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Minimum wage will rise in 19 states starting Jan. 1
Data: National Employment Law Project; Map: Kavya Beheraj/AxiosWorkers in 19 states are in line for a raise when minimum wage increases take effect on New Year's Day.Why it matters: Beyond those earning minimum wage, these increases often push employers to raise salaries for workers higher up on the income ladder.The big picture: More than 8.3 million workers will see their pay go up on Jan. 1. That includes both those getting a direct increase and others indirectly affected when companies adjust wage ladders, according to an estimate from the progressive Economic Policy Institute. The extra boost comes at a time when rising prices are particularly punishing for the lowest earners.Another three states — Florida, Alaska and Oregon — are increasing their minimum wages later in the year.Stunning stat: For the first time, there will be more workers in states with a minimum wage of $15 an hour or higher than those with the federal minimum of $7.25.Between the lines: More than a decade ago, labor advocates' fight for a $15 an hour wage seemed radical — not so much anymore.By the numbers: Missouri and Nebraska will cross the $15 milestone on Jan. 1.Four states' minimum wage will rise to $17 or higher, for some or all of their workers, by the end of the year.These include Washington state, where the minimum is rising 2.8%, to $17.33; New Jersey, which will have a wage floor of $18.92 for long-term care workers, and New York City, Long Island and Westchester County in New York state ($17 for all workers).State of play: The 19 states that are raising their minimum wage on Jan. 1 are: Arizona, California, Colorado, Connecticut, Hawai'i, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, Virginia and Washington state.Zoom in: Even if they're not at that milestone yet, many states and cities, both red and blue, raised their minimum wages far beyond the federal rate, which has been stuck at $7.25 an hour since 2009.Ohio's minimum wage will increase 2.8%, to $11, on Jan. 1.Arizona's is moving up 3.1%, to $15.15. Virginia's up 2.9%, to $12.77.Yes, but: 20 states, mostly in the South, still use the $7.25 an hour rate. Many states have passed so-called preemption laws that prevent cities from passing higher minimum wages.Some policymakers and business owners argue that higher minimum wages are costly for businesses and lead to less job growth.Reality check: These are still very low wages — high inflation has eroded the value of $15. The bottom line: The lowest wage earners in the country are getting some good news next year.
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