Minimum Wage to Increase in 8 States for 2012

Eight states are set to increase their hourly minimum wage, effective January 1, 2012. According to Forbes, these increases enhance the hourly rate for around 1.4 million low-wage earners in these eight states. According to the National Employment Law Project (NELP), each state’s minimum wage will increase between 28 and 37 cents per hour. Though the Fair Labor Standards Act (FLSA) sets a federal minimum hourly rate of $7.25 per hour for non-exempt employees, states may enact their own legislation to have a higher pay rate. The states set to increase have wage rates that are tied to inflation, so they must change annually based on the increase or decrease of the inflation rate.

The states increasing their minimum hourly wage are Washington ($9.04/hr), Oregon ($8.80/hr), Vermont ($8.46/hr), Ohio ($7.70/hr), Florida ($7.67/hr), Arizona ($7.65/hr), Montana ($7.65/hr), and Colorado ($7.64/hr). Nevada will reset its minimum wage (currently $7.25/hr) based on inflation in July. Five states do not set state minimum wage standards, Alabama, Louisiana, Mississippi, South Carolina, and Tennessee, while Missouri’s is actually below the federal minimum. Employees in these states receive the FLSA-set minimum hourly wage of $7.25 per hour.

Though states can increase their own minimum wages, the federal government has also seen a jump in their own rate in recent years. The increases in the states won’t affect the federal national minimum wage. In 2007, after a lengthy battle Congress increased the minimum from $5.15 per hour to $5.85 an hour in 2007, $6.55 in 2008 and $7.25 in 2009. Many argue that the FLSA minimum wage and state-mandated wage rates are both not high enough to sustain buying power for low-wage earners. The NELP estimates that the federal minimum wage would have to jump to $10.39 per hour to keep up with inflation.

If your wages have not averaged less than the federal or state-specific minimum wage, you may be eligible to enter a lawsuit to recover lost wages. If you are not receiving legally deserved minimum wage, overtime, or other guarantees under the Fair Labor Standards Act (FLSA), you may be entitled to back pay for underpayment or unpaid overtime. Contact an experienced minimum wage lawyer to find out if you have legal recourse to pursue compensation.