- Hawaii will raise minimum wages 16.7%, Nebraska 14.3%, Maryland 13% and Delaware 12.8%.
- The most notable wage increase of all may be California’s targeting fast-food companies, which beginning on April 1, 2024, requires big employers like McDonald’s and Chipotle to pay the state’s estimated 500,000 fast-food workers at least $20 per hour.
- But employers of all sizes need to figure out where the money is going to come from, likely meaning more scrutiny of benefits costs, overall staffing levels, and prices charged to consumers.
More wage hikes are coming across U.S. states in 2024 and many Main Street businesses may feel the pinch.
Not only are wages generally up from year-ago figures given the hot labor market, but minimum wage rates are rising in many states as a result of new laws. These can be a double-whammy to small businesses already dealing with inflationary pressures. At the same time, businesses know they need to pay more to attract top talent.
“It’s a very precarious situation that small businesses find themselves in,” said Steve Hall, vice president of economic development lending at the Local Initiatives Support Corporation, a community development financial institution.
Here are some of the biggest wage hikes set to impact Main Street in the coming year:
California fast-food workers
Beginning on April 1, 2024, California’s minimum wage for the state’s 500,000 fast-food workers will increase to $20 per hour. By comparison, the average hourly wage for fast-food workers in 2022 was $16.21, according to a state release announcing the change, which cites a 2022 research brief from The Shift Project think tank.
Companies like McDonald’s and Chipotle have already said they are likely to raise prices to counteract the impact of the new law.
www.cnbc.com/2023/11/11/on-main-street-time-to-prepare-for-the-new-minimum-wage-hikes-in-2024.html