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The bill would have amended the Fair Labor Standards Act of 1938 (FLEA) to increase the federal minimum wage for employees to $10.10 per hour over the course of a two-year period. The results provided evidence that raising minimum wage has support across party lines.
Minimum Wage Will Increase In Majority Of U.S. States In 2020. California will raise its minimum wage rates by $1 on January 1 ($12.00 per hour for employers with 25 employees or fewer, and $13.00 per hour for employers with 26 employees or more), while the highest state rate will remain in Washington at $13.50 per hour
The minimum wage is scheduled to increase to $15.00 on July 1, 2020. The minimum wage for tipped employees is $4.45, and is scheduled to increase to $5 per hour on July 1, 2020. Starting in 2021 both wage rates will be adjusted based on inflation.
Voters passed Issue 5 in 2018 to schedule a series of wage increases. Effective January 1, 2020, the minimum wage increased to $10.00 and will increase to $11.00 in 2021.
Seven more states Alaska, Florida, Minnesota, Montana, Ohio, South Dakota, and Vermont have automatic cost-of-living adjustments that will take effect on Jan. 1. Three more states and the District of Columbia have wage increases scheduled to take effect over the course of 2020.
Minimum wage to increase in 26 states in 2020. The minimum wage will increase in 26 states and the District of Columbia in 2020, with 22 states enacting an increase on Jan. 1, according to a report released by Wolters Kluwer Legal & Regulatory U.S. Texas is not among the states that raised its minimum wage.
Many business leaders fear that any increase in the minimum wage will be passed on to consumers through price increases thereby slowing spending and economic growth, but that may not be the case. They also observe that small minimum wage increases do not lead to higher prices and may actually reduce prices.
The Minimum Wage and Prices. The minimum wage acts like a tax on businesses, and they act accordingly. For example, she concluded that a 10 percent increase in the minimum wage would increase food prices by up to 4 percent and overall prices by no more than 0.4 percent.
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