Are You A US Citizen? Get To Know Which States Have Increased Their Minimum Wage

The minimum wage rate typically required to be paid to employees conducting work on or in connection with covered contracts would increase to 16.20 dollars per hour as of January 1, 2023, according to a statement made by the United States Department of Labor last year.

While this is going on, the minimum cash wage that must be paid to tip-paying employees who typically work on or in conjunction with covered contracts will increase to 13.75 dollars per hour. As a result, millions more Americans have been qualified for raises in pay since the beginning of the year based on the article published by Marca.

The minimum wage has already increased in 23 states and Washington, DC, according to the research tank Economic Policy Institute (EPI). According to reports, there will be a pay raise of more than $5 billion, which might affect 8.4 million people. High inflation, according to Sebastian Martinez Hickey, a research assistant at the EPI, only serves to highlight how essential these hikes in the minimum wage are for employees. Before the pandemic, there was not a single county in the US where a single adult could live comfortably on $15 an hour.

Alaska, Arizona, Colorado, Connecticut, Delaware, Florida, Illinois, Maine, Nebraska, New Jersey, New York, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nevada, New Mexico, Ohio, Rhode Island, South Dakota, Vermont, and Virginia are among the states that have increased their minimum wages as of 2023.

Even though minimum wages may increase by 7%, labor costs won’t increase by nearly as much as they have in the past because they have already increased in many states and towns. That also implies that costs won’t increase at establishments like restaurants.