Employers in nine states will see the minimum wage they are required to pay rise on January 1, 2009, because their state's minimum wage has been indexed to inflation.
The nine states make annual adjustments to their state's minimum wage rate for inflation. These 9 states usually announce the changes in September or October, and the changes take effect January 1.
The nine states are:
In Arizona, the minimum wage will rise from $6.90 to $7.25 per hour effective January 1, 2009. The change will mean that Arizona 's minimum wage in 2009 will continue to exceed the federal minimum wage through the first half of 2009. On July 24, 2009, the federal minimum wage will rise to $7.25 per hour; at which time the Arizona and federal minimum wage will be the same.
In Colorado, the minimum wage will increase from $7.02 per hour to $7.28 per hour on January 1, 2009.
In Florida, the minimum wage will rise from $6.79 per hour to $7.21 per hour effective January 1, 2009. The Florida minimum wage will prevail over the federal rate until July 24, 2009, when the federal rate rises from $6.55 to $7.25. On that date, Florida employers must increase the minimum wage from $7.21 to $7.25.
Employers in Missouri will see the state minimum wage increase from $6.65 per hour to $7.05 per hour on January 1, 2009.
Employers with employees in Montana will see the minimum wage they are required to pay rise from $6.55 per hour to $6.90 per hour on January 1, 2009. On July 24, 2009, the federal minimum wage will rise to $7.25 per hour, at which time employers in the state will be required to pay the higher federal rate.
Ohio's minimum wage will rise from $7.00 per hour to $7.30 per hour on January 1, 2009. For employers who gross $267,000 or less, the minimum wage they are required to pay will be $6.55 per hour until the federal rate rises in July 2009, when the minimum wage will increase to $7.25 per hour.
The minimum wage in Oregon will rise from $7.95 to $8.40 on January 1, 2009.
Vermont's minimum wage will increase from $7.68 per hour to $8.06 per hour on January 1, 2009.
Washington's minimum wage will increase from $8.07 an hour to $8.55 an hour effective January 1, 2009.
In Nevada, the state minimum wage rate is adjusted annually, but employers are informed of the changes by April 1, and the rates take effect July 1 of the same year.
Currently, employers in Nevada that offer qualified health insurance to their employees must pay the federal minimum wage rate of $6.55 per hour. If an employee is not offered qualified health insurance, the wage rate is $6.85 per hour.
Employers in two other states--Connecticut and New Mexico--will also see their minimum wage increase on January 1. Connecticut's minimum wage will rise to $8.00 per hour, and New Mexico's will increase to $7.50 hour on January, 1, 2009. Some other states will see minimum wage increases later in the year. However, none of these states has tied their minimum wage to inflation.