More than half of US states will increase minimum wages in 2022

California's largest businesses will be required to pay workers a minimum of $ 15 per hour starting in January. The edition told in more detail CNBC.

Photo: Shutterstock

This is an important milestone that fast food workers have been trying to achieve since 2012. But anti-poverty activists are not satisfied. Citing the high cost of living in the state and rising inflation, they demand more.

Activist and investor Joe Sunberg is funding an effort to collect enough signatures in California to push the issue in the November elections. Sunberg, who talked about running for president, wants the state's minimum wage to reach $ 2026 an hour by 18 for employees across all businesses.

“We've been a leader in pushing for a $15 minimum wage, but now we need to go even further to $18 an hour,” Sanberg said.

Next year, 26 U.S. states and Washington will raise minimum wages, but in California and parts of New York alone, hourly wages will be at least $ 15, according to a report by wage experts from Wolters Kluwer Legal & Regulatory US

However, many workers will see more substantial wage increases because their employers have chosen to raise the minimum wage themselves.

On the subject: Top 5 states where salaries have increased dramatically over the past 10 years

The tight labor market has led many companies - from banks to retailers to pizzerias - to raise wages for hourly workers in an effort to attract and retain staff. This year, for the first time, average wages for restaurant and supermarket workers exceeded $15 an hour, according to the Bureau of Labor Statistics (BLS). Wages rose 12% for the 2021 months ending September 4,2, according to the BLS.

Other employers have already surpassed the $ 15 bar. Amazon has been paying its employees at least $ 15 an hour since 2018 and began offering new hires an average of $ 18 an hour in September. In October, Costco raised the minimum wage to $ 17 an hour. The staff at the Hobby Lobby retailer will be earning at least $ 18,50 an hour starting January 1st. T-Mobile pays its 75 staff a minimum of $ 000 an hour. And Bank of America has pledged to pay hourly workers $ 20 an hour by 25.

“This is a jobseeker's market, which means there is competition to retain and find the best talent. And as a large employer, we love it,” T-Mobile CEO Mike Sievert wrote in a letter to employees and announced the pay increase on Dec. 10.

The pandemic has led to a new awareness and approach to hourly workers and their low wages. Restaurant dishwashers and grocery store cashiers were in great demand and often received bonuses during quarantines to help provide stranded consumers with basic necessities. Higher unemployment benefits shed light on how paltry wages most low-paid workers receive, while many are paid much higher unemployment benefits than their old wages.

You may be interested in: top New York news, stories of our immigrants and helpful tips about life in the Big Apple - read it all on ForumDaily New York

Anti-poverty advocates, citing inflation and the cost of basic goods, are also beginning to push for wage increases above $15 an hour. Inflation rose 6,8% in November, the highest since 1982. Real average hourly wages, adjusted for inflation and the average workweek, fell 1,9% in November compared with last year. The question of whether higher wages are driving current inflation is a matter of disagreement among economists.

“It is now generally accepted that $15 is the minimum needed by working people everywhere. $15 an hour has always been a floor, not a ceiling, for wages—and workers will continue to demand that lawmakers and employers raise wages to keep up with rising costs of living,” said Allyn Umel, director of the Fight for $15 campaign.

However, some of the largest private employers in the country have starting salaries below the $ 15 mark. For example, Walmart raised workers' wages to $ 12 an hour earlier this year from the 2018 minimum wage of $ 11. However, according to company representatives, their average wages in the United States rose to $ 16,40.

Companies plan to increase wages next year to remain competitive, a sign that the labor market will not return to normal even after unemployment fell to 4,2% in November. Walgreens Boots Alliance aims to reach $2022 an hour by November 15, while Olive Garden owner Darden Restaurants announced in December it was accelerating its plans to raise wages to $12 an hour.

And while more than half of U.S. states are increasing wages in 2022, 20 states have minimum wages set at the federal minimum of $7,25 an hour. Most of these states elected Republicans as their current governors and have a lower cost of living than states that raise the minimum wage.

Earlier this year, Democrats tried to raise the federal minimum wage by amending the COVID-19 bill, but they failed. The federal minimum wage since 2009 is $ 7,25 an hour.

Read also on ForumDaily:

How to train yourself to save money: the advice of psychologists

How to quickly and free of charge get checked at the airport: three life hacks from a professional

Top 5 states where salaries have increased dramatically over the past 10 years

Myths about US retirement that can cost you dearly

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.