Over 58% of the US workforce is paid hourly wages and about 2.3% of those workers are making the federal minimum wage or less.1 This makes minimum wage increases a pivotal issue for many workers and businesses. Our hourly workforce management experts explore the states increasing minimum wage this year. Many states are on the way to $15 hourly minimum wage, with 2019 serving as an intermediate year to gradually roll out new pay schedules. Here are states raising minimum wage for hourly workers.
2019 Minimum Wage Increases by State
This year, 21 states have been working to raise the minimum wage for hourly employees. States where workers will see an increase on their paycheck include:
- New York, $0.70 increase to $11.10
- Washington State, $0.50 increase to $12.00
- District of Columbia, $0.75 increase to $14.00
- South Dakota, $0.25 increase to $9.10
- Florida, $0.21 increase to $8.46
- Arizona, $0.50 increase to $11.00
States with the highest minimum wage for hourly workers include California, Oregon, Maine, Colorado, District of Columbia, and Arizona.2
Federal Minimum Wage in 2019 and 2020
While many states are taking steps to increase minimum wage, the federal minimum wage has remained largely unchanged. The federal minimum wage in 2019 is $7.25 an hour. There are several states who have not set their own minimum wage requirements, so the federal minimum wage prevails.3 States with the federal minimum wage of $7.25 an hour include:
- New Hampshire
- North Carolina
- North Dakota
Adjusting Payroll for 2019 Minimum Wage Increases
Though many of this year’s minimum wage increases have already been mandated as of January 1, some states are rolling out the wage increases as the year goes on. Many of the states increasing their minimum wage in 2019 will also increase their minimum wage in 2020 and beyond, so it is important to have a plan for incorporating these updates.
At Valiant, our payroll and HR software solutions simplify the process of updating payroll and pay scales to reflect your state’s minimum wage changes. With our single point solution for payroll management, employee pay can be easily adjusted as your state’s requirements change.
- Bureau of Labor Statistics – Characteristics of minimum wage workers, 2017
- USA Today – From California to New York, states are raising minimum wages in 2019 for 17 million workers
- US Department of Labor – Wage and Hour Division (WHD)