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The Washington State Department of Labor & Industries announced recently that pursuant to Initiative 688, the minimum wage for the state of Washington would increase from $8.67 to $9.04 per hour effective January 1, 2012. The law requires an adjustment to the minimum wage be calculated each year.

Adjustment Is Tied to Changes in CPI-W

The adjustment is tied to the change in the federal Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the 12 months ending in August. The 4.258% increase in the CPI-W will result in an increase of $0.37 for 2011.

Washington Maintains Highest Minimum Wage in the Country

Washington has the highest minimum wage in the country, followed by Oregon. Oregon recently announced that its minimum wage would rise $0.30 to $8.80 an hour in 2012.

Find Out the Minimum Wage for All States by Visiting the Vision Payroll Minimum Wage Chart Page

Contact Vision Payroll if you have any questions on the Washington minimum wage increase or visit our Minimum Wage Chart.

The Ohio Department of Commerce announced recently that, effective January 1, 2012, the minimum wage for the state of Ohio will increase to $7.70 per hour for non-tipped employees and $3.85 for tipped employees.

Minimum Wage Applies to Employers That Gross More than $283,000 per Year

Effective January 1, 2012, the minimum wage will apply to employers who gross more than $283,000 per year, up from $271,000 in 2011.

Annual Adjustment Is Constitutionally Required

As a result of a constitutional amendment that passed in 2006 an adjustment to the minimum wage must be applied on January 1 of each year. The adjustment is tied to the Consumer Price Index (CPI) for urban wage earners and clerical workers for the 12-month period prior to September. The 1.4% increase in the CPI is rounded to the nearest five cents to calculate the amount of the adjustment.

Find Out the Minimum Wage for All States by Visiting the Vision Payroll Minimum Wage Chart Page

Contact Vision Payroll if you have any questions on the Ohio minimum wage increase or visit our Minimum Wage Chart.

Nonfarm payroll employment edged up by 103,000 in September, and the unemployment rate held at 9.1%, the US Bureau of Labor Statistics reported today. The increase in employment partially reflected the return to payrolls of about 45,000 telecommunications workers who had been on strike in August. In September, job gains occurred in professional and business services, health care, and construction. Government employment continued to trend down.

Household Survey Data

The number of unemployed persons, at 14.0 million, was essentially unchanged in September, and the unemployment rate was 9.1%. Since April, the rate has held in a narrow range from 9.0 to 9.2%

Among the major worker groups, the unemployment rates for adult men (8.8%), adult women (8.1%), teenagers (24.6%), whites (8.0%), blacks (16.0%), and Hispanics (11.3%) showed little or no change in September. The jobless rate for Asians was 7.8%, not seasonally adjusted.

The number of long-term unemployed (those jobless for 27 weeks and over) was 6.2 million in September. These individuals accounted for 44.6% of the unemployed.

Both the labor force and employment increased in September. However, the civilian labor force participation rate, at 64.2%, and the employment-population ratio, at 58.3%, were little changed.

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) rose to 9.3 million in September. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.

In September, about 2.5 million persons were marginally attached to the labor force, about the same as a year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.

Among the marginally attached, there were 1.0 million discouraged workers in September, down by 172,000 from a year earlier. (The data are not seasonally adjusted.) Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.5 million persons marginally attached to the labor force in September had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities.

Establishment Survey Data

Total nonfarm payroll employment edged up by 103,000 in September. Since April, payroll employment has increased by an average of 72,000 per month, compared with an average of 161,000 for the prior 7 months. In September, job gains occurred in professional and business services, health care, and construction. Government employment continued to trend down.

Employment in professional and business services increased by 48,000 over the month and has grown by 897,000 since a recent low in September 2009. Employment in temporary help services edged up in September; this industry has added 53,000 jobs over the past 3 months. In September, employment growth continued in computer systems design and in management and technical consulting services.

Health care employment continued to expand in September, with an increase of 44,000. Within the industry, job gains occurred in ambulatory health care services (+26,000) and in hospitals (+13,000).

Construction employment increased by 26,000 over the month, after showing little movement since February. The over-the-month gain was due to employment increases in the nonresidential construction industries, which includes heavy and civil construction. Mining employment continued to trend up in September.

Employment in information was up by 34,000 over the month due to the return of about 45,000 telecommunications workers to payrolls after an August strike.

Manufacturing employment changed little in September (-13,000) and has been essentially flat for the past 2 months.

Within retail trade, employment declined in electronic and appliance stores (-9,000) in September. Employment in wholesale trade, transportation and warehousing, financial activities, and leisure and hospitality changed little.

Government employment continued to trend down over the month (-34,000). The U.S. Postal Service continued to lose jobs (-5,000). Local government employment declined by 35,000 and has fallen by 535,000 since September 2008.

The average workweek for all employees on private nonfarm payrolls edged up by 0.1 hour over the month to 34.3 hours following a decrease of 0.1 hour in August. The manufacturing workweek edged down by 0.1 hour in September to 40.2 hours. Factory overtime increased by 0.1 hour to 3.2 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls edged up by 0.1 hour to 33.6 hours in September.

