The 5 countries with the highest real minimum wage at 1:22
(CNN Business) -
On Friday, many low-wage workers in the US will receive a pay raise.
Twenty states will raise their minimum wage rates - some in cents, others by a dollar or more - as part of pre-scheduled efforts to adjust cost-of-living earnings or to meet goals like the $ 15-an-hour minimum wage.
In New Mexico, the minimum wage will increase to US $ 10.50, US $ 1.50 more than the current salary of US $ 9. And in California, the rate for employers with 26 or more workers will increase from US $ 13 to $ 14 an hour, the highest state benchmark in the country.
In Minnesota, the profit is just 8 cents, at an hourly rate of $ 10.08 for large employers.
These 20 states raise their minimum wage
Nineteen states will increase their minimum wages on January 1, 2021. New York's increase occurred on December 31, 2020.
State |
New minimum wage |
Increment value |
|---|---|---|
Alaska |
US $ 10.34 |
15 ¢ |
Arizona |
US $ 12.15 |
15 ¢ |
Arkansas |
US $ 11.00 |
US $ 1.00 |
California |
US $ 14.00 |
US $ 1.00 |
Colorado |
US $ 12.32 |
32 ¢ |
Florida |
US $ 8.65 |
9 ¢ |
Illinois |
US $ 11.00 |
US $ 1.00 |
Maine |
US $ 12.15 |
15 ¢ |
Maryland |
US $ 11.75 |
75 ¢ |
Massachusetts |
US $ 13.50 |
75 ¢ |
Minnesota |
US $ 10.08 |
8 ¢ |
Missouri |
US $ 10.30 |
85 ¢ |
Montana |
US $ 8.75 |
10 ¢ |
New Jersey |
US $ 12.00 |
US $ 1.00 |
New Mexico |
US $ 10.50 |
US $ 1.50 |
New York |
US $ 12.50 |
70 ¢ |
Ohio |
US $ 8.80 |
10 ¢ |
South Dakota |
US $ 9.45 |
15 ¢ |
Vermont |
US $ 11.75 |
79 ¢ |
Washington |
US $ 13.69 |
19 ¢ |
The federal minimum wage of US $ 7.25 per hour has not moved since 2009 and, starting in 2021, 20 US states will continue to have a minimum wage equal to or less than the federal level, making US $ 7.25 is your default baseline.
The value of the federal minimum wage peaked in 1968 when it was $ 1.60, which would be worth about $ 12 in 2020 dollars.
While some of the new state raises were set years earlier, they have added importance now, when low-wage workers have been particularly hard hit by the coronavirus pandemic.
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"We have many low-wage service workers who are working during the COVID-19 crisis, many of whom have jobs with a higher risk of transmission," said Ken Jacobs, president of the Center for Labor Research and Education at the University of California-Berkeley.
“This will be a very welcome boost for them.
Also, many families are struggling right now in this crisis.
Workers' needs are greatest during an economic recession because, with so many unemployed people, they have little bargaining power and employers can keep wages low, said Ben Zipperer, an economist at the Economic Policy Institute, a progressive think tank.
Minimum wage workers are typically younger and predominantly hold jobs in the leisure and hospitality sectors, federal data shows.
These service businesses have been rocked during the pandemic as public health and safety measures have caused restaurants, hotels and entertainment venues to close.
As the pandemic has continued, food and housing insecurity has increased and incomes have fallen.
And it has been the lowest paid workers who have suffered the brunt of the economic consequences.
Pressure from commercial interests to adjust the minimum wage
At the same time, some lawmakers and business organizations have called for a pause in scheduled minimum wage increases, citing the burden on small businesses that are already struggling with the crisis.
In New York, members of the state Senate Republican Conference urged Governor Andrew Cuomo to halt the planned increases that would take effect Thursday.
"We do not want our small businesses to make the difficult decision to lay off workers or close their doors because this becomes the final blow during the financial fragility of the pandemic," Senate Republican Leader Rob Ortt said in a statement in early December. .
The Cuomo administration later released a report concluding that the state's job market recovery "is not likely to be substantially impaired" by increases in the minimum wage, and rather, the pace and distribution of vaccines is likely they will have a much greater effect on the labor market.
"New York is implementing the minimum wage gradually over many years, not all at once," Evercore ISI economist Ernie Tedeschi told CNN Business by email.
"Also, and this is the most important point, the schedule for increases in the minimum wage in New York has been known for years, and companies have been planning and waiting for increases all this time."
Starting Thursday, the state's minimum hourly wage will increase 70 cents to $ 12.50 an hour.
Minimum wage rates in the Long Island suburbs and Westchester County will also increase to $ 14 per hour from $ 13 per hour.
(The minimum was already set at $ 15 in New York City.)
Some states will have to wait
In Michigan, the pandemic will likely derail efforts to raise the state minimum wage.
There, a state law prohibits scheduled minimum wage increases when the state's annual unemployment rate is above 8.5%.
Although the unemployment rate has improved recently in Michigan, it averaged 10.2% from January to October, making it "highly unlikely" that the annual average will fall below the 8.5% threshold, said the Bureau of State Labor Relations in a press release.
The state minimum wage will remain at $ 9.65 versus an increase of $ 9.87.
For the 20 states that will increase their minimum wages, the effects should ultimately be more positive than negative, said Zipperer of the EPI.
"Redistributing money to the lowest paid workers is a smart policy, because they will spend it," he said.
"This will help the deficit in consumer demand facing our economy right now."
And public support appears to be growing for minimum wage increases.
On Election Day, Florida voters approved a measure to raise the state's minimum wage to $ 15 an hour by 2026, up from $ 8.56 this year.
A Public Agenda / USA Today / Ipsos poll released in September showed increases in public support for an increase in the federal minimum wage.
Most of the minimum wage increases have occurred at the state, municipal or corporate level and have included companies such as Target and Amazon that offer a pay of $ 15 an hour.
President-elect Joe Biden wants to raise the federal minimum wage to $ 15 an hour, but he is unlikely to have obstruction-proof support in the Senate to do so.
However, it could raise the minimum wage to $ 15 an hour for federal contractors by decree.
Minimum salary
