Twenty states are increasing their minimum wage rates – some by pennies, by a dollar or more – as part of pre-determined efforts to adjust for cost-of-living benefits or for $ 15-an-hour. To ratchet towards goals like minimum payment.
In New Mexico, the minimum wage would increase to $ 10.50, up from the current $ 9 wage to $ 1.50. And in California, the rate will increase from $ 13 to $ 14 per hour for employers with 26 workers or more, the most state-wide baseline in the country. In Minnesota, mileage is only 8 cents, at a rate of $ 10.08 per hour for large employers. (Scroll down To see the complete list of changes).
There has been no change in the federal minimum wage of $ 7.25 per hour since 2009 and by 2021, the minimum wage in 20 US states will continue to be either equal to or less than the federal level, making their default baseline. The value of the federal minimum wage increased to $ 1.60 in 1968, which would be about $ 12 in 2020.
However, some of the new states that grew up, which were established years ago, now hold added importance when low-paid workers have been particularly vulnerable to the coronavirus epidemic.
“We have very low salaries, service workers working through the Kovid crisis, many of whom are at higher risk jobs of transmission,” said Ken Jacobs, president of the Center for Labor Research and Education at the University of California Berkeley . “This will be a very welcome step for them. Also, a lot of families are struggling with this crisis right now.”
Ben Zipper, an economist at the Economic Policy Institute, a progressive think tank, said workers’ needs are much higher during an economic recession, because so many people are unemployed, they have little bargaining power and employers have low wages. Are able to keep.
Minimum wage workers are generally young and work primarily in the leisure and hospitality sector, federal data show. The closure of restaurants, hotels and entertainment venues due to public health and safety measures has shaken these service-heavy businesses into an epidemic.
As the epidemic has grown, housing and food insecurity have increased and incomes have declined. And it is low-paid workers who have suffered the brunt of the economic downturn.
Business interests push back
At the same time, some legislators and business organizations have called for a moratorium on the prescribed minimum wage hike, citing the burden on already struggling small businesses.
In New York, members of the state Senate Republican Conference urged Governor Andrew Cuomo to stop the planned increase to take effect on Thursday.
Senate Republican Leader Rob Ort said in a statement in early December, “We don’t want our small businesses to make the tough choice to lay off workers or close their doors as it becomes the final straw during the financial fragility of the epidemic . “
Cuomo’s administration later released a report, stating that the recovery of the state’s labor market is “unlikely to hurt to a large extent” by rising minimum wages, and rather by the speed of vaccines and the possibility of delivery on the job market Will have a lot of impact.
Evercore ISI economist Ernie Tedesky said via email, “In New York the minimum wage has been gradually being applied over many years, not all have declined.” “Also, and this is the most important point, New York’s minimum wage increase program has been known for years now, and businesses are expecting increases throughout this time.”
Starting Thursday, the state’s minimum hourly wage will increase 70 cents to $ 12.50 per hour. Suburban Long Island and Westchester County will also have a minimum wage rate of $ 13 per hour to $ 14 per hour. (In New York City the minimum was already set at $ 15).
Some states will have to wait
In Michigan, the epidemic likely will attempt to raise the state’s minimum wage. When the state’s annual unemployment rate is above 8.5%, a state law prohibits the increase in the scheduled minimum wage.
Although the unemployment rate in Michigan has improved recently, it averaged 10.2% from January to October, so this annual average is “highly unlikely” Will go below the 8.5% limit, The state’s employment relations bureau said in a press release. The state’s minimum wage would be $ 9.65 vs. $ 9.87.
Zipper of the EPI said that for 20 states, which would raise the minimum wage, the effect should ultimately be more positive than negative.
“Redistribution of money towards the lowest paid workers is the smart policy, because they will spend it,” he said. “This will help reduce the consumer demand that our economy is facing now.”
And public support for the minimum support increase seems to be increasing. On election day, voters in Florida passed a measure raising the state’s minimum wage to $ 15 per hour by 2026 – from $ 8.56 this year. A Public Agenda / USA Today / Ipsos poll released in September showed increased public support for the federal minimum wage increase.
Most minimum wage benefits have occurred at the state, city, or occupation level and include companies such as Target and Amazon, which offer $ 15-an-hour pay.
President-elect Joe Biden wants to raise the federal minimum wage to $ 15 per hour, but it is unlikely the Senate will have film-proof support to achieve them. However, through an executive order, the minimum wage for federal contractors could increase to $ 15 per hour.