Minimum Wage 2023 Federal – The term “minimum wage” refers to the lowest allowable hourly wage paid by an employer to their employees. Most nations have minimum wages established by law, though these minimums often differ.
Improved economic security for workers and their families is a typical result of raising the minimum wage. Consumers will see higher prices, and businesses will have to fork over more cash to keep their staff happy. Workers may not be able to make ends meet on a lower minimum wage, but consumers benefit from lower prices.
On October 1, 2018, California’s minimum wage will increase to $9.30 per hour. The minimum wage in Colorado is increasing to $7.25 per hour, while the minimum wage in New Mexico is increasing to $12 per hour. Most states, however, have not yet established a statewide minimum wage. Increases tied to inflation may also be capped under the laws of a number of states. In some states, like California, these have helped to moderate price increases.
The state of California has raised its minimum wage to $9.30 per hour. As of 2023, all California businesses must pay their employees at least $15 per hour under a law that was passed in 2016. The minimum wage is set to increase in two stages under the new law, with the first increase taking effect on January 1, 2022, and the second on January 1, 2023. But Governor Jerry Brown has indicated he may delay the hikes under certain conditions. Minimum wages are mandated by law and must be indexed annually to account for inflation.
The CPI-W for the San Francisco-Oakland-San Jose MSA is used to determine annual increases to the state minimum wage. Workers will receive the new, higher minimum wage amount following the annual CPI-W index adjustment. Rates in rural areas are initially set at $1.00 below the state base rate before being indexed.
The new state minimum wage in Colorado is $9.30. Voters in Colorado approved Amendment 70 earlier this year, increasing the state’s minimum wage to $9.30 per hour. Starting in 2019, the hourly rate will increase by 90 cents, bringing it to $12 by 2020. After that, it will go up to reflect inflation.
The Consumer Price Index for All Urban Consumers (CPI-U) will be used annually to determine increases or decreases in the state’s minimum wage. The state minimum wage is $1.00 lower in rural counties than in urban ones. After 2023, the state’s minimum wage will be adjusted for inflation.
In 2023, the minimum wage will increase in about a dozen states, and in twice as many cities and counties. Inflation-based state and local laws will trigger the increase. In these areas, inflation is expected to be very high, which could lead to the rise of a dollar or more in the hourly wage.
The minimum wage in Maryland has risen to $7.25 per hour. A bill that would raise Maryland’s minimum wage to $7.25 per hour by 2023 has been recently approved by the state legislature. In July 2017, the governor signed the bill into law. As far as we know, this is the first minimum wage increase in the state since 2009. It’s now official and in effect. Equally important, the bill creates a system of paid family leave for all employees.
Inflation in the Washington, DC, and Baltimore metropolitan areas (commonly known as the CPI-W) will be used to determine the rate of increase. Maryland’s minimum wage will increase to $7.25 per hour in 2022.
The hourly minimum wage in New Mexico has increased to $12. The state legislature in New Mexico has just raised the minimum wage. The first wage increase, of $9 per hour, will take effect in the year 2020. Workers who rely on tips will also see an increase in the state’s minimum wage. Some people are opposed to the measure. Groups like New Mexico’s restaurant association are speaking out against the price hike.
Companies with employees in more than one state should pay special attention to these alterations. As of this writing, the federal minimum wage has not increased since 2009. However, on or after January 1, 2022, the minimum wage in nearly half of U.S. states will increase. The minimum wage in over a dozen states will go up even more in 2023.
The state of Rhode Island has raised its minimum wage to $12 per hour. In spite of the fact that raising the minimum wage is a noble goal, doing so would have significant consequences. When the minimum wage is raised, it can force some companies to shut down, which in turn can lead to an increase in unemployment. The state’s budget deficit may widen if the minimum wage is raised while it is still trying to recover from the recent coronavirus pandemic.
The minimum wage increase has been mandated by legislation. Employers in Rhode Island must pay their staff at least the federal minimum wage in accordance with General Law SS28-12. In addition, employers have a responsibility to compensate workers under the age of 20 at a higher weekly rate if those workers put in any time at all during the workweek.
An overwhelming majority of respondents to a recent Pew Research Center survey agreed that the minimum wage should be $15 per hour. Increasing the minimum wage is seen by many as a way to help them escape poverty. While the survey’s findings aren’t set in stone, they do reflect the widespread agreement that raising the minimum wage can help bring unemployment down and boost the economy’s recovery.