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New Year Means Increased Minimum Wages for 20 States

WASHINGTON — Twenty states have ushered in the new year by implementing minimum wage increases, reports the National Employment Law Project (NELP).

The increases, which took effect on or about Jan. 1, are estimated to boost the incomes of 3.1 million low-paid workers, according to an analysis of Census data by the Economic Policy Institute. As a result of these increases, according to NELP, for the first time a majority of states—29, plus the District of Columbia—will have minimum wages that surpass the federal minimum wage of $7.25.

Arkansas, Nebraska and South Dakota approved increases through ballot measures in the 2014 elections.

Connecticut, Hawaii, Maryland, Massachusetts, Rhode Island, Vermont and West Virginia passed legislation to increase their minimum wage earlier in 2014.

Arizona, Colorado, Florida, Missouri, Montana, New Jersey, Ohio, Oregon and Washington state are adjusting their minimum wages in accordance with state laws requiring automatic annual increases to keep pace with the rising cost of living, while New York increased its wage as a result of 2013 legislation that increases the state’s minimum wage in three steps to $9 by Dec. 31, 2015.

The recent increases will generate $826.8 million in new economic growth, says NELP, as low-paid workers spend their increased earnings on basic necessities such as food, gasoline and housing.

The organization adds that the economic boost will increase to at least $1.1 billion later in the year, once increases in Alaska ($8.75 on Feb. 24), Delaware ($8.25 on June 1), Minnesota ($9 on Aug. 1) and Nevada (date to be determined) are taken into account.

Several cities have also scheduled minimum wage increases for 2015, including San Francisco ($11.05 on Jan. 1, $12.25 on May 1); Seattle ($11 on April 1); San Jose ($10.30 on Jan. 1); SeaTac ($15.24 on Jan. 1); and Chicago ($10 on July 1).

Chicago will eventually increase its minimum wage to $13 under an ordinance approved by its city council in early December.

Below is a rundown of states that increased their minimum wage on or about Jan. 1:

  • Arizona — $8.05
  • Arkansas — $7.50
  • Colorado — $8.23
  • Connecticut — $9.15
  • Florida — $8.05
  • Hawaii — $7.75
  • Maryland — $8 (will increase to $8.25 on July 1)
  • Massachusetts — $9
  • Missouri — $7.65
  • Montana — $8.05
  • Nebraska — $8
  • New Jersey — $8.38
  • New York — $8.75
  • Ohio — $8.10
  • Oregon — $9.25
  • Rhode Island — $9
  • South Dakota — $8.50
  • Vermont — $9.15
  • Washington — $9.47
  • West Virginia — $8

“It’s great that states and localities are acting to lift wages and boost local economies by raising wages for their residents,” says Christine Owens, NELP executive director. “But the wage crisis is a national crisis, and one that Congress would wisely address by taking a page from the books of states and localities.”

Owens acknowledged the efforts made by voters and local governments in heeding public demand for higher wages, urging Congress to do the same and give workers across the country the “pay raise they need and have earned.”

Several states and cities are expected to approve minimum wage increases over the next couple of years, according to NELP, as legislative or ballot campaigns are under way or are being explored in Arizona, California, Colorado, Delaware, Illinois, Maine, Missouri, Oregon, Pennsylvania and New York.

Local leaders are also exploring minimum wage increases of at least $13 per hour in several cities and localities, including Los Angeles, New York City and Washington, D.C., NELP adds.

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Have a question or comment? E-mail our editor Bruce Beggs at [email protected].