On 7-1-2021, the minimum wage for fast-food workers will be $15 statewide. $5.49, effective 1-1-2018* / $6.06, effective 1-1-2019. If they are not reauthorized, the annual indexing provisions will take effect from the $12.00 minimum wage level established on 1-1-2023. St. Louis enacted its own minimum wage in 2015 by city ordinance.*. Annual increases based on the calendar-year increase in the CPI-W for the Washington-Baltimore region, beginning July 1, 2022. $5.13, effective 1-1-2022 / Annual indexing beginning 1-1-2025. Privacy Policy • Contact Us. ), Same as the regular minimum wage. There is a strong Biblical, ethical, and economic basis for fair wages. Beginning 10-1-2019, workers ages 17 and younger may be paid $10.10 per hour or 85% of the state minimum wage, whichever is greater, for the first 90 days of their employment. Sections of this page. If a just economy based on fair wages is a measure of how righteous we are as a people, we fall far short. At $5.15 an hour, they receive just $876 a month for full time work. Subsequently, after the November election, the legislature amended the legislation so that the tipped minimum wage would remain equal to 38% of the regular minimum wage. “Gradually Raising the Minimum Wage to $15 Would Be Good for Workers, Good for Businesses, and Good for the Economy: Testimony before the U.S. House of Representatives Committee on Education and Labor.” Economic Policy Institute, 7 Feb. 2019, Accessed 21 March. At that point, tipped employees will receive the regular minimum wage before tips. Indiana’s minimum wage is set equal to the federal minimum wage by statute. The Economic Policy Institute stated that a minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-year phase-in period. $6.15, effective 1-1-2022 / $6.75, effective 1-1-2023, $10.10, effective 1-1-2022* / $10.33, effective 1-1-2023 / $10.56, effective 1-1-2024 / $10.80, effective 1-1-2025 / $11.04, effective 1-1-2026 / $11.29, effective 1-1-2027 / $11.54, effective 1-1-2028 / $11.79, effective 1-1-2029 / $12.05, effective 1-1-2030. Prior to July 1, 2019, these tipped minimums were set as percentages of the regular minimum. ), $14.25, effective 7-1-2021 / $15.00, effective 7-1-2022 / Annual indexing beginning 7-1-2023. Portland’s ordinance also requires that employees be paid 1.5 times the minimum wage rate for work performed during an emergency declared by the state or city if that emergency applies to the employee’s geographical workplace. (2018), and from the Current Population Survey Outgoing Rotation Group (CPS-ORG) from the U.S. Census Bureau to estimate the impact of proposed changes in federal, state, and local minimum wages. $12.55, effective 1-1-2022 / Annual indexing beginning 1-1-2023. Hotel workers and restaurant waitstaff are subject to a tipped minimum wage of $6.38 per hour. The minimum wage applies to adult and minor employees who work two or more hours per week. Annual increases based on the August-to-August percentage change in the CPI-W, U.S. city average, beginning 1-1-2021. Pro 1 Raising the minimum wage would increase economic activity and spur job growth. The federal minimum wage has … *Benalillo County’s minimum wage is superseded by the higher state minimum wage in 2021. The city ordinance sets a tipped minimum wage at 50% of the city’s regular minimum wage. $4.25, effective 7-1-2016* / $5.05, effective 7-1-2017 / Annual indexing beginning 7-1-2018. North Dakota’s tipped minimum wage is set at 67% of the regular minimum wage. Annual increases based on the percentage change in the CPI-U for the Anchorage metropolitan area. According to forthcoming analysis by the Economic Policy Institute, gradually raising the minimum wage to $15 would increase wages for nearly 32 million workers. The minimum wage will not increase when Chicago’s unemployment rate is greater than 8.5% for the preceding year. Raising the federal minimum wage to $15 by 2025 would lift wages for over 33 million workers. $14.50, effective 7-1-2021 / $14.75, effective 7-1-2022 / Annual indexing beginning 7-1-2023. Amusement parks and recreational establishments are required to pay only 85% of the regular minimum wage. Annual increases based on the lesser of 5.0% or the annual percentage change in the CPI. $15.87, effective 1-1-2022 / Annual indexing beginning 1-1-2023. On January 1, 2022, the small employer minimum wage will be increased by the percentage change in the CPI. *, Tacoma enacted its own minimum wage in 2015 by ballot measure*. This