19 States See Minimum Wage Increase in 2017

Across the U.S., 19 states will see a state minimum wage increase in 2017. However, the Federal government hasn’t raised minimum wages in over 7 years since 2009, when it raised it from $6.55 to $7.25, some of the states on this list will see rates as high as $11 in the increase. The state minimum wage increase can bring about major changes in the way you run your business if you’re in one of these states.

Alaska will increase from $9.75 to $9.80 per hour.

Arizona will increase from $8.05 to $10 per hour.

Arkansas will increase from $8 to 8.50 per hour.

California will increase from $10 to $10.50 per hour.

Colorado will increase from $8.31 to $9.30 per hour.

Connecticut will increase from $9.60 to $10.10 per hour.

Florida will increase from $8.05 to $8.10 per hour.

Hawaii will increase from $8.50 to $9.25 per hour.

Maine will increase from $7.50 to $9 per hour.

Massachusetts will increase from $10 to $11 per hour.

Michigan will increase from $8.50 to $8.90 per hour.

Missouri will increase from $7.65 to $7.70 per hour.

Montana will increase from $8.05 to $8.15 per hour.

New Jersey will increase from $8.38 to $8.44 per hour.

New York will increase from $9 to $9.70 per hour.

Ohio will increase from $8.10 to $8.15 per hour.

South Dakota will increase from $8.55 to $8.65 per hour.

Vermont will increase from $9.60 to $10 per hour.

Washington will increase from $9.47 to $11 per hour.

Employers in these 19 states are required to update their laborlaw posters for employees as minimum wage increases. Labor Law Posters have to be in an area where every employee is able to see them.

Not all minimum wage increases are very significant. Four states -- Alaska, Florida, Missouri, and Ohio -- are raising their minimum wages by just $0.05 per hour, while two more -- Montana and South Dakota -- are seeing just a $0.10-per-hour boost. New Jersey splits the difference with a $0.06-per-hour rise. These increases all have ties to changes in the rate of inflation, with most states choosing to link their minimum wages to rises in one of the Consumer Price Index data series. 

Proponents argue that raising the minimum is one of the most practical ways of improving living standards for the working poor and reducing inequality. But others believe that, when forced to pay more in wages, many employers were hiring more productive workers, so that the overall amount they spent on each job changed far less than the minimum-wage increase would have suggested. The more productive workers appeared to finish similar work more quickly.

This would raise questions about whether increasing the minimum wage is as helpful to those near the bottom of the income spectrum as some proponents assume. The higher minimum wage could cost low-skilled workers their jobs, as employers rush to replace them with somewhat more skilled workers.

In fact, when the minimum wage goes up for everyone, it is not so easy for employers to substitute better-skilled workers because the new minimum would not offer a more attractive wage. In many cases, more highly skilled workers see their wages rise after minimum-wage increases to keep them above the new minimum, making it all the more difficult to lure them away. Therefore, it is difficult for employers to replace low-skilled workers with better-skilled workers.