New Year Brings Minimum-Wage Hikes In 10 States 
 
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 On Tuesday, the minimum wage in 10 states will increase by anywhere from a dime to 35 cents. 
 
 For all of the states but one, the pay hikes are part of automatic adjustments designed to keep up with the cost of living. 
 
 In Rhode Island, it took a state law to raise the minimum wage for the first time in five years. 
 
 Rising Wages Vs. Rising Prices 
 
 Cafe Zog in Providence is a cozy, quirky place where you can grab a coffee and bagel to go, or nab a booth then head to the counter to order a hot breakfast. 
 
 There are two colleges nearby, so cafe owner Julio Fonseca tends to hire students or recent grads. 
 
 "They start at a minimum wage," he says. "After a few months, if they stay, we usually reward them according to their work ethics." 
 
 Sydonia Lary has worked at the cafe long enough to get a bump in pay. As an artist working two hourly wage jobs, she says, it's difficult to make ends meet. 
 
 "I mean, this economy, everything is so expensive nowadays, and trying to pay rent and get groceries and whatever your mode of transportation may be, only making $7.40 an hour, it just doesn't really cut it," she says. 
 
 Rhode Island is hiking its minimum wage from that $7.40 to $7.75. For workers like Lary, this is good news. Not so much for her boss. Fonseca says it will be more expensive for him to reward his hard-working employees. He has spent the past year watching food prices climb, and now that wages are rising, he's worried. 
 
 "Every time something goes up, we can't raise the prices, otherwise we're going to price ourselves out of the market," he says. "So, it's very tough." 
 
 Losing The Low Rung On The Totem Pole 
 
 Bill Vernon works with the National Federation of Independent Business, a group that tends to fight against wage hikes. He says higher wages will force businesses to refrain from hiring, and that will harm young workers looking for that entry-level job. 
 
 "An increase in the minimum wage eliminates that low rung on the ladder that people can step on to get ahead," he says. 
 
 States can set their own minimum wage. There are some exceptions, but for the most part, the federal wage is the least someone can make. In the 10 states raising theirs on Jan. 1, nearly a million workers will benefit. Washington state has bumped its wage up to $9.19 an hour. That's almost $2 more than in neighboring Idaho. 
 
 T. William Lester, a regional economist at the University of North Carolina, Chapel Hill, works with a research team that looked at minimum wages along state lines. 
 
 "It's not like all the businesses that used to be in Washington state found it now way more worthwhile to relocate to Idaho and take advantage of the lower minimum wage," he says. 
 
 In fact, the research team looked at every county that borders a state line and found that a rising minimum wage had no impact on employment. It actually cut costs by reducing turnover. 
 
 "And when you raise the minimum wage, you kind of are raising the bar," Lester says. 
 
 NFIB's Bill Vernon says legislatures in some 40 states will look at raising their minimum wage this year. And lawmakers on Capitol Hill are kicking around the idea of bumping up the $7.25 federal minimum wage by about $2. 
 
 Vernon says he could see Congress agreeing to a $1 raise, but that would take compromise, something that hasn't been around much in Washington these days. ||||| The table below reflects current state minimum wages in effect as of July 1, 2018, as well as future enacted increases. 
 
 Summary 
 
 2018 Highlights 
 
 Eighteen states began the new year with higher minimum wages. Eight states (Alaska, Florida, Minnesota, Missouri, Montana, New Jersey, Ohio, and South Dakota) automatically increased their rates based on the cost of living, while eleven states (Arizona, California, Colorado, Hawaii, Maine, Michigan, New York, Rhode Island, Vermont and Washington) increased their rates due to previously approved legislation or ballot initiatives. 
 
 Massachusetts enacted a measure (HB 4640) to increase the state minimum wage to $15.00 over five years. The tipped wage would rise to $6.75 from $3.75 over the same time period. 
 
 Delaware enacted SB 170, which phases in a two-step increase. The rate rises from $8.25 to $8.75 effective January 1, 2019 (as amended by HB 483), and will increase again to $9.25 effective October 1, 2019. 
 
 Voters in Arkansas and Missouri approved ballot initiatives phasing in increases to $11.00 and $12.00 per hour, respectively. 
 