In September, average hourly earnings for all employees on private nonfarm payrolls increased by 4 cents, or 0.2%, to $23.12. This increase followed a decline of 4 cents in August. Over the past 12 months, average hourly earnings have increased by 1.9%. In September, average hourly earnings of private-sector production and nonsupervisory employees increased by 3 cents, or 0.2%, to $19.52.

The change in total nonfarm payroll employment for July was revised from +85,000 to +127,000, and the change for August was revised from 0 to +57,000.

According to the US Department of Labor, in the week ending October 1, the advance figure for seasonally adjusted initial claims was 401,000, an increase of 6,000 from the previous week’s revised figure of 395,000. The 4-week moving average was 414,000, a decrease of 4,000 from the previous week’s revised average of 418,000.

Advance Seasonally Adjusted Insured Unemployment Rate Decreases

The advance seasonally adjusted insured unemployment rate was 2.9% for the week ending September 24, a decrease of 0.1 percentage points from the prior week’s unrevised rate.

Advance Seasonally Adjusted Insured Unemployment Decreases

The advance number for seasonally adjusted insured unemployment during the week ending September 24 was 3,700,000, a decrease of 52,000 from the preceding week’s revised level of 3,752,000. The 4-week moving average was 3,739,000, a decrease of 9,750 from the preceding week’s revised average of 3,748,750.

The National Labor Relations Board (NLRB) issued a final rule requiring most private-sector employers to notify employees of their rights under the National Labor Relations Act (NLRA). The NLRB will require employers to post a new NLRA notice in the workplace. The posting requirement, originally was to be effective November 14, 2011, but has been extended to January 31, 2012.

Learn Who Is and Isn’t Covered and More

Not all employers are covered by the new mandate, including federal and state governments and labor unions. Employers who are covered must be sure to post in a conspicuous area. Additional requirements may apply to workplaces with large numbers of employees who don’t speak English. An electronic posting of the notice may also be required.

Learn More About the New NLRB Notice Requirement

To get more details about the new NLRB notice requirement, be sure to read the featured article by the HR pros at MyHRSupportCenter, New NLRB Notice Requirement Puts Businesses Nationwide on Notice. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

Be Protected Against Claims of Unfair Labor Practices

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Brad Avakian, Commissioner of the Oregon Bureau of Labor and Industries, announced recently that, effective January 1, 2012, the minimum wage for the state of Oregon will increase to $8.80 per hour.

Measure 25 Mandates Annual Adjustments

As a result of Measure 25, which passed in 2002, an adjustment to the minimum wage must be calculated no later than September 30 of each year. The adjustment is based on any increase in the US City Average Consumer Price Index for All Urban Consumers for All Items (CPI). The 3.37% increase in the CPI will result in a comparable change in the minimum wage.

Find Out the Minimum Wage for All States by Visiting the Vision Payroll Minimum Wage Chart Page

Contact Vision Payroll if you have any questions on the Oregon minimum wage or visit our Minimum Wage Chart.

The Massachusetts Division of Occupational Safety (DOS) issues prevailing wage schedules to cities, towns, counties, districts, authorities, and agencies of the Commonwealth for construction projects and several other types of public work. These prevailing wage schedules contain hourly wage rates that workers must receive when working on a public project.

DOS Recently Released PW-2011-01-01.06.11 on Prevailing Wages

The DOS regularly issues Prevailing Wage Opinion Letters and recently released PW-2011-01-01.06.11. This letter confirms “the duration of wage rates issued for contracts between school districts and school bus companies.”

DOS Provides Analysis of Relevant Massachusetts Law

According to the DOS, the relevant law is contained in MGL c 71, §7A. “§7A provides, in relevant part, that: ‘no contract [for the transportation of pupils] shall be awarded except upon the basis of prevailing wage rates…’ §7A further provides that ‘[P]rior to awarding a contract, the school committee…shall request the commissioner…to determine the rate of wages to be paid to each person to be employed by the bidder under said contract, and shall forward to the commissioner a list of jobs to be performed under the contract.’ Because the statute specifies that a list of all jobs shall be provided to the commissioner and included in the prevailing wage schedule, those words should be given full effect by the commissioner in applying the statute. Accordingly, the plain language of the statute directs the commissioner to set wage rates for the bus driver and any other personnel that the bidder is required to provide under the contract.”

The DOS Interprets the Phrase “Contract Term”

According to the DOS, it “interprets the phrase ‘contract term’ with respect to the plain language meaning of the term. Accordingly, if the original term of a school bus contract is, for e.g., three years, then the wage rates contained on the wage schedule for the contract are applicable to that three year term. Any extension of the original term would therefore trigger the requirement to obtain updated wage rates. This is consistent with the way awarding authorities treat renewals/options to renew.”

Vision Payroll Assists Employers Preparing Certified Weekly Payroll Reports

Vision Payroll is ready to assist employers in gathering information for certified weekly payroll reports. Vision Payroll can also prepare the certified weekly payroll reports for submission to the proper authorities. Contact Vision Payroll today to get started.

