Over half of US states will increase their minimum wage in 2022

Harry Wilmerding, DCNF

Over half of the states in the U.S. will institute a minimum wage increase in 2022, according to a report.

A total of 26 states will raise the minimum wage in 2022, with 22 of the states starting the pay hikes on Jan. 1, accordingto payroll experts at Wolters Kluwer Legal & Regulatory U.S.

“These minimum wage increases indicate moves toward ensuring a living wage for people across the country,” Deirdre Kennedy, senior payroll analyst at Wolters Kluwer, said in the report. “In addition to previously approved incremental increases, the change in presidential administration earlier this year and the ongoing coronavirus pandemic have also contributed to these changes.”

West Hollywood, California, will see the largest minimum wage increase, with hotel workers set to earn at least $17.64 per hour starting on Jan. 1, according to the report. California and New York have the highest minimum wages in the nation, $15 per hour.

Ten additional states, including Connecticut and Massachusetts, plan to hike their minimum wage to $15 per hour by 2023, according to the report. New Jersey targets a minimum wage hike by 2024, while Delaware, Illinois, Maryland and Rhode Island expect wages to increase by 2025.

Companies have already begun to boost their wages to retain workers in a tight labor market, CNBC reported.

Amazon has had a $15 per hour minimum wage since 2018, and it began offering new hires an average of $18 per hour in September, CNBC reported. Costco hiked its minimum wage to $17 an hour in October. T-Mobile also announced that it would pay its roughly 75,000 person workforce at least $20 an hour, CNBC reported.

“It’s a job-seekers’ market, which means competition to keep and find top talent is competitive — and as a great employer, we like it that way,” T-Mobile chief executive Mike Sievert wrote in a letter to employees announcing the latest increase, according to CNBC.

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