 2017 Highlights 
 
 Nineteen states began 2017 with higher minimum wages. Seven states (Alaska, Florida, Missouri, Montana, New Jersey, Ohio and South Dakota) automatically increased their rates based on the cost of living, five states (Arizona, Arkansas, Colorado, Maine and Washington) increased their rates through ballot initiatives previously approved by voters, and seven states (California, Connecticut, Hawaii, Massachusetts, Michigan, New York and Vermont) did so as a result of legislation passed in prior sessions. Washington D.C., Maryland and Oregon raised their respective minimum wages on July 1, 2017 due to previously enacted legislation. 
 
 Rhode Island was the only state to enact a minimum wage increase during 2017 legislative sessions. 
 
 2016 Highlights 
 
 Voters in Arizona, Colorado, Maine, and Washington approved November ballot measures to raise their respective minimum wages. Arizona, Colorado, and Maine will incrementally increase their minimum wages to $12 an hour by 2020. Washington's will be increased incrementally to $13.50 an hour by 2020. 
 
 New York became the second state to pass a new law that would raise the minimum wage in New York City to $15 per hour by the end of 2018. Washington D.C. followed suit, enacting a law to raise the minimum wage in the District to $15 per hour by July 1, 2020. 
 
 On April 4, California Governor Jerry Brown signed Senate Bill 3 into law. The new law increases the minimum wage to $15 per hour by Jan. 1, 2022, for employers with 26 or more employees. For employers with 25 or fewer employees the minimum wage will reach $15 per hour by Jan. 1, 2023. Increases may be paused by the governor if certain economic or budgetary conditions exist. Beginning the first Jan. 1 after the minimum wage reaches $15 per hour for smaller employers, the minimum wage is indexed annually for inflation. 
 
 On March 23, Governor Kenneth Mapp of the Virgin Islands signed Act 7856, establishing an $8.35 minimum wage with scheduled annual increases on June 1, 2017 and 2018 until the rate reaches $10.50. 
 
 On March 2, Oregon Governor Kate Brown signed SB 1532 into law. It establishes a series of annual minimum wage increases from July 1, 2016 through July 1, 2022. Beginning July 1, 2023, the minimum wage rate will be indexed to inflation based on the Consumer Price Index. 
 
 Fourteen states begin the new year with higher minimum wages. Of those, 12 states increased their rates through legislation passed in the 2014 or 2015 sessions, while two states automatically increased their rates based on the cost of living. 
 
 Of the 11 states that currently tie increases to the cost of living, eight did not increase their minimum wage rates for 2016. Colorado provided for an 8-cent increase and South Dakota granted a 5-cent increase per hour. Increases in Nevada are required to take effect in July. 
 
 Maryland, Minnesota and D.C. have additional increases scheduled for 2016. Nevada will announce in July whether or not there will be a cost of living increase to their indexed minimum wage. 
 
 2015 Highlights 
 
 The Rhode Island legislature enacted an increase, taking the state minimum wage to $9.60 effective Jan. 1, 2016. (HB 5074 / S194) 
 
 The increases D.C. and Maryland passed during the 2014 session take effect July 1, 2015. D.C.'s new wage of $10.50 an hour makes it the first jurisdiction to cross the $10 threshold among the states. Maryland's minimum wage rose to $8.25 on July 1. 
 
 Delaware also passed an increase in 2014, which took effect June 1, 2015, increasing the state's minimum wage to $8.25 an hour. 
 
 2014 highlights 
 
 Currently, 29 states and D.C. have minimum wages above the federal minimum wage of $7.25 per hour. 
 
 Five states have not adopted a state minimum wage: Alabama, Louisiana, Mississippi, South Carolina and Tennessee. New Hampshire repealed their state minimum wage in 2011 but adopted the federal minimum wage by reference. 
 