rate applies to all tipped workers except those in the fast-food industry, who are subject to a separate minimum wage schedule. Santa Monica’s minimum wage schedule applies to businesses with at least 26 employees. The Economic Policy Institute staff is unionized with the Annual increases based on the calendar year percentage change in the CPI-U for the San Francisco-Oakland-San Jose metropolitan area, rounded to the nearest 5 cents. The St. Louis ordinance went into effect on May 5, 2017, raising the city’s minimum wage to $10.00. Santa Clara updated its minimum wage in 2017 by city council ordinance. Smaller businesses will be subject to the same minimum wage rates and raise schedule, delayed by one year (e.g., $14.25 in July 2020 and reaching $15.00 in July 2021). $11.15, effective 1-1-2022 / $12.00, effective 1-1-2023 / Annual indexing beginning 1-1-2024*, Annual increases based on the July-to-July percentage change in the CPI-W, U.S. city average, rounded to nearest 5 cents, beginning 1-1-2024. $6.50, effective 1-1-2022 / $7.00, effective 1-1-2023 / $7.50, effective 1-1-2024 / Annual indexing beginning 1-1-2025. Reward essential workers. By adopting the initiative, the legislature removed the measure from the ballot. Annual increases based on the August-to-August percentage change in the CPI-W, U.S. city average. Employers who pay at least $1.50 per hour toward an employee medical benefits plan may pay $1.50 less than the applicable minimum wage. Non-urban counties’ rate is then set to $1.00 less than the state’s base rate. Annual increases based on the June-to-June change in the employment cost index for wages and salaries of all civilian workers. Minimum wage of $4.00 applies to all businesses that have gross annual sales less than $110,000 and that are not covered by the Fair Labor Standards Act. The governor allowed that bill to go into effect in July 2017, thereby lowering the city’s minimum wage back down to $7.70 until a statewide ballot measure raised the state minimum wage to $8.60 in January 2019. $6.28, effective 1-1-2022 / Annual indexing beginning 1-1-2023. As of 2014, it is set at the fixed amount of $3.63 per hour and will no longer automatically go up as the regular minimum wage increases. 38 The Economic Policy Institute projected that a … Set at $3.00 per hour less than the regular minimum wage. Birmingham enacted its own tipped wage in 2015 by city council ordinance. The Economic Policy Institute staff is unionized with the However, the state legislature subsequently passed a new preemption law to undo the St. Louis increase. Annual increases based on the lesser of 3.5% or a percentage amount equal to the August-to-August percentage change in the CPI for the San Francisco-Oakland-San Jose metropolitan area. Beginning January 1, 2024, the large business minimum wage will apply to all businesses. State law establishes separate minimum wage rates for the Portland Urban Growth Boundary area and designated non-urban counties. economic policy institute • december 19, 2013 • briefing paper #371 raising the federal minimum wage to $10.10 would lift wages for millions and provide a modest economic boost by david cooper economic policy institute • 1333 h street, nw • suite 300, east tower • … Authoritative, up-to-date data on the living standards of American workers. Here's how it impacts your workplace—and our democracy. The Fair Labor Standards Act excludes any business with gross annual revenue less than $500,000 whose employees do not engage in “interstate commerce.” It also contains a variety of smaller occupational exclusions, such as those for telephone switchboard operators, private investigators, and babysitters. Workers under age 19 who work no more than 20 hours per week are exempt from the county minimum wage. In the U.S. today, the poor, needy, and marginalized include workers paid the minimum wage. The city ordinance specifies the following schedule: $5.00, effective 5-5-2017; $5.50, effective 1-1-2018; annual indexing beginning 1-1-2019. All others subject to federal minimum. The law applies to adult and minor employees who work two or more hours per week for a business that is subject to the Belmont Business License Tax OR that maintains a facility in Belmont. The minimum wage as listed applies to businesses with 26 or more employees. Mountain View updated its minimum wage law on November 10, 2015, by city council ordinance. $10.10 Minimum Wage Same as the regular minimum wage. Employers with 20 or fewer