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Here’s where the minimum wage will increase next year

Here’s where the minimum wage will increase next year
BEFORE VOTERS NEXT FALL. IT TAKES AWAY FROM YOUR WORTH. AND SO PEOPLE FEEL LIKE THEY CAN TREAT YOU LESS. ANGELA HAS BEEN WORKING IN RESTAURANTS FOR 25 YEARS. TONIGHT SHE THREW HER SUPPORT BEHIND A MOVEMENT CALLED ONE FAIR WAGE, WHICH AIMS TO RAISE THE MINIMUM WAGE FOR TIPPED WORKERS IN MASSACHUSETTS. ANGELA TOLD US MAKING A SUBMINIMUM WAGE MAKES YOU FEEL SUBHUMAN, AS SHE SHOWED US A RECENT PAYCHECK AFTER TAXES. AND THEN AT THE END OF THE DAY, I GET A CHECK FOR $0.00. CURRENTLY TIP EARNERS TAKE HOME WHAT’S CALLED A SERVICE RATE OF $6.75 AN HOUR. AND THEIR TIPS ARE SUPPOSED TO AT LEAST EQUAL THE STANDARD MINIMUM WAGE OF $15 AN HOUR, IF NOT THEIR BOSSES ARE SUPPOSED TO MAKE UP THE DIFFERENCE. BUT SUPPORTERS OF ONE FAIR WAGE SAY THAT DOESN’T ALWAYS HAPPEN. TIP WORKERS ARE OVERWHELMINGLY WOMEN, AND PARTICULARLY WOMEN OF COLOR, MANY OF WHOM ARE SINGLE PARENTS. LONG BEFORE SHE WAS A CONGRESSWOMAN, AYANNA PRESSLEY WAS A HOTEL WORKER. I WANT YOU TO KNOW THAT I GIVE A -- ABOUT YOUR LIVELIHOOD, BUT I CARE THAT MUCH MORE ABOUT YOUR LIVES. ONE FAIR WAGE. NOW HAS WELL OVER THE 75,000 SIGNATURES IT NEEDS TO GET THIS ISSUE ON THE BALLOT. BUT THE STATE RESTAURANT ASSOCIATION SAYS A UNIVERSAL WAGE WOULD BE DEVASTATING FOR MANY OWNERS. A SIMILAR BILL WAS PASSED IN WASHINGTON, D.C. AND WE’RE ONE YEAR OUT AND WE’RE SEEING AN AVERAGE ONE RESTAURANT A WEEK CLOSE. WE’RE SEEING LABOR COSTS THAT HAVE INCREASED BY 50%. IRENE LEE, CO-FOUNDER OF MAMIE DUMPLINGS IN SOUTH BOSTON, ALREADY GIVES HER EMPLOYEES MINIMUM WAGE AND TIPS. WE’RE GOING TO FIGURE THIS OUT AS A COMMUNITY AND AS AN INDUSTRY. AND WHEN IT’S THE LAW, WE’RE ALL GOING TO HAVE AN EQUAL PLAYING FIELD TO WORK TOGETHER ON THIS. THE ONE FAIR WAGE LAW HAS ALREADY PASS
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Here’s where the minimum wage will increase next year
At the start of the new year, anyone working a minimum wage job will be paid more in 22 states and in at least 40 cities and counties across the country.Video above: Movement to raise Massachusetts minimum wage for tipped workersThe higher hourly rates are due either to scheduled increases or lawmakers having indexed the minimum wage in their jurisdiction to inflation, most typically using the Consumer Price Index as their gauge.Come Jan. 1, seven states and the District of Columbia will have minimum wages of $15 or more, up from just four states plus D.C. this year. The newcomers to the category are Maryland, New Jersey and most of New York State (with the exception of New York City, Westchester and Long Island, which already had a $15 minimum in place and where the minimum wage is increasing to $16 in the new year).The highest state minimum wage in 2024 will be Washington state, at $16.28, up from $15.74 currently. A close second is California, which is raising its minimum to $16 from $15.50 today.The state with the biggest jump in its minimum wage next year will be Hawaii, which is hiking it by $2.Jan. 1 isn’t the only day minimum wages will go up. Some states, such as Nevada and Oregon, have increases set for July 1. Florida’s minimum will go up on Sept. 30.(See the full list of states increasing their minimum wages below.)Cities, counties and some industries often trump state minimumsStates’ minimum wage rates are often eclipsed by those in many of their own cities and counties.Take the city of Tukwila, Washington, just south of Seattle. Its minimum wage will hit $20.29 in January, up from $18.99 now. At that level it will have the highest standard minimum wage rate in the country among states, counties and cities on Jan. 1, said Jana Bjorklund, senior counsel and director of employment law and compliance at GovDocs, a compliance software provider for large, multi-jurisidiction employers.Seattle, which will have a rate of $19.97, won’t be far behind.Next year, at least 40 cities and counties are hiking their minimum wages, according to GovDocs. They include Flagstaff, Arizona (to $17.40); Mountain View, California (to $18.85); Denver, Colorado (to $18.29) and Portland, Maine (to $15).And in some states, there are big sector-specific wage hikes on tap. In California, for instance, starting in April, fast food workers must be paid at least $20 an hour, and on June 1, healthcare workers will start earning between $18 and $23 an hour depending on their role and the size and type of employer they work for – an hourly rate that will eventually reach $25.In New York City, app-based restaurant delivery workers (e.g., those working for Uber, Grubhub and DoorDash) now must be paid a minimum hourly rate of $17.96, which is set to increase to $19.96 by 2025.The push for non-poverty wagesThe federal minimum wage has been stuck at $7.25 since 2009. And 20 states – including Pennsylvania, New Hampshire, Alabama and Mississippi – still adhere to it.The push to raise it has gone on for years because minimum wage workers stuck at $7.25 have lost substantial buying power.Had it just been adjusted for inflation since 2009, it would be $10.33 today. But advocates for a higher minimum wage, including Holly Sklar, CEO of Business for a Fair Minimum Wage, would rather see it adjusted for inflation from where it was in 1968. The wage then was $1.60, which in today’s dollars would be $14.39. That $1.60 provided minimum wage workers with their greatest purchasing power, Sklar said. “Every minimum wage increase since 1968 has been too little too late. … Full-time jobs used to keep people out of poverty.”She points to MIT’s living wage calculator to assess what a single person without kids would have to earn per hour just to cover the cost of basic needs (e.g., food, housing, transportation and medical care).For example, in Mississippi, where the minimum wage is just $7.25, a person would have to earn $15.30 an hour in Pike County just to pay for basic needs. But among childcare workers, fast food cooks and cashiers in the state, the median wage (meaning half of people in those jobs earn less) ranges between $9.83 and $10.17 an hour, Sklar noted.Given how little movement there has been at the federal level to raise the country’s minimum wage sufficiently, she expects states and local jurisdictions will continue to do the heavy lifting.And she believes the economic case for their increases is there for both workers and employers.For workers, of course, “It eases the burden,” Sklar said. “People replace tires they couldn’t replace or get their kids clothes.”For businesses, she said, consumer spending goes up because minimum wage workers will spend their additional earnings quickly. And among other things, it will help boost retention of one’s workers because they won’t be as quick to quit for another 25 cents an hour. Less turnover, in turn, can reduce an employer’s hiring and training costs, among other benefits.“It’s a virtuous cycle,” Sklar said.State minimum wage increases in 2024*Alaska: $11.73, up from $10.85Arizona: $14.35, up from $13.85California: $16, up from $15.50Colorado: $14.42 (proposed), up from $13.65Connecticut: $15.69, up from $15Delaware: $13.25, up from $11.75Florida: $13, up from $12, on Sept. 30Hawaii: $14, up from $12Ilinois: $14, up from $13Maine: $14.15, up from $13.80Maryland: $15, up from $13.25 for large employers and $12.80 for small employersMichigan: $10.33, up from $10.10Minnesota: $10.85 for large employers, up from $10.59; $8.85, up from $8.63 for othersMissouri: $12.30, up from $12Montana: $10.30, up from $9.95Nebraska: $12, up from $10.50Nevada: $12, up from a $10.25 or $11.25 (depending on health benefits) – effective July 1, 2024New Jersey: $15.13, up from $14.13New York: $15, up from $14.20 (except in New York City, Westchester and Long Island, where it is set at $16, up from $15)Ohio: $10.45, up from $10.10Oregon: Its $14.20 minimum wage will adjust for inflation on July 1Rhode Island: $14, up from $13South Dakota: $11.20Vermont: $13.67, up from $13.18Washington: $16.28, up from $15.74District of Columbia: Its $17 minimum wage will adjust for inflation on July 1*Unless otherwise noted, changes take effect Jan. 1

