DETROIT – Twenty-one states will be raising their minimum wage to ring in the new year, including Michigan where the minimum wage increases to $9.87 on Jan. 1, 2022.
Another four states and the District of Columbia have increases scheduled later in 2022. Business leaders across the country are speaking in support of the increases, saying they will boost consumer spending, increase productivity and employee retention, and help build a widely shared economic recovery, Business Leaders for a Fair Minimum Wage said in a press release.
In July, Delaware became the 10th state to enact a $15 minimum wage, with business owners around the state supporting the increase. The first step of the raise will take place on Jan. 1, 2022, when Delaware’s minimum wage increases from $9.25 to $10.50.
Scheduled increases for Dec. 31, 2021 and Jan. 1, 2022 include:
- California increases to $15 on Jan. 1, 2022. Small businesses with 25 employees or fewer have an extra year to comply, reaching $14 on Jan. 1, 2022 and $15 in 2023. After the minimum wage reaches $15 for all employees, it will be adjusted annually for cost of living increases.
- Delaware increases to $10.50 on Jan. 1, 2022, with future increases of $11.75 in 2023, $13.25 in 2024, and $15 in 2025.
- Illinois increases to $12 on Jan. 1, 2022, with future increases of $1 a year to reach $15 in 2025.
- Maryland increases to $12.50 on Jan. 1, 2022, with future increases to reach $15 in 2025. Small businesses with fewer than 15 employees reach $12.20 on Jan. 1, 2022, with future increases to reach $15 in 2026.
- Massachusetts increases to $14.25 on Jan. 1, 2022 and $15 in 2023.
- Michigan increases to $9.87 on Jan. 1, 2022. It is scheduled for small annual increases until reaching $12.05 in 2030 “or a subsequent calendar year.”
- Missouri increases to $11.15 on Jan. 1, 2022 and $12 in 2023, and then is indexed for the cost of living.
- New Jersey increases to $13 on Jan. 1, 2022, $14 in 2023, and $15 in 2024, and then is indexed. Businesses with fewer than six employees increase to $11.90 on Jan. 1, 2022 and rise gradually to $15 in 2026, with further increases to reach parity with the regular minimum wage in 2028.
- New Mexico increases to $11.50 on Jan. 1, 2022 and $12 in 2023.
- New York
o Long Island and Westchester increase to $15 on Dec. 31, 2021.
o Upstate New York increases to $13.20 on Dec. 31, 2021, with future increases based on an indexed schedule to be set by the Division of the Budget in consultation with the Department of Labor.
o New York City already has a $15 minimum wage.
- Rhode Island increases to $12.25 on Jan. 1, 2022, $13 in 2023, $14 in 2024, and $15 in 2025.
- Virginia increases to $11 on Jan. 1, 2022 and $12 in 2023. Increases to $13.50 in 2025 and $15 in 2026 can occur if the General Assembly enacts them again by July 1, 2024.
States with indexing where annual cost of living adjustments take effect Jan. 1, 2022 include:
- Arizona increases to $12.80
- Colorado increases to $12.56
- Maine increases to $12.75
- Minnesota increases to $10.33 for employers with annual gross revenues of at least $500,000 and $8.42 for employers with less than $500,000
- Montana increases to $9.20
- Ohio increases to $9.30
- South Dakota increases to $9.95
- Vermont increases to $12.55
- Washington state increases to $14.49
Looking ahead, Connecticut will raise its minimum wage to $14.00 on July 1, 2022 and $15 on June 1, 2023, with annual indexing beginning Jan. 1, 2024. Nevada, Oregon and the District of Columbia also have increases scheduled for July 1, 2022. Florida’s minimum wage will increase to $11 on Sept. 30, 2022 and then by $1 a year until reaching $15 in 2026; Florida will then resume indexing.
The federal minimum wage has been stuck for more than 12 years at $7.25 an hour since July 24, 2009—the longest period in history without a raise. In February 2021, the U.S. House of Representatives passed the Raise the Wage Act, which would increase the federal minimum wage to $15 by 2025, as part of the American Rescue Plan, but the Senate did not follow suit.