 State Legislation 
 
 State Minimum Wage Legislation State Minimum Wage Future Enacted 
 
 Increases Indexed Automatic 
 
 Annual Adjustments Alabama none Alaska $9.84 Indexed annual increases begin 
 
 Jan. 1, 2017. (2014 ballot measure) American Samoa varies 1 Arizona $10.50 $11.00 eff. 1-1-19 $12.00 eff. 1-1-20 Rate increased annually based on cost of living beginning Jan. 2021 (2016 ballot measure) Arkansas $8.50 $9.25 eff. 1-1-19 $10.00 eff. 1-1-20 $11.00 eff. 1-1-21 California2 $11.00 $12.00 eff. 1-1-19 $13.00 eff. 1-1-20 $14.00 eff. 1-1-21 $15.00 eff. 1-1-22 Indexed annual increases based on CPI begin Jan. 1, 2023 Colorado $10.20 $11.10 eff. 1-1-19 $12.00 eff. 1-1-20 Rate increased annually based on cost of living beginning Jan. 1 2021 (2016 ballot measure) Connecticut $10.103 Delaware $8.75 $9.25 eff. 10-1-19 D.C. $13.25 $14.00 eff. 7-1-19 $15.00 eff. 7-1-20 Indexed annual increases based on CPI begin July 1, 2021 Florida $8.25 Annual increase based cost of living. (Constitutional amendment 2004) Georgia $5.15 Guam $8.25 Hawaii $10.10 Idaho $7.25 Illinois $8.25 Indiana $7.25 Iowa $7.25 Kansas $7.25 Kentucky $7.25 Louisiana none Maine $10.00 4 $11.00 eff. 1-1-19 $12.00 eff. 1-1-20 Indexed annual increases based on CPI begin Jan 1, 2021 Maryland $10.10 Massachusetts $11.00 5 $12.00 eff. 1-1-19 $12.75 eff. 1-1-20 $13.50 eff. 1-1-21 $14.25 eff. 1-1-22 $15.00 eff. 1-1-23 Michigan $9.25 Annual increases take effect Jan. 1, 2019, linked to the CPI. Increases not to exceed 3.5%. (2014 Legislation) Minnesota $9.65/$7.87 6 Indexed annual increases begin 
 
 Jan. 1, 2018. (2014 legislation) Mississippi none Missouri $7.85 7 $8.60 eff. 1-1-19 $9.45 eff. 1-1-20 $10.30 eff. 1-1-21 $11.15 eff. 1-1-22 $12.00 eff. 1-1-23 Minimum wage increased or decreased by cost of living starting Jan. 1, 2024. (2018 ballot measure) Montana $8.30/$4.00 8 Increases done annually based on the CPI and effective Jan. 1 of the following year. (2006 ballot measure) Nebraska $9.00 Nevada $8.25/$7.25 9 Increases subject to the federal minimum wage and consumer price index. Increases take effect July 1. (Constitutional amendment 2004/2006). New Hampshire repealed by HB 133 (2011) New Jersey $8.60 Indexed annual increases based on the CPI, effective Jan. 1, 2014. (Constitutional Amendment 2013) New Mexico $7.50 New York $10.4010 $11.10 eff. 12-31-18 $11.80 eff. 12-31-19 $12.50 eff. 12-31-20 After 12-31-20, the rate is adjusted annually for inflation until it reaches $15.00 North Carolina $7.25 North Dakota $7.25 Ohio $8.30/$7.2511 Indexed annual increases based on the CPI. (Constitutional amendment 2006) Oklahoma $7.25/$2.00 12 Oregon $10.7513 $11.25 eff. 7-1-19 $12.00 eff. 7-1-20 $12.75 eff. 7-1-21 $13.50 eff. 7-1-22 Indexed annual increases based on the CPI are effective July 1, 2023 (2016 legislation) Pennsylvania $7.25 Puerto Rico $7.25/$5.08 14 Rhode Island $10.10 $10.50 eff. 1-1-19 South Carolina none South Dakota $8.85 Annual indexed increases begin 
 
 Jan. 1, 2016. (2014 ballot measure.) Tennessee none Texas $7.25 Utah $7.25 Vermont $10.50 Beginning Jan. 1, 2019, minimum wage increased annually by 5% or the CPI, whichever is smaller; it cannot decrease. Note: Vermont started indexing in 2007 but enacted additional increases in 2014. 
 
 (2014 legislation) Virgin Islands $10.50 Virginia $7.25 Washington $11.50 $12.00 eff. 1-1-2019 $13.50 eff. 1-1-2020 Annual indexed increases began Jan. 1, 2020. (ballot measure 2016) West Virginia $8.75 Wisconsin $7.25 Wyoming $5.15 
 
 Sources: U.S. Dept. of Labor, http://www.dol.gov/esa/minwage/america.htm; and state web sites. 
 
