The slow move to a living Minimum Wage: 14 states increase their Minimum Wage in 2016.

minimum wage 2016

With California and Massachusetts leading the way in the march to a $15.00 per hour minimum wage, 14 states have raised their minimum wage to start the New Year. Of the 14 states, 2 states, Colorado ($8.23 to $8.31) and South Dakota ($8.50 to $8.55), had the smallest increases.  Both of these states have laws that increase the minimum wage based on cost of living adjustments. Nine other states with such provisions did not raise their minimum wage due to a low inflation rate in their area. The remaining 12 state increases where due to legislation passed in 2014 or 2015, or as part of a series of raises in previous legislation.

All of the states raised their minimum wage on New Years day except New York and West Virginia, who raised their minimum wages on New Year’s Eve. California, Massachusetts and Nebraska had the greatest increase in the minimum wage at $1.00 per hour, with California and Connecticut having the highest state minimum wage in the nation at $10 dollars per hour. There are three more state minimum wage increases scheduled in 2016 in the states of Maryland and Minnesota as well as in Washington D.C. with a possible forth, Nevada, announcing in July whether or not there will be a cost of living increase to their minimum wage.

With this years increases, there are now 29 states plus Washington DC that are above the federally mandated minimum wage of 7.25 per hour.  The federal minimum wage has not increased since 2009, when it was raised from $6.55 per hour to the current $7.25 per hour.

Many cities and Municipalities through-out the nation have been setting a higher minimum wage than their host state. Seattle, Los Angeles and San Francisco, as well as a handful of smaller cities and municipalities on the West Coast, all are gradually phasing in a $15 minimum wage. Some local increases are tied to companies that do business with the local, city or state governments. Meanwhile, on the east coast, New York has a phased in increase in the minimum wage for fast food workers in both New York City and New York State. In all, about 24 municipalities have increased their minimum wage above their states minimum wage.

List of states increasing their minimum wage:

Alaska: $8.75 to $9.75
Arkansas: $7.50 to $8.00
California: $9.00 to $10.00
Colorado: $8.23 to $8.31
Connecticut: $9.15 to $9.60
Hawaii: $7.75 to $8.50
Massachusetts: $9.00 to $10.00
Michigan: $8.15 to $8.50
Nebraska: $8.00 to $9.00
New York: $8.75 to $9.00
Rhode Island: $9.00 to $9.60
South Dakota: $8.50 to $8.55
Vermont: $9.15 to $9.60
West Virginia: $8.00 to $8.75

 

 

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