2018 Minimum Wage Increases: What Employers Can Do to Prepare

Interesting fact: The federal minimum wage was introduced under President Franklin Delano Roosevelt in 1938 during the Great Depression. It was initially set at $0.25 per hour and has since been increased by Congress 22 times, most recently in 2009 when it went from $6.55 to $7.25.

This New Year’s Day many Americans had one more thing to celebrate – the pay raises coming in early 2018 as the minimum wage increased in eighteen US states. 

Interesting fact: The federal minimum wage was introduced under President Franklin Delano Roosevelt in 1938 during the Great Depression. It was initially set at $0.25 per hour and has since been increased by Congress 22 times, most recently in 2009 when it went from $6.55 to $7.25.

Currently there are 29 states, plus the District of Columbia, that have a minimum wage which is higher than the federal minimum wage. According to the Economic Policy Institute, ten of the eighteen states raising minimum wage early this year are doing so as a result of legislation or ballot measures. Those states are Arizona, California, Colorado, Hawaii, Maine, Michigan, New York, Rhode Island, Vermont and Washington. The other eight states increasing their minimum wage are doing so through automatic inflation adjustments. Those states are Alaska, Florida, Minnesota, Missouri, Montana, New Jersey, Ohio and South Dakota.

According to the Economic Policy Institute, about 4.5 million workers around the country will benefit from the wage increases taking effect at the beginning of the year. For a complete state-by-state guide to Minimum Wage Changes, please click here.


More Wage Increases to Come . . .

Later this year, even more states, cities and counties have already planned to increase minimum wages. And there are campaigns underway for increases in at least 17 more states and cities, including Massachusetts, New Jersey, Vermont, Illinois, Missouri, Michigan, and Nevada.

In the spring of 2017, the Democratic party officially introduced a bill called the, “Raise the Wage Act.” The bill proposes to raise the federal minimum wage to $15 by 2024. The premise of the bill is to raise the hourly wage to what would amount to a living wage.

 

How a Professional Employer Organization Can Assist

Unfortunately, the continued increases in minimum wage across the country are just one example of the challenge businesses have keeping pace with regulatory changes. It’s one of several reasons driving many small- to mid-sized businesses to a Professional Employer Organization.

As a Certified Professional Employer Organization (CPEO), our staff at Resourcing Edge keeps our clients up to date with regulations and legislation that affects the business of being an employer. For example, even before the start of the new year, we had begun initiating plans for handling the minimum wage increases for our clients.

 

What Employers Can Do to Prepare

Whether we like it or not, minimum wage increases will continue to be implemented. Perhaps the best thing a business owner can do is to have a plan. Here are three things that you can do now to prepare for minimum wage increases:  

 

At Resourcing Edge, in addition to monitoring and addressing hikes in minimum wage that affect our clients, we also provide Human Resources services as well as integrated HR and Payroll technology to simplify the process of managing employees. As a result, we help our clients manage the lifecycle of the employee, from job applicant to new hire to fully onboarded employee.

Interested in receiving a no-obligation consultation on regulations and legislation that could affect your business? Contact Us