Half of U.S. states raising minimum wage in 2022
Minimum-wage workers across much of the country are set to see bigger paychecks this year as 25 states and the District of Columbia phase in higher wage requirements for employers.
Most of those 26 jurisdictions have bumped the federal minimum wage of $7.25 an hour for non-tipped workers, which hasn’t been increased since 2009, to at least $10 an hour.
The laws took effect in 20 states on Jan. 1. Another three states will raise the rate on July 1, and Florida will do so on Sept. 30. New York raised its minimum wage from $12.50 to $13.20 per hour on Dec. 31.
Hans Dau, a supply chain analyst who runs the Mitchell Madison Group business consulting firm, said the increases will not affect many workers in most U.S. markets for this reason.
“Minimum wage laws are largely political theater as less than 1.5% of U.S. workers work at the minimum wage level,” Mr. Dau said. “There are few markets where minimum wage is a factor, and those probably employ much of the well over 5% of the workforce that is in the U.S. illegally.