employees have a minimum wage of $13.50. Birmingham enacted its own minimum wage in 2015 by city council ordinance. Annual increases of the smaller of 5% of the current minimum, or the August-to-August percentage change in the CPI-U, U.S. city average. For tipped workers at small employers (500 or fewer employees), small employers may credit a portion of tips against the minimum wage, resulting in an effective tipped minimum wage of $15.00 in 2021. The Chicago Minimum Wage Ordinance raises the city’s minimum wage annually by the rate of inflation, with a cap of 2.5%. *The Missouri state legislature passed a law in September 2015 preempting local governments from adopting minimum wages above the state’s minimum wage. Pasadena enacted its own minimum wage in 2016 by city council ordinance. $12.00, effective 7-1-2021 / $12.50, effective 7-1-2022 / Annual indexing beginning 7-1-2023. Jobs at EPI The minimum wage for these workers is: $8.50, effective 1-1-2021; $9.25, effective 1-1-2022; $10.50, effective 1-1-2023; $12.00, effective 1-1-2024; and $13.00, effective 1-1-2025. This rate applies to all tipped workers except those in the fast-food industry, who are subject to a separate minimum wage schedule. Iowa’s minimum wage is set at the higher of $7.25 or the current federal minimum wage. Businesses with fewer than 26 employees are subject to the listed minimum wage one year after the effective date for larger businesses. Research and Ideas for Shared Prosperity. economic policy institute • march 13, 2013 • briefing paper #357 raising the federal minimum wage to $10.10 would give working families, and the overall economy, a much-needed boost by david cooper and doug hall economic policy institute • 1333 h street, nw • suite 300, east tower • washington, dc 20005 • 202.775.8810 • www.epi.org Subsequently, after the November election, the legislature amended the legislation so that the minimum wage will reach $12 by 2030—eight years more slowly—with no further automatic inflation adjustments. Los Angeles County enacted its own minimum wage in 2015 by county ordinance. Kentucky’s minimum wage is set at the higher of $7.25 or the current federal minimum wage. The Economic Policy Institute Minimum Wage Simulation Model uses microdata from the American Community Survey (ACS), compiled by Ruggles et al. Fremont enacted its own minimum wage in 2019 by city council ordinance. Annual increases based on the July-to-July percentage change in the CPI-W, U.S. city average, rounded to nearest 5 cents, beginning 1-1-2021. Annual increases based on the August-to-August percentage change in the CPI-W. Seattle enacted its own minimum wage in 2014 by city council ordinance. *On March 30, 2017, Iowa’s governor signed HF 295, a bill that nullified Wapello County’s minimum wage ordinance, and preempted any local government in Iowa from establishing any minimum wage higher than the state minimum wage. Los Altos enacted its own minimum wage in 2016 by city council ordinance. *The Missouri state legislature passed a law in September 2015 preempting local governments from adopting minimum wages above the state’s minimum wage. The county ordinance applies to businesses outside the incorporated boundaries of the City of Santa Fe. Los Angeles enacted its own minimum wage in 2015 by city council ordinance. The city ordinance specifies the following schedule: $10.00, effective 5-5-2017; $11.00, effective 1-1-2018. The North Carolina minimum wage is set equal to the federal minimum wage by statute. This lowered the effective minimum wage in Linn County from $8.25 down to $7.25. Employers with 500 or fewer employees are subject to a minimum wage of $15.75, provided covered employees receive tips or employer contributions toward medical benefits equivalent to at least $1.69 per hour. The Missouri tipped minimum wage is set at 50% of the regular minimum wage. *Prince George’s County’s minimum wage is superseded by the higher state minimum wage in 2021. Cook County enacted its own minimum wage ordinance in 2016. This credit will be gradually reduced (thereby raising the tipped minimum) until tipped workers at small businesses receive the full minimum wage by 2022. This lowered the effective tipped minimum wage in Wapello County from $4.92 down to $4.35. Idaho’s minimum wage is set equal to the federal minimum wage by statute. The city’s tipped minimum wage was set to be equivalent to the state tipped minimum wage policy, so the preemption of the city ordinance is irrelevant. All