Since its first implementation in 1938, the United States has seen a number of changes in the minimum wage. The amount of the mandated minimum wage has been determined by both the federal government and each individual state. Though the federal minimum wage was once the same for all Americans, in 2021 the minimum wage can vary from state to state, based on a variety of factors such as cost of living and regional economies. This being said, the planned increases to the minimum wage can differ from state to state as well. When looking at the specific state of North Dakota, we can predict the minimum wage increase in the coming year of 2023.
At present, the minimum wage in North Dakota is the same as the federal minimum wage, set at 7.25 per hour. This wage applies to both adult and minor workers, but due to the state’s 2019 passage of SB 2275, there are plans to raise the minimum wage to $10 by 2021. These wage increases begin with annual increments of six cents in 2021, seven cents in 2022, and six cents in 2023. This means that in 2023, North Dakota’s minimum wage is likely to rise to $10.19 per hour.
These wage increases strive to improve the economic situation of those working in the state of North Dakota. With the annual increase to its minimum wage, those currently making the minimum wage can count on greater disposable income each year, helping them to better provide for themselves and their families. Moreover, this wage increase incentivize more people to enter the workforce, with more people looking for more jobs to keep up with expected wage increases.
In addition to wage increases, the recent North Dakota wage increase proposal also includes provisions to help protect workers from wage theft. Under the 2020 wage increase, employers are required to provide employees with their wages in a “timely manner”, paying late wages no later than 36 hours from when they are due. Penalties for failing to adhere to these rules include fines that must to paid to both the employee and the state labor department.
Though the planned minimum wage increases come with positive changes for workers, the impacts of these raises must also be weighed. Business owners may take the brunt of these raises, as the costs of paying their employees the mandated wage can lead to their profit margins shrinking . Furthermore, companies may have to raise the prices of their goods and services in order to make up for their increased costs, leading to increased prices for consumers.
All in all, North Dakota has plans to increase its minimum wage in 2023, with the wage likely reaching $10.19 per hour. These wage increases can give workers in the state greater economic freedom, while also introducing provisions to help protect them from wage theft. Simultaneously, businesses must also consider the impact of their profit margins when weighing their wages. Regardless, it’s important to continue to evaluate minimum wage and how it affects everyone involved.
