What your company is paying independent contractors must meet the minimum wage requirements for your area. Not only is the federal minimum wage set to increase, but many states and cities have made increases already or are projected to make increases in 2022.
Keeping up with changes is a time-consuming and necessary part of doing business. At ClearPath Workforce Management, we can help you adapt to new regulations and keep your business running smoothly.
Get Ready for Minimum Wage Increases in 2022 That Will Impact Paying Your Independent Contractors
The COVID-19 crisis has substantially affected the economy and employers have struggled to find workers amid an ongoing labor shortage. One result has been an increase in wage requirements for minimum wage workers, including independent contractors. Minimum wage workers in twenty-four states across the country experienced a pay bump in mid-2021 and more states are projected to increase their minimum wage in 2022.
Federal Minimum Wage Changes
House and Senate Democrats have introduced the Raise the Wage Act of 2021 to progressively increase the federal minimum wage to $15/hour by 2025. The federally mandated minimum wage was last updated in 2009 to its current $7.25 per hour, but now businesses must stay on top of multiple incremental changes as they come into effect.
State and City Minimum Wage Changes
Many states and even some cities have minimum wage requirements above the federal level. Is your state or city’s minimum wage increasing again? If you employ workers, you should check to see if the minimum wage is going up in your area. Employers need to ensure they are following the appropriate ordinances to stay out of hot water.
ClearPath maintains a Minimum Wage Cheat Sheet with a complete listing of city/state minimum wage requirements, updated semi-annually, so you can stay current.
Want Help Staying Ahead of Minimum Wage Increases and Paying Your Independent Contractors?
Stop worrying about changing requirements and paying independent contractors by outsourcing your payroll to the experts. Make doing business easy, contact ClearPath today for your workforce management solutions.