This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: Half of U.S. states raising minimum wage in 2022
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Trending > Half of U.S. states raising minimum wage in 2022
Trending

Half of U.S. states raising minimum wage in 2022

Editorial Board Published January 5, 2022
Share
Half of U.S. states raising minimum wage in 2022
SHARE

Minimum-wage workers across much of the country are set to see bigger paychecks this year as 25 states and the District of Columbia phase in higher wage requirements for employers.

Most of those 26 jurisdictions have bumped the federal minimum wage of $7.25 an hour for non-tipped workers, which hasn’t been increased since 2009, to at least $10 an hour.

The laws took effect in 20 states on Jan. 1. Another three states will raise the rate on July 1, and Florida will do so on Sept. 30. New York raised its minimum wage from $12.50 to $13.20 per hour on Dec. 31.

Brian Marks, who teaches economics at the University of New Haven, said the hikes continue a “trend of legislatively scheduled state minimum wage increases” above the federal minimum wage for nonexempt employees.

He said the increases, intended to secure living wages and motivate job seekers during a labor shortage, may prove ineffective. The supply chain crisis and other pandemic factors, he said, have led many employers to raise their minimum pay well above the new state targets.

“Most entry-level workers are already earning more than the minimum wage because employers are having to pay more during the pandemic to fill open positions,” Mr. Marks said. “For example, many fast-food restaurants are either already paying their employees above the minimum wage or are purchasing equipment like self-serve fountain drink machines to eliminate employees.”

In 48 states, the share of workers making the local minimum is less than 2.8%, even when indexed for inflation. The two exceptions are Louisiana and South Carolina, where 3.4% and 4.4% of their respective workers earn the minimum wage.

Hans Dau, a supply chain analyst who runs the Mitchell Madison Group business consulting firm, said the increases will not affect many workers in most U.S. markets for this reason.

“Minimum wage laws are largely political theater as less than 1.5% of U.S. workers work at the minimum wage level,” Mr. Dau said. “There are few markets where minimum wage is a factor, and those probably employ much of the well over 5% of the workforce that is in the U.S. illegally.

On Saturday, Virginia hiked its minimum wage from $9.50 to $11 per hour — the largest increase in the nation this year.

Maryland raised its minimum wage from $11.75 to $12.50, the second year in a row that it upped hourly worker pay by 75 cents as part of a phase-in plan to increase the minimum each year until it reaches $15 in 2025.

California began the year by raising the state’s minimum wage from $14 to $15 per hour, the highest minimum wage outside the District of Columbia.

Four other states raised their minimum wages by at least $1 this year: Delaware, by $1.25 to $10.50 per hour, and Illinois, New Jersey and New Mexico by $1 to $12, $13 and $11.50, respectively.

Rick Manning, president of the Fairfax, Virginia-based Americans for Limited Government, said the higher wages could lead some businesses to hire more experienced workers than young people for entry-level work.

“It’s an attack on young people and their ability to learn how to work,” Mr. Manning said. “In today’s economic environment, where small businesses are struggling for survival with supply chain difficulties, the government raising the cost of labor will kill some businesses, put some employees who aren’t deemed worthy of the increased wages out of work, and increase automation like self-serve checkouts at Walmart and the grocery store.”

Mr. Manning, a Labor Department chief of staff for public affairs in the George W. Bush administration, said thousands of workers on the lower end of the wage scale lost their jobs in Seattle because of a 2014 city law that gradually raised the minimum wage for companies with more than 500 employees from $9 to $15 an hour.

“We know that in Seattle, the City Council raised the minimum wage with the expectation that workers would receive a significant pay increase,” Mr. Manning said. “Instead, a lot of restaurants paid the best-performing employees more than $15 an hour and laid off the worst-performing employees.”

On Jan. 2, 2020, Kate Rogers and Nick Wells reported for CNBC that the Seattle wage hike left businesses short-handed because employees opted to work fewer hours in a tight labor market.

CNBC noted that Democratic Party presidential candidates Bernard Sanders and Joseph R. Biden advocated raising the federal minimum wage to $15 an hour. Congress has yet to fulfill that wish.

President Biden issued an executive order in April to raise the minimum wage for federal contract workers to $15 an hour. The rule takes effect on Jan. 30.

The National Employment Law Project reports that 56 municipalities are also raising the minimum wage this year.

Mayor Muriel Bowser has announced that the District of Columbia will increase its hourly minimum wage to $16.10, among the highest in the nation, on July 1.

On Jan. 1, West Hollywood, California, raised the minimum wage for hotel workers to $17.64 an hour, the highest in the country.

