May 16, 2022 Last Updated 08:33 AM EDT

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14 US states will increase minimum wage in 2016

Jan 03, 2016 09:42 PM EST

The majority of states in the United States including major cities will implement new minimum wage rate starting this year as workers continue to strike and demanding a better payment. Workers have been under pressure lately as the cost of living continues to increase yet their minimum wage remains the same.

According to Telesur TV, current minimum wage set by the federal government is still $7.25 per hour and has not been increased for over six years. So far, fourteen states had expressed their plan for a hike from the current average of $9 per hour in their states to an amount which will be revealed soon.

From all 14 states, few states increase their minimum wage by $1 which is the highest compared to other states. These states are Alaska, California, and Massachusetts. All these states increase the minimum wage to $10 per hour.

The Inquisitr reported that among 14 states pledge for a wage hike, South Dakota give the lowest increase which is only $0.05. However, the state's minimum wage previously are around $8.50 per hour.

Besides the 14 states, there will be two additional states that will be implementing new minimum wage automatically based on the increasing cost of living. The new rate will be automatically implemented starting on the 1st of January.

The two states are Colorado and South Dakota based on the National Conference of State Legislatures signed by them.

Although the news is welcomed by the workers, there is some organization that against the move by these states. Among this organization is the National Federation of Independent Business. According to its spokesperson, Jack Mozloom, "Businesses, whose sales are not increasing at the same pace as wages are increasing, are going to face difficult decisions."

However, according to another party supporting the latest moves, Alissa Barron-Menza from Business for a Fair Minimum Wage told the NBC News, "Consumer demand and income levels have not recovered in the wake of the Great Recession and raising the minimum wage is a very effective tool in boosting consumer demand."

Previously, a number of companies had taken independent moves to increase their minimum wage as a way to motivate their workers. Among these companies are McDonald's, Facebook and other small business.

The White House is in full force mode supporting a new and higher federal minimum wage to around $12 or $15 per hour and they are expected to continue debating the matter. Congress is planning to implement the new rate by 2020.

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