Here are a few things your company should consider when navigating the complex minimum-wage landscape.

Constantly monitor for changes. Employers need to keep up with changes at the local and state level, paying close attention to when they take effect and which employees they apply to. It's best to keep an eye on various information sources including news outlets, relevant websites and updates from law firms, HR solution providers, and professional associations such as the American Payroll Association.

Communicate changes and update processes. Once you're aware of changes going into effect, consider how they'll impact your workforce and employee morale. If some employees are receiving increases and others are not, tell your employees that the changes are due to the law and not to employee performance. Further, be sure managers and employees are notified; particularly in jurisdictions where required pay notices need to be updated and provided to employees to ensure compliance. Next, update your systems and processes to make sure the new wage rate gets paid accurately.

Pay attention to record-keeping and reporting. Under the FLSA, each employer must keep certain records for each employee. While generally there is no required form, records must include accurate information about each employee and data about specific hours worked and wages earned. The specific wage data needed includes the basis on which employee wages are paid, the regular hourly pay rate, total daily or weekly straight-time earnings, total overtime earnings for the work week, additions to or deductions from wages, total wages paid each pay period and date of payment along with the pay period covered. Remember that additional requirements may apply under individual state and local laws.

Consider the difference in rates for federal contractors. One area where the federal minimum wage has increased recently relates to federal contractors. Their wages can be raised using an executive order in lieu of a bill being sent through Congress and then signed by the president. Several years ago, President Obama signed an executive order that requires parties who contract with the federal government to pay workers performing work on or in connection with covered federal contracts a minimum wage higher than that of the general federal minimum wage rate. As of January 1, 2017, that rate is $10.20 per hour. Keep in mind that the executive order doesn't apply to certain types of contracts, such as those for services, and some state or local laws may provide greater worker protections.

Don't forget state overtime-exemption thresholds. Some states and cities, including New York City and California, have separate overtime exemption thresholds that apply in addition to the FLSA. For example, in California, computer software employees must be paid $41.85 to $42.35 per hour and licensed physicians and surgeons must be paid $76.24 to $77.15 per hour. If they don't make those amounts, they're entitled to overtime for any time worked over eight hours.

Know what minimum wage is pertinent to wage garnishment in your state. The federal Consumer Credit Protection Act (CCPA) sets the maximum amount that may be garnished for creditor garnishments in any workweek or pay period, regardless of the number of garnishment orders received by the employer. In states that adopt the CCPA standard for creditor garnishments (i.e., those not for support, bankruptcy, or any state or federal tax), the weekly amount garnished may not exceed the lesser of two figures: 25 percent of the employee's disposable earnings, or the amount by which an employee's disposable earnings are greater than 30 times the federal minimum wage (currently $7.25 an hour).

Some states regulate the limitations on creditor garnishment withholding based on the higher of the state or federal minimum wage. For example, Maine limits the amount subject to garnishment to the lesser of 25 percent of the individuals' disposable earnings for the week or the amount by which the individual's disposable earnings for the week exceed 40 times the federal minimum wage or 40 times the state minimum wage, whichever is higher.

Instant Insights /

The shifting landscape of minimum wage in the U.S.

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