Certain States Institute Big Jumps in Minimum Wage Rates for 2018
by: The Knowledge Group
There’s been a lot of talk about how companies are giving employees a bonus in 2018 as a result of the new tax laws passing. However, one of the big wage changes that is just starting to hit the newspapers is the fact that the basic state minimum wage in many states is also increasing, and in some cases substantially.
Minimum wage is more than just an earnings marker for teenagers in their first part-time job at the local fast food joint. It’s also a very real benchmark of basic earnings for millions of people who support, provide and work in various part-time and fulltime entry level positions around the country. In fact, some 4.5 million American employees are impacted by any kind of national change to minimum wage, and any state changes add on top of this requirement per hour of work. Interestingly, while the federal minimum wage has remained stagnant at $7.25/hour states have been extremely active with higher levels mandated locally.
The minimum wage increases will be realized in 18 different states, irrespective of the 2018 tax law changes. Beginning the first day of the year in some states, minimum wage levels will change anywhere from 50 cents/hour to as much as $1/hour. Some of the bigger increases include:
|State||Original Wage Level||New Wage Level|
Now granted, to those working in full-time salary jobs $0.50 or $1 doesn’t seem like much of a wage increase, but when a person is working two minimum wage jobs to make ends meet or is relying on one, the bump is a huge jump in buying power.
Unfortunately, it’s a temporary advantage as many commodity businesses eventually raise their pricing to take advantage of increased buying power at the lowest level. But for a time, the bump will make 2018 a good year for the worker.