The federally mandated minimum wage is the lowest hourly wage that an employee is lawfully permitted to receive. The federal minimum wage has increased from $0.25 per hour to its current rate of $7.25 per hour. It did so gradually over a number of decades to accommodate for the expanding economy and the subsequent rise in the cost of living.
Where can you locate the federal minimum wage and what is it?
The federal minimum wage has remained unchanged at its present rate of $7.25 per hour since its implementation in 2009. It became necessary for each state to establish its own minimum wage as the cost of living and residents’ financial situations began to vary widely from one state to the next.
The federal government establishes a schedule for annual minimum wage increases, but individual states are free to establish their own. Local administrations are permitted to determine their own minimum wage requirements within the borders of each state.
In 2023, will there be an increase to the federal minimum wage?
There is presently no plan in place to increase the federal minimum wage; however, Congress is currently considering a bill that would increase the federal minimum wage. When the federal minimum wage is insufficient, states frequently set their own higher standards. In 2022, the minimum wage in 29 states and the District of Columbia exceeded the federal minimum wage threshold. In addition, 46 municipalities, such as Chicago, Los Angeles, and New York City, have approved minimum wages that are higher than the levels established by their respective states.
What Effect Does Inflation Have On Salaries?
As a primary customer-facing employer, you likely experience the effects of inflation. As the purchasing power of their compensation decreases, your employees, like your customers, may be forced to make adjustments to their lifestyle and financial decisions. As a direct result, a number of states are implementing measures to enhance their rates.
In response to the rise in inflation over the duration of 2022, at least seven states have chosen to increase their utah minimum wage 2023 hourly, according to the findings of SHRM. The minimum wage in Washington, D.C., and nineteen other states is automatically indexed for inflation to ensure that wages are commensurate with changes in the economy.
Minimum Wage Raises By State
In 2023, wage increases will affect more than fifty percent of the states in the United States. Some states have pledged to raise the minimum wage, including Connecticut, California, Delaware, Illinois, Florida, Michigan, Massachusetts, Missouri, Nevada, New Mexico, New Jersey, Rhode Island, and Virginia. New Jersey, New Mexico, and Rhode Island are additional states that have made a similar pledge. Consequently, California’s minimum wage is the greatest in the nation, while wages in Georgia and Wyoming are tied for the lowest.
Which states have a minimum wage above or equal to $15 per hour?
In 2023, the minimum wage will increase to at least $15 in California, Connecticut, Massachusetts, and the District of Columbia. These states will be joined between 2024 and 2026 by Delaware, Florida, Illinois, Maryland, New Jersey, Rhode Island, and Virginia, as each of these states has passed legislation committing to a more significant increase.