 Notes 
 
 1 American Samoa: The Fair Minimum Wage Act of 2007 (Public Law 110-28) sets minimum wage rates within American Samoa and provides for additional increases in the minimum wage of $0.50 per hour each year on May 25, until reaching the minimum wage generally applicable in the United States. The wage rates are set for particular industries, not for an employee's particular occupation. The rates are minimum rates; an employer may choose to pay an employee at a rate higher than the rate(s) for its industry. 
 
 2 California: The minimum wage scheduled increases are delayed by one year for employers with 25 or fewer employees. The rate increases to $10.50 per hour effective 1/1/2018 and is increased by $1.00 increments annually until it reaches $15.00 effective 1/1/2023 
 
 3 Connecticut: The Connecticut minimum wage rate automatically increases to 1/2 of 1 percent above the rate set in the Fair Labor Standards Act if the Federal minimum wage rate equals or becomes higher than the State minimum. 
 
 4 The Maine minimum wage is automatically replaced with the Federal minimum wage rate if it is higher than the State minimum. 
 
 5 The Massachusetts minimum wage rate automatically increases to 10 cents above the rate set in the Fair Labor Standards Act if the Federal minimum wage equals or becomes higher than the State minimum. 
 
 6 Minnesota: With the passage of H.B. 2091 (2014), the annual sales volume threshold was reduced to $500,000. For large employers, with an annual sales volume of $500,000 or more, the minimum wage is currently $9.50; for small employers, those with an annual sales volume of less than $500,000, the minimum wage is $7.75. 
 
 7 Missouri - In addition to the exemption for federally covered employment, the law exempts, among others, employees of a retail or service business with gross annual sales or business done of less than $500,000. 
 
 8 Montana: the $4.00 rate applies to businesses with gross annual sales of $110,000 or less; $8.15 applies to all others. 
 
 9 Nevada: $8.25 without health benefits; $7.25 with health benefits. 
 
 10 New York: The new minimum wage varies across the state based on geographical location and, in New York City, employer size. 
 
 New York Minimum Wage Year NYC Large Employers (11 or more employees) NYC Small Employers (10 or fewer employees) Ny Downstate (Nassau, Suffolk, and Westchester counties) 12/31/2017 $13.00 $12.00 $11.00 12/31/2018 $15.00 $13.50 $12.00 12/31/2019 -- $15.00 $13.00 12/31/2020 -- -- $14.00 12/31/2021 -- -- $15.00 
 
 11 Ohio: $7:25 for employers grossing $299,000 or less 
 
 12 Oklahoma: Employers of ten or more full time employees at any one location and employers with annual gross sales over $100,000 irrespective of number of full time employees are subject to federal minimum wage; all others are subject to state minimum wage of $2.00 (OK ST T. 40 § 197.5). 
 
 13 Oregon: In addition to the new standard minimum wage rate, SB 1532 sets out a higher rate for employers located in the urban growth boundary, and a lower rate for employers located in nonurban counties. Their respective planned increases are below. 
 
 Oregon Minimum Wage Year Portland Metro Nonurban Counties 7/1/2016 $9.75 $9.50 7/1/2017 $11.25 $10.00 7/1/2018 $12.00 $10.50 7/1/2019 $12.50 $11.00 7/1/2020 $13.25 $11.50 7/1/2021 $14.00 $12.00 7/1/2022 $14.75 $12.50 7/1/2023 $1.25 over standard min. wage $1 below standard min. wage 
 
 14 Puerto Rico: Employers covered by the Federal Fair Labor Standards Act (FLSA) are subject to the Federal minimum wage of $7.25. Employers not covered by the FLSA will be subject to a minimum wage that is at least 70 percent of the Federal minimum wage or the applicable mandatory decree rate of $5.08, whichever is higher. The Secretary of Labor and Human Resources may authorize a rate based on a lower percentage for any employer who can show that implementation of the 70 percent rate would substantially curtail employment in that business. 
 
 
 
 Other Exceptions
– The new year brings with it minimum wage increases—from as little as 10 cents to as much as 35 cents—in 10 states, helping almost one million workers, NPR reports. Nine of the hikes were part of automatic cost-of-living adjustments, but in Rhode Island, the wage was upped for the first time in five years thanks to a new law. The increases also mean that the minimum wage gap is growing, the AP points out: Washington state, for example, bumped its minimum up to $9.19 per hour, while in neighboring Idaho, the lowest wage is almost $2 per hour less.