Minimum Wage Increases For 18 States Will Roll In On January 1
The U.S. minimum wage has remained stagnant over the last decade, the last time the federal minimum wage increased was in July 2009, from $6.55 to $7.25. Now, 18 states are taking matters into their own hands, and a raise in minimum wage with be effective January 1, 2018. Ten states are doing so as the result of legislation over the last few years, while eight states are doing so as smaller inflation-adjusted increases.
Economic Policy Institute estimates that the increases will benefit 4.5 million workers.
Those in Maine will see the largest increase, with a full dollar increase, up to $10 per hour on January 1, 2018. It will be followed by another annual increase of $1 in 2019 until the wage reaches $12 in 2020. Colorado, Hawaii, New York, Vermont, Rhode Island, Arizona, California, Washington and Michigan round out the other states that will enact a higher minimum wage as of January 1. The average increase is about $0.50 per hour of work.
New Jersey, Ohio, Florida, Alaska, Montana, South Dakota, Minnesota and Missouri will see a slight bump of $0.15, which is due to automatic increases to keep pace with price growth. Places including California, New York City, and Seattle are all on track to reach a $15 minimum wage by 2022.