Guam will see its minimum wage increase twice over a two-year span. The first increase will be $8.75 an hour by March 2020, and the second will be $9.25 an hour by March 2021. Governor Lou Leon Guerrero signed both bills, 136 and 128, into law in October 2019. The bills are now Public Laws 35-38 and 35-39, respectively.
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2020 Minimum Wage in Guam: $8.75 per hour
Since 2015, the minimum wage in Guam has surpassed the federal minimum wage of $7.25 per hour. Salaried minimums generally do not adhere to hourly wage minimums, and these are often set by private companies instead of mandated by local governments. There are exceptions to these requirements, and they follow U.S. federal minimum wage exception standards in almost all cases.
In 2019, Guam’s Department of Labor found that many companies had neglected to pay their service staff minimum wage. Instead, companies used tips and service charges to supplement the $8.25 minimum wage established by Title 22 GCA Section 3105 in Guam law.
“In conclusion, everyone in the service industry on this island is to be paid at least $8.25 an hour, Guam’s current minimum wage, for hours worked during each pay period. There are no exceptions and no substitutes for that – wait staff and bartenders included,” GDOL David Dell’Isola said.
Tipped employees will now make $8.75 an hour starting in March 2020.
A worker in Guam can expect to make $350 a for a standard 40-hour week with 8 hour days by March 2020, not accounting for alternate minimum wages or overtime pay.
Between March of 2020 and March of 2021, employees who earn minimum wage in Guam will make $18,200, barring exceptions.
Minors and Young Workers: $8.75
According to the Federal Labor Standards Act, minors and young workers are to be paid Guam’s standard minimum wage except in certain cases.
Disabled Workers: $8.75
Disabled workers are also to be paid Guam’s minimum wage except in certain cases.
Overtime in Guam follows federal standards and is paid at a rate of 1.5 times employee wages. At minimum wage, this means an employee in Guam will be paid $13.13 per hour for any hours they work in excess of 40 in a week. Holiday pay is considered similarly if the employee works overtime on a holiday.
Guam Minimum Wage Increase News
The Guam Chamber of Commerce warns against the “dangers of the government arbitrarily increasing the minimum wage by legislation.” The largest business on the island, the Chamber of Commerce finds that the increases may hurt small businesses. However, senators who argued for the wage adjustment contended that past wage increases have yet to cut workers’ hours and instead have yielded investments in employee training and revenue streams.
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