Minimum Wage

Twenty-six states in United States will raise minimum wage in 2022. Workers are expecting to get significant pay gains form their employers.

After a decade long struggle, U.S. workers will finally get a wage hike during this year. Many worker organizations were pushing for at $15 minimum wage and their efforts are finally successful. Amid high inflations and increased cost of living, activists were raising voice for a significant wage increase for workers. 2022 is set to be very expansive for citizens with inflation at its highest levels in the past 40 years.

California Wage Increase

California State struggled the most since pandemic started and its employers are finding it difficult to attract workers. Therefore, California is set to have the highest statewide minimum wage in the United States in 2022. The increased wage will be $15 per hour. There is a $1 per hour increase since last year. However, this is applicable only on employers having 26 or more employees. The minimum wage is $14 for employers having less than 26 workers. But, they need to increase the wage to $15 per hour in 2023.

Wage Increase Among Other Counties

In addition, $15 an hour went into effect in at least three New York counties. They include Westchester, Suffolk and Nassau. New York City implemented $15 an hour wage rate a couple of years ago. Seattle is the city with the highest minimum wage at $17.27 an hour and it came into effect since start of 2022. Virginia employees witnessed the highest increase in terms of percentage. The minimum wage an hour went from $9.5 to $11 on Jan 01, 2022.

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    Eight states raised the minimum wage across their state based on cost-of-living increases reported in the Consumer Price Index. These states include Arizona, Colorado, Maine, Washington, Minnesota, Montana, Ohio and South Dakota.

    Federal Minimum Wage Rate is Way Behind

    The federal minimum wage applicable on most private employers is $7.25 an hour since 2009. That comes out to roughly $15,000 a year for someone working 40 hours a week. President Joe Biden sought to increase the federal minimum wage to$15 in a 2021 pandemic relief package. However, the proposal was scrapped by parliament and legislation couldn’t be passed through the budget reconciliation process.

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