ID H0400

Establishes minimum wage of $8.725 per hour effective July 1, 2016, and $9.25 per hour effective July 1, 2017, replacing the previous rate tied to federal minimum wage.

Implements automatic annual adjustments to minimum wage beginning September 30, 2018, calculated by the director of commerce based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the period July 1 to June 30, with adjustments taking effect January 1 each year.

Sets tipped employee minimum direct wage at $3.3580 per hour effective July 1, 2016, and $4.25 per hour effective July 1, 2017, requiring employers to make up the difference if tips plus direct wages do not equal the full minimum wage.

Allows employers to pay employees under 20 years of age $4.2570 per hour effective July 1, 2016, and $5.35 per hour effective July 1, 2017, during the first 30 consecutive calendar days of employment, after which the full minimum wage applies.

Prohibits employers from displacing existing employees, including through hour or benefit reductions, for the purpose of hiring new workers at the lower youth wage rate.