New year brings minimum wage hikes for Americans in 14 states

As part of a recommendation from the state’s wage board, fast food workers in New York City will have a $10.50 an hour rate.

These wage increases range from a 35 cents an hour in states like MI to a dollar in California, Massachusetts and Nebraska, CNBC reported.

As the United States marks more than six years without an increase in the federal minimum wage of $7.25 an hour, 14 states and several cities are moving forward with their own increases, with many taking effect on New Year’s Day.

Meanwhile, South Dakota had the smallest increase, a nickel, with the minimum wages per hour standing now at $8.55.

Elsewhere in New England, Vermont, Connecticut and Rhode Island will see their minimum wage rise to $9.60 an hour. More recent proposals by some lawmakers call for a federal minimum wage of up to $15 an hour.

The Restaurant Association claims that the industry needs half a decade to adjust to this year’s wage increases-for comparison, $5 in 2010 adjusted for inflation was $5.44 in 2015-but it seems unlikely that the governor will oblige.

Many are now in the midst of multi-year phase-in plans that will ultimately take them to between $10 and $15 an hour.

Numerous benefits from raising the wage, a move already undertaken by multiple governments around the country as well as some big-name companies, tend to go to higher-income families, said Neumark, who also pointed to research that shows raising wages kills jobs through higher costs to employers. “Other policies that directly address low family income, such as the earned income tax credit, are more effective at reducing poverty”.