Entry-level workers across much of the country will see bigger paychecks in 2022 as 25 states and the District of Columbia phase in higher minimum wage laws throughout the year.
Most of those 26 jurisdictions have bumped the federal minimum wage of $7.25 for non-tipped workers, which hasn’t been increased since 2009, to $10 an hour or more.
The new laws took effect in 20 states on Jan. 1; another three states will hike the rate on July 1 and the last state, Florida, will do so on Sept. 30. New York raised its minimum wage from $12.50 to $13.20 on Dec. 31.
Brian Marks, who teaches economics at the University of New Haven, said the hikes continue a 2021 “trend of legislatively scheduled state minimum wage increases” above the federal minimum wage for non-exempt employees.
But he said the hikes, intended to secure a living wage and incentivize people to seek jobs during the current worker shortage, may prove ineffective since the supply chain crisis and other pandemic factors have already led many employers to raise their minimum wage well above the new state targets.
“Most entry-level workers are already earning more than the minimum wage because employers are having to pay more during the pandemic to fill open positions,” Mr. Marks said. “For example, many fast-food restaurants are either already paying their employees above the minimum wage or are purchasing equipment like self-serve fountain drink machines to eliminate employees.”
In 48 states, the percentage of workers...
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