The American middle class has made it clear that they want good jobs that pay enough to make ends meet, and some policymakers have pointed to minimum wage laws as a vehicle for ensuring that even low-income workers are able to earn a sustainable living. Despite some opposition from those who worry that higher labor costs could result in reduced employment, many state and local governments have made recent hikes in their minimum wage. Below, we'll look at some of the biggest moves expected in 2018.
1. New York City fast-food workers: $13.50, up $1.50
One of the biggest minimum wage hikes is tied to a specific industry within the country's most populous city. Those who work in fast-food establishments will get a $1.50 per hour increase, which is technically effective on Dec. 31.
The move was part of a two-year initiative to meet demands for $15 per hour wages. New York City will make the second part of its move on the last day of 2018, helping workers earn that $15 amount in 2019 and beyond.
Image source: Getty Images.
2. Maine: $10, up $1
Maine residents voted in late 2016 to implement a multi-year rise in the minimum wage. The hourly amount climbed to $9 in 2017, and future moves will take the wage to $11 in 2019 and $12 in 2020.
Interestingly, the governor of the state was opposed to the measure, saying that it would effectively raise prices on consumers, especially the elderly. Lawmakers had also opposed several efforts to pass a law raising the minimum wage, prompting citizens to begin a referendum process that put the measure on the ballot and ultimately getting it passed.
3. Colorado: $10.20, up $0.90
Voters in Colorado were also part of the 2016 election drive to boost the minimum wage. It took an amendment to the state constitution to implement the changes, with 2018's rise being the first of three annual $0.90 per hour increases to take effect through 2020, at which point it will reach the $12 mark.
The margin of victory was relatively slim at 55% to 45%. Many opponents pointed to differences in economic prosperity between major cities like Denver and Boulder and smaller communities scattered across rural areas, arguing that while metropolitan areas see enough traffic for low-wage businesses to be able to afford higher labor costs, businesses in other areas of the state suffer hardship when wages rise this much.
4. Hawaii and Maryland: $10.10, up $0.85
Both Hawaii and Maryland will see their minimum wages rise to $10.10 per hour in 2018. For both states, the move is the last stage of a hike passed in 2014, when the wage was $7.25. Wages have risen incrementally each year in Hawaii and Maryland during that time, finally reaching their target. The higher rate comes into effect on Jan. 1 in Hawaii, but not until July 1 in Maryland.