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2021: The Year of Minimum Wage Hikes?

 

Although we are still a few days away from the start of 2021 and while it is early in the ballgame, perhaps there is no time like the present to christen 2021 as the year of minimum wage hikes across the country.

Why might 2021 be the year of minimum wage hikes?  Take for instance the fact that 20 states will raise minimum wage rates on January 1st.  Of note, those 20 states do not occupy one part of the country or “traditionally” employee friendly states such as New York, New Jersey, or California.  In fact, on January 1st, Alaska, Arizona, Colorado, Montana, South Dakota, Illinois, Florida, and Maine, among others, will raise their hourly pay rates.  There are of course a few notable “outcasts”, such as Texas, which are still holding steady at $7.25/hour (the federal minimum wage rate.)  However, with nearly half the country bumping up minimum wage rates on Friday, the tide is certainly starting to turn in favor of increasing wage rates for employees.  At this point, I do not see that momentum curtailing anytime soon.

As well, ballot measures raising minimum wage rates have proven to be successful.  Look no further than voters in Florida voting (narrowly) this past November to raise the minimum wage rate in the state.  Will other states follow suit?  I do not see why not.  While Florida enjoyed higher voter turnout during the 2020 Presidential election, with the right ballot measure (and electorate), similar ballot measures in non Presidential election years could be successful.  I think it is certainly likely that we will see another state attempt a similar ballot measure over the next few years like the one Florida had this year.

Last, but certainly not least, with the new administration taking office in January, increasing the federal minimum wage rate will likely be a key policy proposal.  Depending upon the outcome of the upcoming special elections for the two Georgia Senate seats, Democrats might have majority control of the House, Senate, and White House and therefore be able to increase the federal minimum wage rate over the objections of Republicans.  However, should Republicans maintain majority control of the Senate, the incoming administration could still seek to reach a compromise on increasing the federal minimum wage rate or instead focus on helping individual states increase minimum wage rates at the local level.

For those that have backed the Fight for $15 and related minimum wage movements, 2021 just might be your year.


For additional information:  https://finance.yahoo.com/news/20-states-minimum-wage-increases-2021-204034392.html

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