The other states that raised their minimum wages, effective Saturday, were Missouri ($11.15, an 85-cent increase), Vermont ($12.55, an 80-cent increase), Washington ($14.49, an 80-cent increase), Massachusetts ($14.25, a 75-cent increase), Rhode Island ($12.25, a 75-cent increase), Arizona ($12.80, a 65-cent increase), Maine ($12.75, a 60-cent increase), South Dakota ($9.95, a 50-cent increase), Ohio ($9.30, a 50-cent increase), Montana ($9.20, a 45-cent increase), Minnesota ($10.33, a 25-cent increase), Colorado ($12.56, a 24-cent increase) and Michigan ($9.87, a 22-cent increase).

On July 1, Connecticut will raise its minimum wage by $1 to $14 per hour while Nevada and Oregon increase theirs by 75 cents to $9.50 and $13.50 per hour, respectively.

Florida will increase its minimum wage by $1, to $11 per hour, on Sept. 30.

Twenty-one states, including Texas, Pennsylvania, Indiana and Utah, have not raised their minimum wages above the $7.25 federal rate.

Five of these states — Alabama, Louisiana, Mississippi, South Carolina and Tennessee — have not adopted separate minimum wages. The federal minimum wage of $7.25 applies as well as in Georgia and Wyoming, which have state minimum wages below the federal level.

Christine McDaniel, a senior fellow at George Mason University’s Mercatus Center free market think tank, said many businesses will respond to minimum wage hikes this year by either raising prices for goods and services or reducing work hours.

“Overall, the empirical evidence on the employment effects of increasing the minimum wage is mixed at best,” said Ms. McDaniel, a former Treasury Department deputy assistant secretary.

TAGGED:TrendingWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article GM Reveals Electric Chevy Silverado to Counter Ford GM Reveals Electric Chevy Silverado to Counter Ford
Next Article Natural-Gas Crisis Pushes German Utilities Into Dash for Cash Natural-Gas Crisis Pushes German Utilities Into Dash for Cash

Editor's Pick

JPMorgan unveils its 2025 summer season studying record

JPMorgan unveils its 2025 summer season studying record

JPMorgan Chase Chairman and CEO Jamie Dimon on the significance of management abilities, deregulation coverage, power independence and the Federal…

By Editorial Board 4 Min Read
Man shot and killed on one hundredth Avenue in Oakland on Saturday
Man shot and killed on one hundredth Avenue in Oakland on Saturday

Oakland police are investigating the loss of life of a person, 34,…

1 Min Read
Japan to Start Medical Trials for Synthetic Blood This 12 months
Japan to Start Medical Trials for Synthetic Blood This 12 months

credit score – Adrian Sulyok on Unsplash Japan is the primary nation…

4 Min Read

Oponion

If You Are Buying an iPhone 14, Some Ways to Save on Your Wireless Bill

If You Are Buying an iPhone 14, Some Ways to Save on Your Wireless Bill

The most confusing feature of any new iPhone might be…

September 9, 2022

Stocks Hit Records as Fed Scales Back Bond Buying

Major U.S. stock indexes hit concurrent…

November 3, 2021

Greenback Tree CEO Rick Dreiling steps down, citing well being considerations

KB Advisory founder and President Kristin…

November 5, 2024

China’s Startups Are Awash With Money as Beijing Shifts Focus to ‘Hard Tech’

Unlike in previous years, when most…

January 13, 2022

Hegseth nomination sinking quick within the Senate 

Senate Republicans say Pete Hegseth, President-elect…

December 5, 2024

You Might Also Like

Tenvil Mackenson: Rebuilding Haiti, Brick by Brick
LifestyleTrending

Tenvil Mackenson: Rebuilding Haiti, Brick by Brick

In a country often entangled in instability and shadowed by accusations of corruption and criminal conspiracies, Tenvil Mackenson has emerged as a striking…

4 Min Read
Finding Voice Through Silence: The Story of OR GOLAN
LifestyleTrending

Finding Voice Through Silence: The Story of OR GOLAN

In a world where expression is often taken for granted, finding one’s voice can be an uphill battle—especially when that…

6 Min Read
The Landscape of International Trade in 2025: Constant Evolution and Strategic Shifts
TechTrending

The Landscape of International Trade in 2025: Constant Evolution and Strategic Shifts

The international trade landscape is in constant flux, and the year 2025 is no exception. According to expert Manoel Gil…

3 Min Read
Lara Rose’s Journey from Aspiring Trauma Surgeon to a Seven-Figure Earning Digital Entrepreneur
Trending

Lara Rose’s Journey from Aspiring Trauma Surgeon to a Seven-Figure Earning Digital Entrepreneur

You never know when a viral moment will change your entire life. That was certainly the case for Lara Rose,…

5 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?