At the start of the new year, anyone working a minimum wage job will be paid more in 22 states and in at least 40 cities and counties across the country.

Video above: Movement to raise Massachusetts minimum wage for tipped workers

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The higher hourly rates are due either to scheduled increases or lawmakers having indexed the minimum wage in their jurisdiction to inflation, most typically using the Consumer Price Index as their gauge.

Come Jan. 1, seven states and the District of Columbia will have minimum wages of $15 or more, up from just four states plus D.C. this year. The newcomers to the category are Maryland, New Jersey and most of New York State (with the exception of New York City, Westchester and Long Island, which already had a $15 minimum in place and where the minimum wage is increasing to $16 in the new year).

The highest state minimum wage in 2024 will be Washington state, at $16.28, up from $15.74 currently. A close second is California, which is raising its minimum to $16 from $15.50 today.

The state with the biggest jump in its minimum wage next year will be Hawaii, which is hiking it by $2.

Jan. 1 isn’t the only day minimum wages will go up. Some states, such as Nevada and Oregon, have increases set for July 1. Florida’s minimum will go up on Sept. 30.

(See the full list of states increasing their minimum wages below.)

Cities, counties and some industries often trump state minimums

States’ minimum wage rates are often eclipsed by those in many of their own cities and counties.

Take the city of Tukwila, Washington, just south of Seattle. Its minimum wage will hit $20.29 in January, up from $18.99 now. At that level it will have the highest standard minimum wage rate in the country among states, counties and cities on Jan. 1, said Jana Bjorklund, senior counsel and director of employment law and compliance at GovDocs, a compliance software provider for large, multi-jurisidiction employers.

Seattle, which will have a rate of $19.97, won’t be far behind.

Next year, at least 40 cities and counties are hiking their minimum wages, according to GovDocs. They include Flagstaff, Arizona (to $17.40); Mountain View, California (to $18.85); Denver, Colorado (to $18.29) and Portland, Maine (to $15).

And in some states, there are big sector-specific wage hikes on tap. In California, for instance, starting in April, fast food workers must be paid at least $20 an hour, and on June 1, healthcare workers will start earning between $18 and $23 an hour depending on their role and the size and type of employer they work for – an hourly rate that will eventually reach $25.

In New York City, app-based restaurant delivery workers (e.g., those working for Uber, Grubhub and DoorDash) now must be paid a minimum hourly rate of $17.96, which is set to increase to $19.96 by 2025.

The push for non-poverty wages

The federal minimum wage has been stuck at $7.25 since 2009. And 20 states – including Pennsylvania, New Hampshire, Alabama and Mississippi – still adhere to it.

The push to raise it has gone on for years because minimum wage workers stuck at $7.25 have lost substantial buying power.

Had it just been adjusted for inflation since 2009, it would be $10.33 today. But advocates for a higher minimum wage, including Holly Sklar, CEO of Business for a Fair Minimum Wage, would rather see it adjusted for inflation from where it was in 1968. The wage then was $1.60, which in today’s dollars would be $14.39. That $1.60 provided minimum wage workers with their greatest purchasing power, Sklar said. “Every minimum wage increase since 1968 has been too little too late. … Full-time jobs used to keep people out of poverty.”

She points to MIT’s living wage calculator to assess what a single person without kids would have to earn per hour just to cover the cost of basic needs (e.g., food, housing, transportation and medical care).

For example, in Mississippi, where the minimum wage is just $7.25, a person would have to earn $15.30 an hour in Pike County just to pay for basic needs. But among childcare workers, fast food cooks and cashiers in the state, the median wage (meaning half of people in those jobs earn less) ranges between $9.83 and $10.17 an hour, Sklar noted.

Given how little movement there has been at the federal level to raise the country’s minimum wage sufficiently, she expects states and local jurisdictions will continue to do the heavy lifting.

And she believes the economic case for their increases is there for both workers and employers.

For workers, of course, “It eases the burden,” Sklar said. “People replace tires they couldn’t replace or get their kids clothes.”

For businesses, she said, consumer spending goes up because minimum wage workers will spend their additional earnings quickly. And among other things, it will help boost retention of one’s workers because they won’t be as quick to quit for another 25 cents an hour. Less turnover, in turn, can reduce an employer’s hiring and training costs, among other benefits.

“It’s a virtuous cycle,” Sklar said.

State minimum wage increases in 2024*

Alaska: $11.73, up from $10.85

Arizona: $14.35, up from $13.85

California: $16, up from $15.50

Colorado: $14.42 (proposed), up from $13.65

Connecticut: $15.69, up from $15

Delaware: $13.25, up from $11.75

Florida: $13, up from $12, on Sept. 30

Hawaii: $14, up from $12

Ilinois: $14, up from $13

Maine: $14.15, up from $13.80

Maryland: $15, up from $13.25 for large employers and $12.80 for small employers

Michigan: $10.33, up from $10.10

Minnesota: $10.85 for large employers, up from $10.59; $8.85, up from $8.63 for others

Missouri: $12.30, up from $12

Montana: $10.30, up from $9.95

Nebraska: $12, up from $10.50

Nevada: $12, up from a $10.25 or $11.25 (depending on health benefits) – effective July 1, 2024

New Jersey: $15.13, up from $14.13

New York: $15, up from $14.20 (except in New York City, Westchester and Long Island, where it is set at $16, up from $15)

Ohio: $10.45, up from $10.10

Oregon: Its $14.20 minimum wage will adjust for inflation on July 1

Rhode Island: $14, up from $13

South Dakota: $11.20

Vermont: $13.67, up from $13.18

Washington: $16.28, up from $15.74

District of Columbia: Its $17 minimum wage will adjust for inflation on July 1

*Unless otherwise noted, changes take effect Jan. 1