Minimum wage laws are often a rude awakening for startups that would prefer to pay employees solely with equity. Always be mindful of minimum wage laws for both exempt and nonexempt employees to ensure compliance with current legal thresholds. Set forth below are rates at the federal level, and for the states and localities that exceed federal levels for the most common job categories that are changing in 2012.
The following minimum compensation rates are effective as of January 1, 2012: |
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| JURISDICTION | EXEMPTION | MINIMUM COMPENSATION |
| FEDERAL | Nonexempt | $7.25/hour |
| Executive | $455/week on salary basis | |
| Professional or Administrative | $455/week on salary or fee basis | |
| Computer | $27.63/hour | |
| Highly Compensated | $100,000 total compensation (including minimum $455 minimum weekly salary or fee) | |
| Licensed practicing Medical Doctor or Attorney; Teacher | None | |
| Business Owner (20% minimum equity and engaged in management) | None | |
| Outside Sales | None | |
| In the following jurisdictions, rates higher than the federal rates prevail. | ||
| ALASKA | Nonexempt | $7.75/hour |
| ARIZONA | Nonexempt | $7.65/hour (increase from 2011) |
| CALIFORNIA | Nonexempt | $8.00/hour $10.24/hour (San Francisco)(increase from 2011) |
| Executive, Professional or Administrative | $2,773.33/month on salary basis | |
| Computer | $38.89/hour, $6,752.19/month or $81,026.25/year (increase from 2011) | |
| Licensed Physician | $70.86/hour (increase from 2011) | |
| COLORADO | Nonexempt | $7.64/hour (increase from 2011) |
| CONNECTICUT | Nonexempt | $8.25/hour |
| FLORIDA | Nonexempt | $7.67/hour (increase from 2011) |
| ILLINOIS | Nonexempt | $8.25/hour |
| MAINE | Nonexempt | $7.50/hour |
| MASSACHUSETTS | Nonexempt | $8.00/hour |
| MICHIGAN | Nonexempt | $7.40/hour |
| MONTANA | Nonexempt | $7.65/hour (increase from 2011) |
| NEVADA | Nonexempt | $7.25/hour (if qualifying health benefits available) $8.25/hour (all others) |
| NEW MEXICO | Nonexempt | $7.50/hour |
| NEW YORK | Nonexempt | $7.25/hour |
| OHIO | Nonexempt | $7.70/hour (increase from 2011) |
| OREGON | Nonexempt | $8.80/hour (increase from 2011) |
| RHODE ISLAND | Nonexempt | $7.40/hour |
| VERMONT | Nonexempt | $8.46/hour (increase from 2011) |
| WASHINGTON, DC | Nonexempt | $8.25/hour |
| WASHINGTON STATE |
Nonexempt | $9.04/hour (increase from 2011) |
| Outside Sales Exemption | guaranteed salary, commission, or fee | |
Special thanks to the Cooley employment group for this release.
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