Minimum Wages: How Does Your State Stack Up?
By Brad Kenney, IT Editor
Industry Week, 7/20/07

According to a recent study by HR information and software provider CCH, workers in most states will not be affected by the upcoming increase in the federal minimum wage to $5.85.

That's because 32 states and the District of Columbia have minimum wages higher than the new federal level.

Where state and federal minimum wage rates differ, the higher rate prevails.

Some quick facts:
Alabama, Louisiana, Mississippi, South Carolina and Tennessee do not have state minimum wage laws, so employers must pay the federal rate to employees who are subject to the FLSA.

In Georgia, Kansas, New Mexico, Utah and Wyoming, the state minimum wage rates are lower than the revised federal rate, so employers must pay the federal rate to employees who are subject to the FLSA.

In Idaho, Indiana, New Hampshire, North Dakota, Oklahoma, South Dakota, Texas and Virginia, the state rates are tied to the federal rate and will automatically increase.

In Minnesota, Montana and Nevada, some employers currently paying a state-authorized lower minimum wage based on their size or offering benefits will be affected by the federal increase.

The federal hourly rate is scheduled to increase to $6.55 on July 24, 2008 and to $7.25 on July 24, 2009. For a timeline of federal minimum wage rates 1938-2009, visit here.

Hourly Minimum Wage as of July 24, 2007 for states at or above the federal rate
Alaska $7.15
Arizona $6.75
Arkansas $6.25
California $7.50
Colorado $6.85
Connecticut $7.65
Delaware $6.65
District of Columbia $7.00
Florida $6.67
Hawaii $7.25
Illinois $7.50
Iowa $6.20
Kentucky $5.85
Maine $6.75
Maryland $6.15
Massachusetts $7.50
Michigan $7.15
Minnesota $6.15 ($5.25 for employers with less than $625,000 in gross annual sales)
Missouri $6.50
Montana $6.15 ($4.00 for employers with $110,000 or less in gross annual sales)
Nebraska $5.85
Nevada $6.33 ($5.15 w/qualified health benefits)
New Jersey $7.15
New York $7.15
North Carolina $6.15
Ohio $6.85
Oregon $7.80
Pennsylvania $7.15 ($6.65 for employers with 10 or fewer employees)
Rhode Island $7.40
Vermont $7.53
Washington $7.93
West Virginia $6.55
Wisconsin $6.50
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Re: Minimum Wages: How Does Your State Stack Up?
Business For Shared Prosperity, 7/25/07

July 24 marked the end of the longest period without a raise in the federal minimum wage since it was enacted in 1938. Contrary to conventional wisdom, many businesses are cheering the raise. The chief executives of Costco, Eileen Fisher apparel company, ABC Carpet and Home, the US Women's Chamber of Commerce, Lamey Wellehan Shoes, IceStone, OnPoint Lasers, Scott Brass, Chuck Roast Equipment, Seventh Generation, Blackfoot River Brewing Co., Candle Enterprises, SunBioDiesel, the co-founder of Electronic Theatre Controls, and small business owners in every state are among those saying a raise for those at the bottom won't hurt the bottom line.

As Costco's CEO Jim Sinegal, has put it: "The increase in the minimum wage is long overdue. Paying your employees well is not only the right thing to do but it makes for good business."

In a statement with nearly 800 signers and climbing, business leaders from all around the country assert:

"Higher wages benefit business by increasing consumer purchasing power, reducing costly employee turnover, raising productivity, and improving product quality, customer satisfaction and company reputation."

The statement at www.businessforafairminimumwage.org adds, "We cannot build a strong 21st century economy when more and more hardworking Americans struggle to make ends meet. A fair minimum wage is a sound investment in the future of our communities and our nation."

The minimum wage has been so eroded over time that even with the new raises; minimum wage workers will have less buying power than minimum wage workers had half a century ago. Even after rising from $5.85 today to $7.25 in 2009, the minimum wage will still be lower than it was in 1956, when it was $7.65 in today's dollars. It will be much lower than it was in 1968, when the minimum wage peaked in value at $9.56 in today's dollars.

States with minimum wages higher than the federal minimum, have had better business and employment trends than states at the federal level.

62 percent of small business owners supported an increase in the minimum wage in a nationwide survey conducted by Small Business Majority in 2006.

John Arensmeyer, CEO of Small Business Majority, says, "Most business leaders recognize that we need to focus our energies in building a strong, competitive 21st century economy that creates the jobs of the future. A minimum wage that promotes stability and economic prosperity is a necessary component of progress."

Adnan Durrani, President of Condor Ventures and Venture Partner, Blue Chip Venture Capital, says, "It is a sound business decision to increase the minimum wage. It increases sales. It increases employment. I have found that without exception in the successful ventures we've backed, providing sustainable living wages yielded direct increases in productivity, job satisfaction and brand loyalty from customers, all contributing to higher returns for investors and employers."

You can see the regularly updated signatories list for business people supporting higher minimum wage at http://www.businessforafairminimumwage.org/signatories. More signers are welcome!

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