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21 states to see minimum wage increases by January 1

4 months 2 weeks 1 day ago Friday, December 31 2021 Dec 31, 2021 December 31, 2021 8:12 AM December 31, 2021 in News
Source: CNN

In 21 U.S. states, workers who make minimum wage will see a bigger paycheck beginning January 1, 2022.

According to CNN, after the start of the new year, these states will enact pay increases that range from cents to dollars per hour.

A number of the increases will go into effect Saturday, but New York's began as early as Friday.

New York and seven other states are including 2022’s bump in minimum wage in a series of scheduled raises that aim to reach a goal of a $15 minimum wage in the years to come.

The other states that are accompanying New York in this endeavor are California, Delaware, Illinois, Maryland, Massachusetts, New Jersey and Rhode Island, according to a report from payroll experts at Wolters Kluwer Legal & Regulatory US, a company that provides finance, compliance and regulatory information.

Other states are increasing minimum wage due to previously approved legislation or ballot initiatives, and additional state-mandated wage increases.

Arizona, Colorado, Maine, Minnesota, Montana, Ohio, South Dakota, Vermont and Washington are making the adjustment as a result of automatic cost-of-living adjustments based on inflation.

CNN notes that Missouri voters passed a proposition in 2018 that gradually increases the statewide minimum wage to $12 over five years. Michigan, New Mexico and Virginia adopted similar legislation with $12 goals.

Other states that will increase minimum wage later in the year include Connecticut, Oregon, Florida and Nevada.

Despite these adjustment in a number of U.S. states, the federal minimum wage will remain $7.25, a rate that hasn't moved since it began in 2009.

President Joe Biden previously advocated for a $15 federal minimum wage and already signed an executive order in April that increased the minimum wage for federal contractors to $15. That raise will go into effect at the end of January.

But additional attempts to enact a nationwide federal increase were thwarted last February when the Senate parliamentarian ruled against including an increase in the minimum wage in the COVID relief bill.

With federal legislation hesitant to budge on the issue, some private companies have taken it upon themselves to increase their minimum wages. For example, in September, Walmart increased its minimum wage to $12 per hour and Amazon bumped its average starting rate up to $18.

In addition to the 21 states, some cities and counties are implementing pay increases. Thirty-five cities and counties will enact higher wages in the new year, according to the National Employment Law Project.

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