Well, this is one way to say, “Happy New Year!”
The minimum wage will rise in 20 states and the District of Columbia Thursday, as new laws and automatic annual adjustments kick in for the new year. As a result, 29 states will have a minimum wage above the federal requirement of $7.25 an hour, the liberal Economic Policy Institute reported.
The size of the hikes ranges dramatically, from just 12 cents in Florida to the significant $1.25 in South Dakota.
This is in part due to the various ways each state’s wage hike will kick in. In nine states, the adjustment just allows them to keep up with inflation. In 11 states and in D.C., the minimum wage increase is due to legislative action or voter-approved initiatives like those in Alaska, Michigan, Minnesota, South Dakota, and Vermont.
Delaware and Minnesota will get legislatively driven hikes later in the year, while New York will raise its minimum wage on Dec. 31 of this year, the Washington Post reported.
Among those states hiking the minimum wage for the new year, Washington state’s will be the highest at $9.47 an hour. Oregon follows with $9.25 an hour and Vermont and Connecticut will both have minimum wages at $9.15 an hour.
EPI estimates that 3.1 million workers will be affected by the wage hikes. Although more could ultimately be impacted if these hikes take a toll on job growth as predicted by some studies.
