Understanding Kansas Minimum Wage: Current Rates and Insights for 2024

The landscape of minimum wage laws can be challenging enough because the living costs for people increase daily. In Kansas, the minimum wage is always a significant topic of debate as it should match the cost of living because;

Living on minimum wage is like emptying a gallon jug with a teaspoon. It is slow, exhausting, and never enough.

In 2024, Kansa's minimum wage remains at the federal level of $7.25 per hour, and guess what? It has stayed the same since 2009. The state minimum wage law sets this rate. The discussion has fueled the need to afford necessities like housing, food, healthcare, and other mandatory expenses.

For instance, a worker earning a 40-hour week will take home around $290, excluding taxes. 

This hard-earned money comes to zero at the end of the month, considering mandatory expenses like taxes, medical bills, food, and other transportation expenses. With housing and food costs rising, this amount often falls short, leading many to work overtime or multiple jobs to meet their needs.

So, there is always one question: Does the Kansas minimum wage align with the cost of living?

In this blog, we'll explore how the Kansas minimum wage stacks up against the current cost of living, what the future may hold for minimum wage increases in the state, and the broader implications for workers and the economy.

Kansas Minimum Wage Rates and Exceptions for 2024

This table is an overview of how the people of Kansas are provided with the minimum wage. Different categories serve different wage policies; we have listed them in this table.

As noted, Kansas's minimum wage, $7.24 per hour, has stayed the same since 2009; other states are looking to increase the wage. Due to this decision, there is pressure on Kansas to raise their wage.

The minimum wage in Kansas affects the workers of the lower wage scale or those in part-time positions. It becomes challenging to align with the cost of living. How do employees even fight with it, and what are the rights associated with different categories of employees?

Let's understand employees' rights and protection under current minimum wage laws.

Federal Minimum Wage Rate and Hours Worked

The federal minimum wage is $7.25 per hour, and the calculation for 40 hours per week is $290, excluding taxes. This is the general income of a person who starts and finishes work on time.

Employees who work more than 40 hours per week are paid half their regular hourly rate for the extra hours. The U.S. Department of Labor's wage and hour division declared this rule. Employees should know about this and only work additional hours if paid.

Example: A Kansas retail employee who works 45 hours a week would receive $290 for the first 40 hours and $54.40 for the five overtime hours, totaling $344.40 before taxes.

Tipped Employees and "Tip Credit"

Tipped employees, such as restaurant servers and bartenders, earn $30 monthly in tips. Their employer should pay them a minimum of $2.31 per hour as a fixed amount.

The standard minimum wage for employees is $7.25 per hour, so if the tips do not add up, the employer needs to pay to make up the difference.

Example: If a tipped employee makes only $5.00 per hour in tips on a slow shift, their employer is responsible for contributing an additional $2.25 per hour to meet the $7.25 hourly requirement.

Wages for Student Workers and Interns

Generally, students from colleges and universities are in work-study programs or associated internships, and they should be paid at least 85% of the minimum wage, which is $6.16 per hour.

The working time for students is 20 hours per week as this policy allows educational institutes to give students opportunities while managing labor costs.

Example: A university student working 15 hours per week at a rate of $6.16 per hour will earn $92.40 weekly under this exception.

Training Wage for New Workers Under Age 20

Training programs are provided to workers for quality and polished outcomes in the business while they work. While training includes teaching new workers, each worker under the trained program should still be paid. New employees under 20 are given a "training wage" of $4.25 per hour over 90 days.

Example: A teenager (under 20) working their first job in Kansas, paid at the training rate of $4.25, would make $170 for a 40-hour workweek during this 90-day training period.

Rights for Federal Contractor Employees

Workers who federal contractors employ should receive a minimum wage of $17.75 per hour starting January 1, 2024. This wage is considered higher than the regular amount that state and federal law decide.

FACT: On November 24, 2021, the U.S. Department of Labor published a rule called "Increasing the Minimum Wage for Federal Contractors." The rule was to be "made effective" by President Biden's Executive Order 14026 to advance the minimum wage payable to contract workers working on federal contracts.

In his Executive Order signed on April 27, 2021, President Biden stated that fair pay to contract workers will assist the government in economic and operational efficiency when it receives services from companies outside the government.

Example: A Kansas janitorial worker employed under a federal contract at a military base will see a substantial pay increase, ensuring they earn at least $688 per week if working full-time.

Exemptions and Coverage Under the Fair Labor Standards Act (FLSA)

Certain employees are exempt from minimum wage and overtime provisions under the FLSA. This includes salaried professionals such as executives and administrative workers who help meet specific criteria regarding job duties and earnings.

Kansas law states some strict rules for minors under 18; they should have specific work hours and are prohibited from working or associating with hazardous occupations. However, this helps protect the young workers and opens safer opportunities to work with.

Economic Realities and Potential for Future Wage Increases

Imagine having the same minimum wage since 2009. It has been frustrating for people to cover basic expenses like housing, healthcare, food, and other essential costs.

