Just years after labor activists persuaded a handful of states to raise their minimum wage to $15 per hour, workers initially thrilled with the pay hikes are now struggling to make ends meet as inflation erodes their purchasing power
New York, California and Massachusetts are among states where pro-labor forces are now pushing proposals that, if approved, would boost minimum wages to $20 or more in the coming years
A bill in New York would raise the state’s minimum wage to $21.25 by 2026, and then adjust it each year going forward for inflation. Right now, minimum wage workers in New York City get paid $15 per hour, while those in the rest of the state get paid $12.50
In California, a bill would raise the state’s minimum wage to $20 by 2027, and then index it to inflation. Currently, California’s minimum wage is $14 per hour for employers with 26 or more employees, and $13 for smaller employers.
In Massachusetts, a bill would raise the state’s minimum wage to $20 by 2028, and then index it to inflation. Massachusetts’ minimum wage is currently $13.50 per hour and is set to increase to $15 by 2023.
Supporters of these bills argue that raising the minimum wage is necessary to ensure that workers can afford basic necessities and live with dignity, especially amid rising costs of living and stagnant wages.
Opponents of these bills contend that raising the minimum wage too high and too fast would hurt businesses, especially small ones, and lead to job losses, reduced hours and higher prices for consumers.
The debate over the minimum wage comes as the US is experiencing its highest inflation rate in nearly four decades, driven by supply chain disruptions, labor shortages and pent-up demand from the pandemic.