Things are rumbling among business in south of the border.
Next year, 26 U.S. states and Washington will raise their minimum wages, but only California and parts of New York will mandate hourly pay of at least $15, according to a report from payroll experts at Wolters Kluwer Legal & Regulatory U.S.
However, many workers will see more substantial pay increases because their employers chose to raise their pay floor on their own.
A tight labour market stateside resulted in many companies, ranging from banks to retailers to pizzerias, hiking wages for hourly workers to attract and retain staff. This year marked the first time that the average wage of restaurant and supermarket workers rose above $15 an hour, according to the U.S. Bureau of Labor Statistics. Wages and salaries increased 4.2% for the 12 months ended in September 2021, the BLS found.
Other employers have surpassed the $15 benchmark already. Amazon (NASDAQ:AMZN) has paid its workforce at least $15 an hour since 2018 and began offering new hires an average of $18 an hour this September. Costco (NASDAQ:COST) raised its minimum wage to $17 an hour in October. Full-time employees of crafting retailer Hobby Lobby will earn at least $18.50 an hour starting Jan. 1. T-Mobile (NASDAQ:TMUS) is paying its 75,000-members workforce at least $20 an hour. And Bank of America (NYSE:BAC) has pledged to pay hourly workers $25 an hour by 2025.
The pandemic also brought new awareness to and appreciation for hourly workers and their low wages. Restaurant dishwashers and grocery store cashiers were deemed essential and often earned bonus pay for working during lockdowns, helping provide consumers who were stuck at home with necessities. Higher unemployment benefits also shed light on how little pay many low-wage workers earn, with many depositing unemployment checks higher than their old paychecks.
