As always, to make sure your business is prepared and stays in compliance, we recommend that you discuss these upcoming changes to minimum wage laws in Mississippi with your accountant and lawyer. This article does not constitute legal advice.
Depending on where you live or work, the minimum wage can vary greatly—and it’s on the rise in most places.
If you’re a Mississippi small business owner, you may be wondering what’s next for the minimum wage in your state.
We’ve got you covered on what’s happening next in Mississippi, and what you need to do to be prepared.
What is the minimum wage in Mississippi?
The state of Mississippi doesn’t have a minimum wage, so the federal minimum wage governs what workers are paid unless you’re exempt from the minimum wage under federal law.The current federal minimum wage is $7.25 an hour. That equates to about $15,000 a year.
Will Mississippi’s minimum wage change in 2019?
Since Mississippi has no state minimum wage, the state defaults to what the federal government does.
In 2017, a bill was proposed to enact a state minimum wage and increase it to $10 an hour, but the bill failed.
Are there plans to change the minimum wage beyond 2019?
There are no formal plans to increase the minimum wage in Mississippi, so they will default to what the federal government’s plans are.
The Federal minimum wage has been $7.25 since 2009, and there’s been plenty of discussion about raising it to $15.
The House of Representatives passed a bill in July 2019 to gradually increase the federal minimum wage to $15 an hour.
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How should small business owners prepare for changes to the minimum wage?
While there are no formal plans for the Mississippi or federal minimum wage to change in the near future, it’s always good to be prepared in case of a sudden wage increase.
You’ll want to audit your business and see how you’re spending. Then, think about how you could cut costs and save money for future wage hikes.
Investing in technology that can help your businesses’ efficiency and save you money in labor costs. Automating payroll is one option.
You’ll also want to focus on minimizing staff turnover, since training new staff can get expensive. Hiring the right people and successfully onboarding them is important. Also, think of ways to retrain your staff to ensure performance is high and staff members feel equipped with the skills to do their job.
To protect your business and pay your employees fairly, find an accountant who is familiar with your local laws and can help guide you on what’s required where your business and employees are.