per week; $7.85 for those working 20-30 hours; and $4.75 for those working under 20 hours.

If you have questions about your restaurant’s compliance with these recent changes, contact DiPasquale Law Group for a free consultation.


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