HR Management & Compliance

State Actions Reshaping Minimum Wage Debate

A wave of state minimum wage increases and proposed bills is reshaping efforts to raise the federal minimum wage.

Dozens of states have taken up minimum wage bills over the last year, with five states — Connecticut, Delaware, Maryland, Minnesota and West Virginia — passing measures in the last few months.

According to the National Council of State Legislatures, 38 states have considered minimum wage bills during the 2014 session (as of April 8) and 34 states are considering increases to state minimum wages. At the beginning of 2014, 21 states and Washington D.C. had minimum wages higher than the federal rate of $7.25 per hour. A total of 19 states had wages the same as the federal minimum as of Jan. 1, 2014, and four had rates below the federal rate.

State Actions

The Connecticut state legislature voted to raise its minimum wage incrementally to $10.10 by 2017 in March; Maryland will raise its rate to $10.10 incrementally by 2018; and Minnesota goes from one of the lowest minimum wages to one of the highest with a vote to raise its rate to $9.50 by 2016. The Minnesota governor is expected to sign that states’ law into effect on April 14. All three states will move into the group of states with the highest minimum wages when the new rates are effective. Delaware’s minimum wage will increase to $8.25 by 2015; and West Virginia will increase its rate to $8.75 by 2016. See box for more details.

Several other states, including Hawaii, Arkansas, Nebraska and Illinois have debated or are currently debating raising state minimum wages. And several cities also have debated or voted to increase local wages. Seattle and San Francisco lead the race for the highest minimum wage, both are looking at a local wage possible as high as $15 per hour.

Washington and Oregon currently have the highest state minimum wages, at $9.32 and $9.10 respectively. California’s state rate will increase to $9.00 on July 1, 2014, with another increase to $10 slated for Jan. 1, 2016. New York also has incremental increases to its minimum wage scheduled. The wage there will go from $8.00 to $8.75 on Dec. 31, 2014, and then to $9.00 on Dec. 31, 2015.

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