Ten states have minimum wage rates that are tied to inflation and adjust annually based on changes in the consumer price index (CPI).  These states include Arizona, Colorado, Florida, Missouri, Montana, Nevada, Ohio, Oregon, Vermont and Washington.

Many of these states have recently announced their 2011 minimum wage rates which will go into effect on January 1, 2011.

6 States Will Increase Their 2011 Minimum Wage Rates
Arizona, Montana, Ohio, Oregon, Vermont and Washington will increase their minimum wage rates in 2011.

Arizona will raise its minimum wage rate to $7.35 an hour in 2011, from $7.25 an hour.  This will put Arizona’s rate at 10 cents above the Federal minimum wage rate.

Montana's minimum wage rate will increase from $7.25 an hour to $7.35 an hour in 2011.

Ohio's minimum wage rate for non-tipped employees will rise to $7.40 an hour in 2011.  Since Ohio’s wage rate for tipped employees is set at 50% of the applicable minimum wage, the 2011 minimum wage rate for tipped employees will increase to $3.70 an hour, plus tips.

Oregon's minimum wage rate will rise to $8.50 an hour in 2011, from $8.40 an hour.  Oregon does not allow a tip credit.

Vermont’s 2011 minimum wage rate will increase to $8.15 an hour.  Vermont employers must pay tipped employees $3.95 an hour.  The maximum tip credit allowed is $4.20 an hour. 

Washington’s minimum wage rate for 2011 rises to $8.67 an hour, which is a 12 cent increase.  Washington does not allow a tip credit.  Employees between the ages of 14 and 15 can be paid 85 percent of the adult minimum wage, or $7.37 an hour.

2 States Won’t Change Their Minimum Wage Rates for 2011
State officials for Florida and Missouri said their minimum wage rates would remain unchanged for 2011… staying at $7.25 an hour.

What About Colorado and Nevada?
Colorado’s Department of Labor and Employment proposes to raise the state’s minimum wage rate to $7.36 an hour for non-tipped employees and $4.34 for tipped employees.  The department will hold a hearing on the proposal on November 5, 2010.  We’ll keep you posted on the outcome.

Nevada’s state labor department will release their new minimum wage rate in the spring of 2011, which will go into effect on July 1, 2011.

Download a Guide from the Employment Policies Institute Comparing Tipped and Minimum Wage Rates by State