Minimum wage to go up in many of US states in 2022

At least 22 states are set to increase the minimum wage with effect from January, 2022

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The New Year will see the minimum wage going up across many states of the US. Starting January 2022, the minimum wage in Maryland will go up from $11.75 per hour to $12.50 per hour. This will be applicable to all setups with at least 15 employees in the workforce. The minimum wage will keep increasing every year and is expected to reach $15 per hour in five years, that is, 2025.

Establishments with a 14-strong workforce or less that were paying their workers a minimum of $11.60 an hour, will now have to pay $12.20 per hour at least. However, the minimum wage for tipped staff remains unchanged at $3.63 per hour, inclusive of tips.

In Washington, the minimum wage will go up 80 cents, from $13.69 to $14.49. Colorado too will hike minimum wage in 2022.

By 2023, the minimum wage will increase to $15 per hour in Connecticut and Massachusetts. New Jersey and Pennsylvania will follow suit a year later. By 2025, Rhode Island will have minimum wage at $15.

It is reported that starting January 2022, those working in the hotel industry in West Hollywood will earn the highest minimum wage in the US, that is, $17.64 an hour.

With the implementation of the hike in minimum wage, employers across the US will have to rework on their budgets. It is expected that the burden of this increase in expenses will be passed on to the customers, because prices will go up.

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