Minimum Wage Increases for 2017

With the start of the new year, the minimum wage has increased in 19 states (along with a few increases scheduled for later in the year). The federal minimum wage remains at $7.25; this is the lowest hourly amount that employers can pay employees in the United States. However, if a state has a higher minimum wage, the employer must pay the higher amount. Likewise, if a city or county has a higher minimum wage than the federal or state rate, the employer must pay the higher amount.

As of January 1, 2017, the minimum wage increased to the following amounts:

  • Alaska: $9.80
  • Arizona: $10
  • Arkansas: $8.50
  • California: $10 (employers with up to 25 employees) and $10.50 (employers with 26 or more employees)
  • Colorado: $9.30
  • Connecticut: $10.10
  • Florida: $8.10
  • Hawaii: $9.25
  • Maine: $9
  • Massachusetts: $11
  • Michigan: $8.90
  • Missouri: $7.70
  • Montana: $8.15
  • New Jersey: $8.44
  • New York: $9.70
  • Ohio: $8.15
  • South Dakota: $8.65
  • Vermont: $10
  • Washington: $11

On July 1, 2017, the minimum wage will increase in the following states:

  • Maryland: $9.25
  • Oregon: $10.25

On December 31, 2017, the minimum wage will increase in the following state:

  • New York: $10.40

Employers and employees should check with their city or county to find out if there is a local minimum wage. For more information about the rules in your state, see Your Right to Minimum Wage.

Losing the Home Office Space Means Losing the Tax Deduction, Too

Overtime2A recent article in Bloomberg reported that dedicated space for a home office is “less of a selling point” than it once was for home sellers. It’s appearing less often in real estate ads and marketing, and new-home developers are shifting toward open-floor plans containing flexible spaces, workspace nooks, and lots of handy electrical outlets.

That’s all very well as a reflection of how modern connectivity allows many people to work from their sofa, in their pajamas, or at just about any time and place in their home. But if you’re operating some sort of business principally from your home, it’s worth also considering what you might lose out on when tax time rolls around if you don’t have a dedicated home office space.

The home office tax deduction lets people who meet various legal requirements deduct a percentage of their home-related costs, such as utilities, rent, insurance, depreciation, mortgage interest, real estate taxes, and certain casualty losses, repairs, and improvements.

But here’s the key thing to remember: the deduction applies only if you regularly use part of your home exclusively for your trade or business. The IRS can be a stickler on this point–if, for instance, your office is also the family TV room, an auditor who notices that might not allow the deduction.

Any shared use of a room or equipment can be problematic. So if it gets to the point where you can’t point to ANY part of your home that’s solely used to run your business, say bye bye to the deduction.

Check out Nolo’s articles on Home Deductions for more on the exact rules and benefits of the home office tax deduction.

 

Keep Your Eyes on the Road: 2017 Brings New Cellphone Restrictions for California Drivers

Existing California law restricts motorists from talking on a cellphone or texting while driving, except when using a device in voice-operated, hands-free mode. The current text messaging restriction applies to writing, sending, and reading texts on a cellphone or other wireless device while driving. The law doesn’t, however, address other uses of cellphones and wireless devices. So common smartphone and tablet features like internet browsers and GPS—which don’t involve text messaging—aren’t covered. (Cal. Veh. Code §§ 23123, 23123.5, 23124 (2016).)

Realizing the deficienciesroad-people-street-smartphone in the current law, the California Legislature passed legislation (Assembly Bill 1785, “A.B. 1785”) this past year to fill the gap. The new law will prohibit California motorists from “holding and operating” any cellphone or wireless device while driving. By using this broad wording, the Legislature presumably intended to restrict motorists from doing anything on their devices that could be a distraction. Several exceptions apply to the new rule, one of which permits drivers to turn on or off a mounted GPS, so long as it requires only one tap or swipe to do so. Manufacturer-installed systems that are embedded in the vehicle are also exempt. (Cal. Veh. Code § 23123.5 (version effective Jan. 1, 2017).)

(Read more about California’s distracted driving laws and the penalties for a violation.)

Holiday Season Great for Home Deals—If You Can Cope With the Downsides

holiday lightsA recent, informal survey by the National Association of Exclusive Buyer Agents (NAEBA) asked its members—real estate brokerages that only represent home buyers—to report in on the challenges of shopping for a home during the holiday season.

The responses are in most cases either entertaining—“Aftermath of a New Year’s Eve party including passed out guests complete with open and spilled adult beverages”—or daunting—“Sellers reluctant to show because house is a wreck or too much company in house” and “difficulties in meeting deadlines when financial institutions or other offices are closed or industry personnel (loan officer, inspector, etc.) take time off.”

Difficulties aside, however, the NAEBA agents noted a silver lining to home shopping while everyone else is gift shopping: “Since we know anyone whose home is on the market during the holidays is highly motivated, we can be more aggressive in offering price and terms of the contract.”

Translated, that means that no seller in their right mind would put a home on the market during this cold, dreary, and distracted time of year—and therefore anyone who does so probably has a pressing reason.

Divorce, job change, or other change in life circumstances might be among the reasons. The seller basically needs to move, and move now.

That puts the prospective home buyer in a strong negotiating position. For help, see Nolo’s articles on Buying a House or Property.  Just step carefully on those frozen front steps, and don’t close the purchase until you have a chance to persuade a home inspector to put down the eggnog and come check the roof for leaks.

How Many Green Cards Were Misdelivered?!

green cardThe title of the recent report from the U.S. Office of the Inspector General says it all: “Better Safeguards Are Needed in USCIS Green Card Issuance.”

According to the OIG’s findings, U.S. Citizenship and Immigration Services (USCIS) “continues to struggle to ensure proper Green Card issuance.”

Among other problems over the last three years, USCIS made mistakes on, or produced duplicate versions of, at least 19,000 cards. What’s more, the agency received over 200,000 reports from approved applicants saying that their cards went missing before they got them–in many cases, because the cards were sent to the wrong address.

The latter problem isn’t always USCIS’s fault. However, the OIG found that the number of misdelivered green cards could be reduced if the process for updating one’s address with USCIS were easier.

Do these problems affect only the immigrants awaiting a valid green card? Not if you’re, say, an employer waiting to hire a recent immigrant, or a concerned citizen wondering about whose house that misdirected green card actually went to!

If you are an immigrant and USCIS made an error on your green card, see Mistake on Your Green Card: Who Pays the Replacement Fee? for tips on getting a free replacement. And if you’re awaiting your green card, and plan to move, be sure to either submit your change of address online, call USCIS’s customer service number, 800-375-5283, or complete Form AR-11 (available at www.uscis.gov/ar-11) and mail it to the address listed on the form.