Ohio low-income workers are seeing a boost in their paychecks with the new year. The state’s minimum wage increased ten cents per hour to $7.95. For tipped employees, the new minimum increased 5 cents per hour to $3.98.
Twelve other states, including Arizona, Colorado, Connecticut, Florida, Missouri, Montana, New Jersey, New York, Oregon, Rhode Island, Vermont, and Washington, rang in the new year with an increase in minimum wage. These wage increases are anticipated to generate $169 million in economic growth, according to research performed by Economic Policy Institute.
Ohio is among 21 states that currently have their minimum wages set higher than the federal level of $7.25 per hour. Since 2006, Ohio’s minimum wage began to automatically adjust, with increases implemented each January, based on inflation as determined by the Consumer Price Index.
Many of the surrounding states, including Indiana, Pennsylvania, Kentucky, and West Virginia abide by the federal minimum rate. Washington, conversely, has a rate of $9.32 an hour and California is expected to increase its minimum of $8 to $9 in July 2014.
The Economic Policy Institute estimates that the increases will boost the incomes of 2.5 million low-wage American workers, including approximately 330,000 workers in Ohio, this year.
Jackie Siekmann, Kroger Company’s Media and Government Relations Manager, discussed how the supermarket will manage the increase. “We have known about this increase for some time, and we incorporated it into our operational budget. Just like in past years, we are prepared for the increase and have that expense covered.
She added, “It does not mean an increase in grocery prices. It also will not affect our hiring plans for 2014.”
According to the Bureau of Labor Statistics (BLS), 3.6 million hourly paid workers received wages at or below the federal minimum in 2012.The BLS further noted that leisure and hospitality was the industry with the highest proportion of workers with hourly wages at or below the federal minimum wage (about 19 percent) in 2012.
While some backlash has been posed towards raising minimum wage, support is seen from President Obama, who is a proponent of the Harkin-Miller bill, also known as the Fair Minimum Wage Act. This proposal would increase the federal minimum wage to $10.10 per hour over the next two years.
“It does not mean an increase in grocery prices. It also will not affect our hiring plans for 2014,” said Jackie Siekmann.
