In New Mexico, the minimum wage will increase to $ 10.50, $ 1.50 more than the current wage of $ 9. And in California, the rate for employers with 26 or more workers will rise from $ 13 to $ 14 an hour, the highest statewide baseline in the country. In Minnesota, the payoff is only 8 cents, to $ 10.08 an hour for large employers. (Move your mouse down To see a complete list of changes).
Although some of the state’s new increases were in place years ago, they carry additional significance now, as low-wage workers have been hit hard by the coronavirus pandemic.
“We have a lot of low-wage workers working during the Covid crisis, and many of them are in jobs that are more vulnerable to transmission,” said Ken Jacobs, head of the University’s Center for Labor and Education Research. California-Berkeley. “This would be a very welcome boost for them. Also, a lot of families are now struggling with this crisis.”
Ben Zieberer, an economist at the Economic Policy Institute, a progressive think tank, said that workers’ needs are greatest during an economic downturn because with so many people out of work, they have little bargaining power, and employers are able to maintain Wages are low.
Commercial interests are in decline
Meanwhile, some lawmakers and business organizations have called for a halt to planned minimum wage increases, citing the burden on small businesses that are already struggling.
In New York, Republican Senators urged Governor Andrew Cuomo to halt planned increases due to take effect on Thursday.
“New York is gradually implementing minimum wages over many years, and it’s not all in one fell swoop,” Evercore ISI economist Ernie Tedeschi told CNN Business by email. “Moreover, and this is the most important point. The timeline for increases in New York’s minimum wage has been known for years now, and companies have been planning and anticipating increases all the time.”
Starting Thursday, the state’s minimum hourly wage will increase 70 cents to $ 12.50 an hour. Minimum wage rates in suburban Long Island and Westchester County will rise to $ 14 an hour from $ 13 an hour. (The minimum is already set at $ 15 in New York City.)
Some states will have to wait
For the 20 states that will raise the minimum wage, the effects should ultimately be more positive than negative, said Zipper of the EPI.
“Redistributing the money to lower-wage workers is a smart policy, because they will spend it,” he said. “This shortfall will aid the consumer demand that our economy now faces.”