20 states to raise minimum wages by New Year’s Day
(CNN) - As 2020 comes to a close and 2021 begins, many low-wage workers across the United States are getting a pay bump, as 20 states raise their minimum wage rates by Jan. 1.
The raises are part of previously scheduled efforts to adjust for cost-of-living gains or to ratchet up toward goals like $15 an hour minimum pay. Some of them are by a dollar or more, but others are mere pennies.
In New Mexico, the minimum wage will increase from the current $9 an hour wage to $10.50. The minimum hourly wage in New York state will increase 70 cents to $12.50 an hour. In California, the rate for employers with 26 workers or more will rise from $13 to $14 an hour, the highest state-wide baseline in the country, but in Minnesota, the gain is just 8 cents to a $10.08 hourly rate for large employers.
Nevertheless, the wage boosts come at a much-needed time for many Americans, especially for lower wage workers that have been hit particularly hard by the economic fallout of the COVID-19 pandemic.
Some lawmakers and business organizations, however, have called for a pause on the scheduled minimum wage hikes, citing the burden on small businesses that are already struggling.
The federal minimum wage of $7.25 per hour hasn’t changed since 2009. Twenty states will still have a minimum wage either equal to or below the federal level.
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