The minimum wage is a hot-button issue in the United States, and it seems like it is constantly changing. Over time, many states increased their minimum wage, and there are talks of increasing the federal minimum wage to $15 an hour. Many people are wondering if Indiana will be one of the states that raise its minimum wage this year. In this blog post, we will explore the current state of minimum wage in Indianapolis in 2022 and what factors could affect any potential changes.
Will Indiana Increase Its Minimum Wage This Year?
Other states have debated this and have increased their minimum wage founded on various estimates with the consumer price index. However, the state of Indiana has not increased its minimum wage since 2008 when it was increased from $6.65 to $7.25 an hour.
Overall, the short answer is: that we don’t know yet. The state has been debating the issue for years, and recently the Indiana General Assembly bill proposes to increase the minimum wage to $10 an hour by 2022. Afterwhich, it will increase by one dollar each year until it reaches $15 an hour in 2025.
How Do The Indiana State Minimum Wage Laws Work?
The current minimum wage in Indiana is similar to that of the federal minimum wage, $7.25 an hour.
There are a few exceptions to the minimum wage laws in Indiana:
- High-school or college students can be paid $6.16 per hour which is 85% of Indiana’s minimum wage.
- Employees who receive tips can be paid a minimum of $2.13 an hour. The employer can take a $5.12 credit for each hour of work to make up the difference.
- Lastly, employees undergoing specialized training or temporary jobs such as temp-to-hire can receive an hourly salary of $4.25 for the first 90 days of their temp job.
What Factors Affect Changes in Minimum Wage?
The minimum wage in the United States seems like it is constantly changing. With states constantly debating whether to raise the minimum wage, it can be hard to keep up with the latest news. Here are a few factors that could affect any potential changes in the minimum wage:
- The cost of living: In order to keep up with the rising cost of living, many states have increased their minimum wage. Therefore if the cost of living goes up, the minimum wage will usually follow suit.
- The federal minimum wage: The federal minimum wage is the hourly salary that an employee must be paid, and it currently stands at $7.25 an hour.
- The state of the economy: Minimum wage is often a contentious issue during economic downturns. Overall, if the economy is doing well, businesses can afford to pay their employees more.
- Politics: With all things in the United States, politics can play a significant role in minimum wage changes. Sometimes, lawmakers will increase the minimum wage to get re-elected.
So, Will Indiana Increase Its Minimum Wage This Year?
As of right now, we don’t know. The state is still debating the issue and there is no clear consensus. However, if the cost of living goes up or the economy improves, the minimum wage will likely increase as well. Only time will tell for sure.
Overall, understanding the intricate details of the minimum wage as a whole can be difficult, but it is important to stay updated on the latest news. Minimum wage increases can affect everyone, from employers to employees, so it is important to be informed.