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National Restaurant Association - States increase minimum wage rates

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States increase minimum wage rates

Arizona, Missouri and Vermont will increase their minimum wages effective Jan. 1, 2013, state labor departments recently announced.

Arizona's wage will climb to $7.80 per hour from $7.65, with a minimum cash wage for tipped employees of $4.80 an hour, up from $4.65. Missouri's starting wage will rise to $7.35 from $7.25; tipped employees in the state must be paid a minimum cash wage of $3.675, up from $3.625.

In Vermont, the Labor Department has announced the state minimum wage will increase to $8.60 on Jan. 1, 2013, from $8.46, with the minimum cash wage for tipped employees increasing to $4.17 from $4.10.

Arizona, Missouri and Vermont are among 10 states and four U.S. cities that automatically index their wages to keep pace with inflation each year.

Of the remaining seven states that tie annual wage increases to inflation, five -- Florida, Montana, Ohio, Oregon and Washington -- announced their wage increases earlier this fall. Colorado is expected to approve a new 2013 wage level this month, and Nevada typically adjusts its wage on July 1 rather than Jan. 1.

Four cities also tie their wages to inflation.

The minimum wage in Santa Fe, N.M., currently the highest in the nation at $10.29 an hour, could be set for another increase in March 2013, although business owners have begun pushing local legislators to freeze the rate.

San Francisco recently announced its minimum wage will rise to $10.55 an hour on Jan. 1, 2013, from $10.24.

And voters in San Jose, Calif., and Albuquerque, N.M., this month approved wage hikes for 2013, with mandatory annual indexing thereafter. Albuquerque's increase takes effect Jan. 1, moving the starting wage to $8.50. San Jose's voter-approved minimum wage increase will move the wage to $10 an hour by mid-March, 2013.

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