The New England unemployment rate was essentially unchanged at 7.8% in August, the US Bureau of Labor Statistics reported recently. Regional Commissioner Denis M. McSweeney noted that the over-the-year change in New England’s unemployment rate was not statistically significant. The national jobless rate was unchanged at 9.1%, but was 0.5 percentage point lower than a year earlier.

Pacific Division Continues to Report Highest Rate

New England is one of nine geographic divisions nationwide. Among the nine divisions, the Pacific continued to report the highest unemployment rate, 11.2% in August. The West North Central again registered the lowest rate, 6.9%. Over the month, the East North Central was the only division to experience a statistically significant unemployment rate change (+0.2 percentage point). The East North Central also recorded the only significant rate change among divisions over the year (-0.6 percentage point).

Four New England States Have Significantly Lower Rates than Rest of Nation

In August, five of the six New England states posted jobless rates that were significantly different from that of the United States. New Hampshire (5.3%), Vermont (5.9%), Massachusetts (7.4%), and Maine (7.6%) recorded lower-than-average unemployment rates and were among 25 states in the country to do so. In fact, New Hampshire reported the fourth-lowest jobless rate nationwide. In contrast, Rhode Island (10.6%) had the highest jobless rate among the New England states and was among eight states and the District of Columbia with rates significantly higher than the national average. Connecticut was among the 17 remaining states that registered unemployment rates that were not appreciably different from that of the nation.

No New England State Had a Significant Rate Increase in August

In August, seven states and the District of Columbia posted statistically significant rate increases from July. The six New England states were among the 43 remaining states that registered jobless rates that were not measurably different from those of a month earlier, though some had changes that were at least as large numerically as the significant changes.

Most States Had Minimal Change over the Last Year

Over the year, five states recorded statistically significant unemployment decreases. The District of Columbia posted the only significant rate increase from a year earlier (+1.3 percentage points). The six New England states were among the 45 states that registered jobless rates not appreciably different from those of a year earlier.

The Employment Security Division of the Nevada Department of Employment, Training and Rehabilitation has announced an decrease in the taxable wage base for 2012.

Wage Base Decreases for Second Consecutive Year

The wage base will decrease from $26,600 for 2011 to $26,400 for 2012. This will be the second straight year that Nevada has reduced the taxable wage base.

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on Nevada unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

This week’s question comes from Steve, a small business owner.

Steve asks:

I’ve read about the Voluntary Classification Settlement Program (VCSP) and its application process with the Internal Revenue Service (IRS). What are the IRS and Department of Labor (DOL) doing about workers who receive 1099s?

Answer: The IRS and DOL are entering into agreements that include the IRS and DOL as well as several states to share information and coordinate enforcement of current laws and regulations.

Memoranda Signed at Washington Ceremony

Secretary of Labor Hilda L. Solis recently hosted a ceremony at DOL headquarters in Washington to sign a memorandum of understanding with the IRS that will improve departmental efforts to end the business practice of misclassifying employees in order to avoid providing employment protections. In addition, labor commissioners and other agency leaders representing seven states signed memoranda of understanding with the department’s Wage and Hour Division (WHD) and, in some cases, its Employee Benefits Security Administration, Occupational Safety and Health Administration, Office of Federal Contract Compliance Programs and Office of the Solicitor. The signatory states are Connecticut, Maryland, Massachusetts, Minnesota, Missouri, Utah and Washington. Secretary Solis also announced agreements for the WHD to enter into memoranda of understanding with the state labor agencies of Hawaii, Illinois and Montana, as well as with New York’s attorney general.

DOL and IRS Will Share Information with Participating States

The memoranda of understanding will enable the DOL to share information and coordinate law enforcement with the IRS and participating states in order to level the playing field for law-abiding employers and ensure that employees receive the protections to which they are entitled under federal and state law.

Secretary Solis: We’re Standing United to End the Practice of Misclassifying Employees

“We’re here today to sign a series of agreements that together send a coordinated message: We’re standing united to end the practice of misclassifying employees,” said Secretary Solis. “We are taking important steps toward making sure that the American dream is still available for all employees and responsible employers alike.”

Commissioner Shulman: We Will Work Together More Efficiently to Address Worker Misclassification Issues

“This agreement takes the partnership between the IRS and DOL to a new level,” said IRS Commissioner Doug Shulman. “In this new phase of our relationship, we will work together more efficiently to address worker misclassification issues, and better serve the needs of small businesses and employees.”

Misclassification Can Create Economic Pressure for Law-Abiding Business Owners

Business models that attempt to change, obscure or eliminate the employment relationship are not inherently illegal, unless they are used to evade compliance with federal labor laws — for example, if an employee is misclassified as an independent contractor and subsequently denied rights and benefits to which he or she is entitled under the law. In addition, misclassification can create economic pressure for law-abiding business owners.

Memoranda Arose as Part of the Misclassification Initiative

These memoranda of understanding arose as part of the department’s Misclassification Initiative, which was launched under the auspices of Vice President Biden’s Middle Class Task Force with the goal of preventing, detecting and remedying employee misclassification.

Contact Vision Payroll Today

Contact Vision Payroll if you have further questions on the memoranda of understanding.