Thursday, December 29, 2011

Montana's Minimum Wage Receives a Boost

The minimum wage in Montana will be increasing by $0.30 on January 1, 2012.  This increase puts Montana $0.40 above the federal minimum wage.  Washington, Oregon, Colorado and Arizona are among the other states that will be increasing the minimum wage in 2012.  Along with Arizona, Montana has the 8th highest minimum wage.  Here is a look at where Montana sits in comparison to the rest of the U.S.

$7.25 Federal Minimum Wage, Mississippi, Louisiana, Alabama, Tennessee, South Carolina
$5.15 Wyoming
$6.25 Arkansas
$7.25 Hawaii, Idaho, Indiana, Kentucky, Maryland, Minnesota, Missouri, Delaware, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Nebraska, South Dakota, Texas, Pennsylvania, Virginia, Utah, West Virginia, Wisconsin, Iowa, Kansas, Georgia
$7.31 Florida
$7.40 Michigan, Rhode Island
$7.50 Maine, New Mexico
$7.64 Colorado
$7.65 Montana, Arizona
$7.70 Ohio
$7.75 Alaska
$8.00 California, Massachusettes
$8.15 Vermont
$8.25 Illinois, Connecticut, Nevada
$8.80 Oregon
$9.04 Washington

“As the cost of living continues to increase, the law passed by Montanans in 2006, helps those making minimum wage keep their head above water,” said Labor Commissioner Keith Kelly. The Montana minimun wage will increase from $7.35 to $7.65 on January 1st 2012.

The increase is based on an increase in the Consumer Price Index (CPI) from August 2010 to August 2011.  The CPI for the preceding year was 3.8%.  Thus, the calculation used for determining the minimum wage rate for 2012 is: $7.35 X .038% = $.28, rounded to $0.30

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