States, localities set for 2014 wage hikes

Four states—California, Connecticut, New York and Rhode Island—will see increases brought about as a result of legislation passed in those states, while the rate in a fifth state, New Jersey, will increase due to a ballot measure approved by voters in November.

Increases in Connecticut, New Jersey, New York and Rhode Island will take effect Jan. 1. Connecticut’s wage will increase 45 cents to $8.70, New Jersey’s will increase a dollar to $8.25, New York’s by 75 cents to $8, and Rhode Island’s will increase 25 cents to $8. The minimum cash wage for tipped employees in the states won’t be affected.

Both the hourly minimum wage in California and minimum cash wage for tipped employees, currently $8, will increase to $9 on July 1. Ten other states likely will see slight increases, as their minimum wages are automatically adjusted for inflation. New York will also adjust its rate for inflation going forward.

At the local level, the Maryland counties of Montgomery and Prince George’s will begin the process of increasing the minimum wage paid by employers in the counties to $11.50 over three years. The minimum wage in both counties will rise to $8.40 on Oct. 1, with the minimum cash wage for tipped employees remaining at the state level of $3.63.

Last month, voters in the Seattle suburb of SeaTac, Wash., narrowly approved a measure that would set the minimum wage at $15 for certain local airport, transportation and hospitality workers. The increase is scheduled to take effect Jan. 1 and would give the city of 30,000 the nation’s highest minimum wage. However, several business groups, including the Washington Restaurant Association, are challenging the measure in King’s County Superior Court. A hearing in the case is scheduled for Dec. 13, and the business groups are asking the court to stop the increase from taking effect until the legal case is resolved.

The U.S. Senate is currently considering legislation to increase the federal minimum wage from the current $7.25 to $10.10 over three years. The legislation could come up for a vote in early 2014.