Minimum Wage Workers to Ring in New Year With Salary Increases

As a year marked by labor shortages and workers gaining significant bargaining power comes to an end, 2022 appears to be setting up for more of the same. A National Employment Law Project (NELP) report reveals minimum wage workers in 21 states and 35 cities and counties will receive pay increases on or around January 1, according to USA Today.

A minimum wage of US$15 an hour or higher, which was unheard of just several years ago, is now becoming commonplace. California’s minimum wage will reach $15 for the first time on January 1 for large employers. New York state—already at $15 in New York City and for fast-food workers statewide—will extend that hourly amount to Long Island and Westchester County on December 31.

Since some governments will act later in the year, a total of 25 states and 56 localities—a record 81 jurisdictions—will lift their pay floors sometime in 2022, according to NELP.

In addition to California and New York, nine states are headed to a $15 pay base over the next four years: Connecticut, Delaware, Florida, Illinois, Maryland, Massachusetts, New Jersey, Rhode Island, and Virginia. They’ll join 50 localities at or on the way to $15, including Chicago, Minneapolis, and Washington, D.C.

By 2026, about 40% of the U.S. workforce will be covered by $15 minimum wage mandates, NELP figures show.

The federal minimum wage, however, has been stuck at $7.25 an hour since 2009.  Although 30 states with more than 60% of the U.S. workforce now have higher pay floors than the federal government’s, 20 states, mainly in the South and Midwest, rely on the federal minimum and are unlikely to set a higher base.

The following are some statewide minimum wage increases occurring in 2022:

• Arizona—$12.50 to $12.80
• California—$14 to $15 (large employers), $13 to $14 (small employers)
• Colorado—$12.32 to $12.56
• Delaware—$9.25 to $10.50
• Illinois—$11 to $12
• Montana—$8.75 to $9.20
• Maine—$12.05 to $12.75
• Maryland—$11.75 to $12.50 (large employers), $11.60 to $12.20 (small employers)
• Massachusetts—$13.50 to $14.25
• Minnesota—$10.08 to $10.33 (large employees), $8.21 to $8.42 (small employees)
• Missouri—$10.30 to $11.15
• New Jersey—$12 to $13
• New Mexico—$10.50 to $11.50
• New York—$12.50 to $13.20 (upstate)
• Ohio—$8.80 to $9.30
• Rhode Island—$11.50 to $12.25
• South Dakota—$9.45 to $9.95
• Vermont—$11.75 to $12.55
• Virginia—$9.50 to $11
• Washington—$13.69 to $14.49
• Connecticut—$13 to $14 (July 1)
• Nevada—$9.75 to $10.50 (no health insurance), $8.75 to $9.50 (health insurance) (July 1)
• Oregon—$12.75 to $13.50 (July 1)
• Florida—$10 to $11 (September 30)