PREBLE COUNTY — Ohio workers currently earning minimum wage will see a small boost in their rate of pay come January 1, as the state’s minimum wage is raised from $8.10 to $8.15 per hour.
Nineteen states will raise their minimum wages in the coming year because of ballot measures or legislation passed in 2016 and previous years. Three additional states and the District of Columbia have scheduled increases or an annual cost of living adjustment coming in July 2017.
Ohio’s wage increase comes due to a constitutional amendment passed in 2006 which raises the amount based on the inflation rate. The federal minimum wage is currently set at $7.25 per hour, a rate last established in 2009.
In addition to Ohio, states with indexed cost of living adjustments which took effect Jan. 1, include:
- Alaska increases to $9.80
- Florida increases to $8.10
- Missouri increases to $7.70
- Montana increases to $8.15
- New Jersey increases to $8.44
- South Dakota increases to $8.65
Maryland, Oregon and the District of Columbia have increases scheduled for July 1, 2017, and Nevada’s annual cost of living adjustments are effective July 1.
Other Jan. 1 minimum wage increases include Arizona, which increases to $10, with future increases to $12 by 2020 and indexed for annual cost of living increases starting in 2021; Arkansas, which increases to $8.50.
Colorado increases to $9.30 on Jan. 1 with future increases to $12 by 2020 and indexed starting in 2021; Connecticut increases to $10.10, Hawaii increases to $9.25, with an increase to $10.10 in 2018. Maine increases to $9 with future increases to $12 by 2020 and indexed starting in 2021. Massachusetts increases to $11 and Michigan increases to $8.90, with an increase to $9.25 in 2018. Vermont increases to $10 on Jan. 1 with an increase to $10.50 in 2018 and indexed starting in 2019. Washington state increases to $11 with future increases to $13.50 by 2020 and indexed starting in 2021.
California increases to $10.50 Jan. 1 with future increases to $15 by 2022. Small businesses in California with 25 employees or fewer will have an extra year to comply with increases, reaching $15 by 2023, and indexed for annual cost of living increases.
New York City increases to $11 on Dec. 31, $13 in 2017 and $15 in 2018 for businesses with 11 employees or more; it increases to $10.50 on Dec. 31, $12 in 2017, $13.50 in 2018 and $15 in 2019 for businesses with 10 employees or fewer.
Long Island and Westchester, New York increase to $10 on Dec. 31 with future increases of $1 a year until reaching $15 in 2021.
The rest of New York State increases to $9.70 on Dec. 31 with future increases to $10.40 in 2017, $11.10 in 2018, $11.80 in 2019 and $12.50 in 2020. Annual increases starting in 2021 will bring the rest of New York to $15 on a schedule to be determined based on cost of living and other indices.
Business for a Fair Minimum Wage, an advocacy group which seeks to see the minimum wage increased across the country, says business leaders believe increases will “boost consumer spending, lower employee turnover, and increase productivity and customer satisfaction – helping businesses thrive and strengthening local economies.”
More than 1,000 businesses and business organizations have signed the Business for a Fair Minimum Wage statement in support of raising the federal minimum wage to at least $12 by 2020.
Gary Johnson, President and CEO of AFI Contractors in Toledo, Ohio, said the five-cent increase in The Buckeye State is not enough.
“The high turnover, low-minimum wage model is bad for business, our economy and our communities. Ohioans need more than a nickel raise,” he said. “Passing a bigger, phased-in minimum wage increase, as other states have done, will give low-paying businesses time to adjust — and experience the varied benefits of higher wages like increased consumer spending, lower staff turnover, increased productivity and more satisfied customers.”