The Department of Labor estimates that, since July 2009, the cost of living has increased by nearly 12% nationwide. Nonetheless, the federal minimum wage has remained locked at $7.25 per hour since that time. Recent attempts to increase that minimum wage were blocked by republican majorities in the legislature. However, in recognition of the increased cost of living, many states, counties, and cities increased the required minimum wage. As of July 1, 2017, employers in some areas of the country will be required to abide by new minimum wage requirements.
Counties, cities, and states with new minimum wage requirements:
- Chicago – $11 per hour;
- Cook County, IL – $10 per hour;
- Flagstaff, AZ – $10.50 per hour;
- Los Angeles County – $12 per hour ($10.50 for employers with 25 or less employees);
- Maryland – $9.25 per hour;
- Montgomery County, MD – $11.50 per hour;
- Oregon – $10.25 per hour ($10 for rural counties);
- Pasadena, CA – $12 for larger employers ($10.50 for smaller employers);
- Portland, OR – $11.25 per hour for metropolitan area;
- San Francisco – $14 per hour;
- San Jose – $12 per hour; and
- Washington, DC – $12.50 per hour.
Employees in these areas should be aware of these increases and understand that, even if they are paid on a salary basis, when their salary is reduced to an hourly rate, the hourly rate should still meet the new minimum wage requirements identified above.