December 4, 2024
Workers will get a raise after the minimum wage increases are passed

Workers will get a raise after the minimum wage increases are passed

  • Four states – Alaska, California, Massachusetts and Missouri – are voting on some form of minimum wage increase.
  • In Missouri, voters chose to increase the minimum wage.
  • Workers in other states are still waiting to see how their wages might change.

Salary is on the agenda and some employees will get a raise.

Four states — Massachusetts, Missouri, California and Alaska — all have some form of referendum on whether to raise the minimum wage. In Massachusetts, voters decided on a proposal that would give workers who rely on tips an increase in their base pay, while minimum-wage workers in three other states could see broad pay increases.

In Arizona, voters are considering whether to lower the tipped minimum wage — provided employers can show that employee wages are still $2 above the state minimum when taking tips into account.

Shortly after the polls closed in Missouri, it was clear that the referendum had passed. Meanwhile, Massachusetts rejected his proposal. The voters of the other states are still waiting for their results.

Missouri

In Missouri, voters have chosen to raise the state’s minimum wage to $15 by 2026. The state voted 57.7% in favor of Proposition A, which would first raise the minimum wage to $13.75 per hour on Jan. 1, 2025, and then raise it again. to $15 per hour on January 1, 2026.

From 2027, wages will be linked to inflation. The measure also requires employers to give their employees one hour of paid leave for every 30 hours they work.

As the measure expires, The New York Times projections show Missouri voting for President Donald Trump, who said he would “consider” a minimum wage increase if it proves beneficial to small businesses. His opponent, Vice President Kamala Harris, has pledged support for raising the federal minimum wage from $7.25 to $15 an hour.

A group of Missouri business owners in favor of the measure praised Proposition A’s passage Tuesday evening.

“Proposition A will strengthen Missouri’s workforce and businesses,” said David Burmeister, owner of Midwest Pasta Co. in St. Louis, in a news release. “Raising the minimum wage will increase people’s ability to shop at our company and at local businesses across Missouri. We’ve seen that paying better wages means better business. Employees are happier at work and do better work. “

Massachusetts

In Massachusetts, tipped workers won’t see their wages slowly increase to meet the state’s minimum wage.

One measure failed; according to the Times’ projections, 64% of voters rejected it.

Voters rejected a system that required their wages to be equal to the state minimum wage of $15, through a combination of the $6.75 tipped wage and tips.

If the measure had been adopted, it would have taken shape on January 1, 2025.

Tipped workers in Massachusetts would have had their hourly wages bumped up to 64% of the state’s minimum wage in addition to tips. The tipped wage would then have increased for five years until it fully equaled the state salary in 2029.

Arizona

In Arizona, voters did not choose to let employers reduce their base pay for tips.

Proposition 138 proposed allowing employers to pay tipped workers up to 25% less than the state minimum wage, resulting in employers being required to determine that their employees are still earning the minimum wage plus an additional $2 per hour if they bill keep tipping.

Voters rejected the measure by nearly 76%, according to The New York Times projections.

That means Arizona employers can continue to pay their tips $3 less than the current minimum hourly wage, as long as employees still earn at least the minimum wage when taking tips into account.

Are you a worker earning at or near the minimum wage in your country? Share your story with this reporter jkaplan@businessinsider.com.