April 06, 2014

On Tuesday, April 1, Gov. Earl Ray Tomblin signed House Bill 4283, the minimum wage bill. The bill will raise the current $7.25 an hour to $8.00 on January 1, 2015 and to $8.75 in 2016. HOWEVER, the overtime compensation and maximum hours aspects of the Act will be addressed during the May interims, which is scheduled for May 19, 2014. Please read the section at the bottom if your company is also a Federal Contractor. While you should begin planning and budgeting for the increases in the minimum wage, we advise waiting to be concerned about the overtime provisions until after the interim session. For many companies, this minimum wage increase will involve dealing with compression issues. Raising the minimum wage will have an effect on the pay scales for experienced employees as the “ripple effect” occurs, requiring a new approach to compensation. We will share additional information as it becomes available. See below for the governor’s quote: "I'm aware there may be some unintended consequences relating to overtime compensation and maximum hours worker, which give me great pause," Tomblin said in a press release Tuesday evening. "I will call the Legislature into extraordinary session during the May interims, beginning May 19, 2014 to address the issues of great concern to businesses large and small – including the fiscal challenges expected to affect our local governments.”