As the federal minimum wage debate heats up, the real challenge for employers could be at the state level, if a dozen pending measures to increase state minimum wages gain traction.
The proposals share DNA with federal measures being pushed by President Obama and congressional Democrats — to raise the minimum wages and in many cases prospectively index the rate to inflation to ensure wages keep pace with the cost of living for employees. Obama has publically pushed for a minimum wage increase from $7.25 to $9.00 per hour; one bill introduced in Congress proposes a $10.10 minimum wage phased in over three years .
Given the current political climate in Washington any drastic changes to the federal minimum wage are not imminent. But some employers could be faced with rising local wages long before their neighbors in other states based upon increased legislative activity in 12 state legislatures.
States that are currently debating the merits of a higher, indexed minimum wage include: California, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York and Pennsylvania. Some states already pay higher rates than the federally mandated one, but even higher minimum wages are being proposed. The bills would raise wages to between $8.25 and $10.55 per hour.
The chances of the proposals passing varies widely from state to state, but in some states like New York the measures are showing considerable traction.
For more information about the minimum wage debate check out Thompson’s HR Compliance Expert.