Minimum wages were set to increase on Jan. 1, 2022 in many states across the country, with some rising as high as $15 per hour. Several others states will see increases rolling out over the course of the new year.
The increases come amid rising inflation that continues to outpace wage growth. The latest Consumer Price Index indicated that inflation rose 6.8% annually in November, a nearly 40-year high. Comparatively, wages grew by just 4.9% annually in November, according to the Bureau of Labor Statistics.
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A look at new minimum wages by state in 2022
Minimum wages will increase in more than two dozen states and localities in 2022, as some cities set their own minimums that differ from the state and national rate. In Seattle, Washington, for example the minimum wage will rise to $17.27 for companies with more than 501 employees.
California, Colorado and New York – among other states – also increased their salary thresholds, setting the bar for how employees need to earn before they no longer qualify for state-mandated overtime pay.
Take a look at the minimum wage changes for the following states, according to legal intelligence company JD Supra.
- Arizona: $12.80
- Arkansas: Increase remains to be determined (TBD)
- California: $15 per hour for those with 26 employees or more, $14 per hour for those with 25 or fewer employees
- Colorado: $12.56
- Connecticut: $14
- Delaware: $10.50
- Florida: $11
- Illinois: $12
- Maine: $12.75
- Maryland: $12.50 for those with 15 employees or more, $12.20 with 14 employees or fewer
- Massachusetts: $14.25
- Michigan: $9.87 (unless the state’s 2021 unemployment rate exceeds 8.5%)
- Minnesota: $10.33 for large employers, $8.42 for small employers
- Missouri: $11.15
- Montana: $9.20
- Nevada: $9.50 for those offering specific health benefits, otherwise $10.50
- New Jersey: $13 for most, $11.90 for those with fewer than six employees
- New Mexico: $11.50
- New York: $13.20
- Ohio: $9.30 for those with annual gross receipts of $342,000 per year
- Oregon: $13.50
- Rhode Island: $12.50
- South Dakota: $9.95
- Vermont: $12.55
- Virginia: $11
- Washington: $14.49
If you’re in need of financial relief and awaiting your state’s minimum wage increase, consider taking out a personal loan to help consolidate any debt you may have and reduce monthly payments. Visit Credible to compare multiple lenders at once and find the one with the best interest rate for you.
States aren't alone in raising minimum wages
Many private companies are beginning to take matter into their own hands and setting company-specific minimum wages, too. For example, Frost Bank, one of the largest banks in Texas, announced on Dec.17 that it was increasing its wage rate to $20 per hour for 1,800 workers – including bankers, tellers, call center operators and support staff.
"This is just one of the ways that Frost has invested in our employees," said Frost Chairman and CEO Phil Green. "In addition to our commitment to diversity, inclusion and equity, we have built beautiful facilities to work in and kept them open even as many employees enjoy the flexibility of working remotely."
Other employers are making similar moves in order to remain competitive. Bank of America recently announced its new minimum hourly wage of $21 plans to increase it to $25 per hour by 2025. Starbucks also announced a new starting wage of $15 per hour beginning in the summer of 2022.
If you are looking for ways to increase your pay or reduce your monthly expenses, consider taking out a personal loan to consolidate debt. Contact Credible to speak to a loan expert and get all of your questions answered.
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