Effective October 1, 2018, Delaware will enact a 50-cent increase in its minimum wage, bringing it to a new high of $8.75 per hour. Shortly thereafter and throughout 2019, adjustments will be made to minimum wage levels in 22 states and districts, including Alaska, Arizona, California, Colorado, Delaware (additional adjustment in 2019), the District of Columbia, Florida, Maine, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nevada, New Jersey, New York, Ohio, Oregon, Rhode Island, South Dakota, Vermont and Washington.
In an effort to increase the minimum wage, some states have passed legislation to enact adjustments on an annual basis based on the consumer price index or similar metric. Other states have passed fixed increases to attain a specific wage over time. Most notably, California, D.C., Massachusetts, and New York will reach a $15 minimum wage by 2023.
There has been a lot of debate surrounding the federal minimum wage law in recent years as the issue has taken a spot at the center of the nation’s political discussion. Regardless of whether the nation believes that the market should determine wages or that the national minimum should be raised, the reality of current state legislation is that the minimum wage will continue to increase across the country. As such, retailers can expect to see increases in one of their most significant expenses over the next five years.
For more on how these legislative actions can affect your business, contact us at contactSD@schneiderdowns.com.