minimum wage

A new report from the Federal Reserve Bank of Cleveland shows a rise in employers who are underpaying their workers, particularly at businesses like hotels, restaurants and grocery stores.

By this time next year, more states will have a minimum wage of at least $15 an hour than those where workers receive the federal minimum wage of $7.25 an hour.

The wage hikes are likely a move to remain competitive.

The $7.25 federal minimum wage has not changed for more than 15 years, but state and local increases have proved popular with voters.

In Massachusetts and Arizona, voters will decide if a lower official wage for tipped workers should be phased out or made permanent.

The state’s $20-an-hour mandate pressures some outlets to raise prices and risk turning away low-income customers.

It’s the longest stretch of time Congress has gone without raising the federal minimum wage.

The federal floor is $7.25 an hour — but only around 1% of workers are paid that little. Several states and cities will hike their minimums July 1.

“Now, it is leaner crews,” says one restaurant server, but a more stable income. Other states are watching how it plays out in the capital.

In a dozen states, restaurants and worker advocates are fighting over how — and how much — tipped workers should be paid.