workers must be paid at least the state minimum wage regardless of health care or child care benefits. Once fully phased in, this translates into an annual pay increase of about $3,300 for the average affected year-round worker. The Sunnyvale City Council updated its minimum wage ordinance in 2016. How do taxes and spending work, and where do you fit in? Annual increases based on the previous year’s percentage change in the CPI-W for the West census region. Economic Policy Institute, Washington, District of Columbia. Board of Directors $5.58, effective 1-1-2022 / $6.00, effective 1-1-2023 / Annual indexing beginning 1-1-2024*. SeaTac’s minimum wage applies only to hospitality and transportation workers within the city. The federal minimum wage is just $7.25 and has not increased since 2009. “CPI-U” refers to the Consumer Price Index for all Urban Consumers, as calculated by the Bureau of Labor Statistics. Nassau, Suffolk, and Westchester Counties. Annual increases to the state’s base minimum wage are based on the March-to-March change in the CPI-U, U.S. city average, rounded to nearest 5 cents. Malibu enacted its own minimum wage in 2016 by county ordinance. The minimum wage as listed applies to businesses with 26 or more employees. Both minimum wages will be automatically adjusted for inflation in each subsequent year. Minneapolis enacted its own minimum wage in 2017 by city council ordinance. There’s an inherent imbalance of bargaining power between employers and employees. The Economic Policy Institute stated that a minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-year phase-in period. When the regular minimum wage was increased in 1996, the tipped minimum wage was fixed at $2.13. The region’s minimum wage is to be set at $1.00 less than the state’s base minimum wage when indexing begins on July 1, 2023. Indexed schedule (to reach but not exceed $15.00 per hour) to be set by the Director of the Division of Budget in consultation with the Department of Labor. For businesses with 11 to 50 employees: $13.25, effective 7-1-2020; $14.00, effective 7-1-2021; $14.50, effective 7-1-2022; $15.00, effective 7-1-2023. Annual increases based on the percentage change in the CPI-U for the Midwest region for the preceding calendar year. The minimum wage listed applies to employers with 21 or more employees. *Tacoma’s city minimum wage was superseded by the state minimum wage on 1-1-2020. According to the Economic Policy Institute, 21 states raised their minimum wages at the start of 2020. $9.25, effective 1-1-2018* / $10.25, effective 1-1-2019. Kansas’s tipped minimum wage is set equal to the federal tipped minimum wage by statute. Businesses of different sizes have different raise schedules. Belmont enacted its own minimum wage in 2017 by city council ordinance. Santa Fe’s minimum wage law is similar to “living wage” laws in other cities that require any business under contract with the city government to pay a determined “living wage.” Santa Fe, however, extends this requirement to any business granted a business license to operate within city limits. 1225 Eye St. NW, Suite 600 The most recent analysis from the Economic Policy Institute found that increasing the minimum wage to $15 by 2025 would generate $107 billion in … 133K likes. Employers with fewer than 26 employees will be subject to a minimum wage of $14.00, effective 1-1-2021. The law provides the city manager with the ability to temporarily pause the raises in the event of significant declines in state sales tax revenue and employment, with specific requirements outlined in the ordinance. The city ordinance specifies the following schedule: $8.50, effective 8-24-2015; $9.82, effective 1-1-2017; $10.96, effective 1-1-2018; $11.98, effective 1-1-2019; $13.00, effective 1-1-2020; annual indexing beginning 1-1-2021. *On March 30, 2017, Iowa’s governor signed HF 295, a bill that nullified Wapello County’s minimum wage ordinance, and preempted any local government in Iowa from establishing a minimum wage higher than the state minimum wage. EPI is an independent, nonprofit think tank that researches the impact of economic trends and policies on working people in the United States. FACT SHEET It’s Time to Raise the Minimum Wage This fact sheet draws upon data tables from Raising the Minimum Wage to $12 by 2020 Would Lift Wages for 35 Million American Workers, a forthcoming paper by David Cooper of the Economic Policy Institute. 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