Several states base their minimum wage rates on the Consumer Price Index (CPI) to adjust for inflation. These states make the decision each year whether to adjust their minimum wage rate based on any change in the CPI.
Here are the six states increasing their state minimum wage hourly rates effective January 1, 2011:
|State||2010 Rate||New Rate 1/1/11|
Colorado, Florida, Missouri, and Nevada are the other states that base their minimum wage on the CPI. Colorado is still considering a proposal to increase their minimum wage to $7.36, and a decision should be made very soon. Florida and Missouri have chosen not to increase for January 1, 2011, so both states will remain at $7.25. Nevada makes its rate changes effective July 1st, and should make an announcement in the spring of 2011.
Be aware that some states have exceptions for small businesses whose annual sales fall below a certain amount. Some states also have different rates for minor workers and tipped employees. Check with your state’s Department of Labor for details.
If you have employees working in these states, you will want to check now to see who in your workforce is being paid minimum wage, and be ready to enter pay increases in your payroll software as needed for January 1st. You may also need to download and post new minimum wage posters, which can be found at your state’s Department of Labor website.