There was an acceleration of activity oriented towards increasing minimum wages across the United States.  This activity has been fueled by a number of developments, including inflation in the cost of food and fuel.  Efforts targeted to the US Congress has been fruitless so the activity on this topic has moved to a new arena.  “Living wage” campaigns at the city, state and county level are bringing about changes across the country.

There are 22 states with minimum wages above the federal minimum. Some of these states require these wages across the board and some only for specific employers such as those with state contracts.   There are 120 cities currently with “living wage” stipulations on city contracts.  As of the date of this memorandum, that is changing on a regular basis, so it is best not to place too much reliance on this chart even though it is relatively current.  The wage picture is changing hourly.  Eleven of these states now have their wages indexed to the cost of living so that wage increases in the future will be automatic, generally occurring in January.  In addition to the states who have mandated wage increases, there are cities and counties getting into the act.  This memo is to give you some idea of the complexities arising on this topic.  While the lists below give you some information on the topic, the best way to stay on top of it is to touch base with AustinHR on this topic if your company has a presence in or is considering expansion into another state.

STATES WITH WAGES INDEXED TO THE COST OF LIVING ARE:  Arizona, Colorado, Florida, Missouri, Montana, Nevada, Ohio, Oregon, Vermont and Washington.