Site Selection Group Releases Report on Minimum Wage Trends in U.S.
by King White, on Oct 31, 2022 9:00:00 AM
Minimum wage laws continue to be a hot topic across the U.S. due to the increased cost of living, tight labor conditions and mounting political pressure. As a result, the minimum wage in many states has increased over the last five years creating challenges for companies trying to control costs at existing locations and plan for new sites. These rising rates have especially impacted labor availability and labor costs for employers paying slightly above minimum wage. Retail, call center warehouse and unskilled production workers will be among those most affected by the continued minimum wage increases. To understand the potential impact on your location decisions, Site Selection Group released the 2022 Minimum Wage Whitepaper which summarizes minimum wage trends across the United States to help you make informed site selection decisions.
Minimum Wages by State
Minimum wage laws continue to change across the United States. As of September 30, 2022, the following map indicates the minimum wages across all states, ranging from states without a minimum wage to over $16 per hour.
Minimum wage will continue to be a critical item that companies need to carefully monitor as many factors are influencing their changes. This report primarily focuses on state and federal minimum wages, but it is also important for companies to evaluate municipal-level minimum wages as many cities have their own laws and regulations in this matter. Some examples include Denver, which will increase to $17.29 starting January 1, 2023; San Francisco, which increased its minimum wage to $16.99 as of July 1, 2022; and Seattle, which increased its minimum wage to correlate with the employee size of the company. Seattle employers of 501 or more employees pay a minimum wage of $17.27.
While this report provides insight into minimum wage trends, companies need to consider all location factors when making site selection decisions. These factors include labor availability, labor costs, logistics, business climate, real estate, economic incentives and other conditions that are specific to a company’s industry or operation type.
Click here to download the full report or one of our experts at Site Selection Group.