Since minimum-wage earners have a difficult time covering the basic expenses in Kansas, other states like Missouri have raised their minimum wage to $12 per hour in 2024, and due to that, there is severe pressure on Kansa to raise the living wage standards.

If the minimum wage in Kansas increases, then the difference in the cost of living can be fulfilled.

Preparing for Changes to Kansas Minimum Wage

There have been several discussions about raising minimum wage funds in Kansa, and trust us, it has been gaining momentum. There is new legislation currently under consideration, and if it gets approved, there is a chance of an increase in the minimum wage. Which ultimately is good news for low-wage employees.

Not only this, but a simple increase in the minimum wage amount leads to various potential changes along with maintaining a solid workforce, and it is essential to be prepared for the same.

Let's get into some potential points that should be taken care of while being prepared for changes to the Kansas minimum wage.

Review Current Payroll and Expenses

Of course, who does not like more money in their bank accounts? A wage increase impacts budgets, but in a good way for lower minimum wage employees and bad news for all business owners who must increase their pay.

In this situation, there are a few things to take care of employers:

• A timely audit of the payroll system is needed to identify the areas of impact where they have to see where to manage funds.
• Minimum wage assessment is where expenses and profitability are influenced.
• Determine the overall percentage of employees affected by the wage increase.

For an instance,

• Wage increase per worker per week = $10/hour * 40 hours = $400
• Total wage increase for 10 workers = $400 * 10 = $4,000

If the wage increase exceeds $10 per hour and each of the ten workers works 40 hours a week, the total wage increase for the business would be $4,000 per week.

Streamline Payroll Processes with Technology

Payroll changes, significantly raising the minimum wage, can affect small businesses with fewer resources to work on or have fewer percent of profits. The financial change is affected. What can a company do here?

Let us give you some ideas!

Retain Top Talent with Competitive Benefits

Overall, an increase in wages can intensify the competition for skilled and strong employees where employers should;

• Offer additional perks and benefits like flexible schedules, health benefits, and personal skill development opportunities.
• Small raises can improve benefits and employee retention in high-cost areas like Kansas City.

This helps in consistent motivation amongst employees to work efficiently.

Evaluate Staffing Needs

Higher wages require businesses to operate with fewer staff members and adjust workloads to manage costs. Staffing in the industry can be mindfully done by;

• Reduce staff size and operate with only employee categories that are needed.
• Cross-train existing employees for every role associated with the company to increase efficiency.
• Hire part-time staff who can work in particular roles, especially those who do not need to invest their entire time in the company.

Monitor Legislative Updates

Only one piece of advice for all businesses is always to stay updated on Kansas state law. Staying current with the information helps lead to smooth business operations related to funds. This is how you can do it;

• Adjustments to exemption rules
• Provisions for tipped employees and more.
• Follow updates on the overall proposed legislation and implementation dates for the company.
• Use overall insights and make sure that there is smooth compliance between employers and employees.

Impact of Increase in Minimum Wage on Employees

An increase in minimum wage puts a smile on employee's faces. There is a core impact on employees, and they are;

Quality Living With Ease

A higher minimum wage directly raises the earnings of low-wage workers, which helps enable better coverage and the overall actual cost of essentials like food, housing, healthcare, and other expenses.

An increase in the wage amount, from $7.25 to $10.00 per hour, gives a full-time worker an extra $110 weekly, which might not be a small amount for a few families.

Improved Job Satisfaction:

Workers earning a higher wage often feel more valued and worthy and seem motivated with consistent enthusiasm.

It has also been found that employees who are satisfied with their salary or compensation are more likely to be productive by 13%. It states that financial well-being positively impacts personal and professional satisfaction.

Workers earning a higher wage often feel more valued, leading to higher motivation and productivity. It fosters a more positive work environment, reducing stress and dissatisfaction.

Reduced Employee Turnover:

If you want skilled employees in the company, all you need to do is pay them what they deserve and are worthy of. Higher wages help retain qualified employees, which saves employers the costs associated with recruiting and training new hires.

Overall, better wages and strong incentives help employees to work and stay long-term.

Opportunities for Career Growth:

The growth while working is always financial first and upskilling second. It is the practical approach. Higher wages push businesses to invest in hiring skilled employees and offering workers better training and further opportunities, which is mutually beneficial.

Summing Up Kansas Minimum Wage Speculation

Since 2009, Kansas has had a minimum wage of $7.25 per hour. The rate of cost of living is constantly increasing, which makes it difficult for the manual employee to cover basic expenses, but since there are growing discussions about increasing this wage level, preparing commercial payroll systems that use technology to check multiple payroll streams and also being appealing enough to compete will be challenging.

A raise in wages would increase the economic security of workers and job satisfaction; aside from that, it would make the economy more just and prosperous. It is now the ideal time for Kansas to bring its wage policy into reality and make the future of employees and companies better and more secure.