Beginning in 2022, some states will enact wage claims ranging from cents to dollars an hour.
Many of the increases will go into effect on Saturday, but New York is set to begin on Friday.
In New York and seven other states, the increases are part of planned increases in efforts to reach the $15 minimum wage in the coming years. Additional states are California, Delaware, Illinois, Maryland, Massachusetts, New Jersey and Rhode Island, according to a report by payroll experts at Wolters Kluwer Legal & Regulatory US, a company that provides financing, compliance and regulatory information.
States have also increased rates due to previously approved legislation or ballot initiatives, and the automatic cost is due to other state-mandated wage increases — in places like Arizona, Colorado, Maine, Minnesota, Montana, Ohio, South Dakota, Vermont and Washington. Inflation-dependent living adjustments.
Missouri voters passed a proposal in 2018 to gradually increase the state’s minimum wage to $12 over five years. Michigan, New Mexico, and Virginia have adopted similar legislation with $12 targets.
Connecticut, Oregon, Florida and Nevada will also see minimum wage increases, which will take effect later in the new year.
Federal Efforts to Increase the Minimum Wage
The federal minimum wage will remain at $7.25, a rate that has not moved since it began in 2009. The nearly 13-year period is the longest American workers have ever worked without a federal government-imposed wage increase.
President Joe Biden and some progressive Democrats have previously called for a federal minimum wage of $15. By signing an executive order in April, Biden raised the minimum wage for federal contractors to $15. This increase will take effect at the end of January.
However, attempts to achieve a nationwide federal increase failed to bear fruit last February when a member of the Senate ruled not to include a minimum wage increase in the Covid-19 exemption bill. Independent Senator Bernie Sanders of Vermont introduced an amendment in March to try to include a minimum wage increase, following the senator’s decision. While the chances of its passage were already slim given the narrowly divided Senate, eight Democrats voted against the amendment.
Senator Joe Manchin of West Virginia, one of the Democrats who voted against the amendment, told CNN reporter Jake Tapper at the time that he would like to see the federal minimum wage rise to $11 and then “have to be indexed for inflation, so it never becomes a political football again.” Others who criticize raising the federal minimum wage argue that if employers were to pay $15 an hour to their workers, they would hire fewer workers — leading to fewer jobs.
Advocates like Biden argue that a $15 wage would put “people above the poverty line”. The Congressional Budget Office estimated in 2019 that a minimum wage of $15 would “move, online, approximately 1.3 million people out of poverty.”
While federal legislation has been stagnant, some private companies have taken it upon themselves to increase the minimum wage. In September, Walmart raised the minimum wage to $12 an hour and Amazon raised the average startup rate to $18.
In addition to the 21 states, individual cities and counties apply wage increases. 35 cities and counties will see wages rise in the new year, according to the National Labor Bill. In New York state, the $15 minimum wage applies only to certain places, including New York City, Long Island and Westchester County. And while Maryland raises the minimum wage to $12.50, Montgomery County, near Washington, D.C., has already implemented a $15 minimum wage.