By Lowkell | March 30, 2020
From the Commonwealth Institute for Fiscal Analysis:
New Minimum Wage Legislation Will Strengthen Virginia’s Families & Economy
Nearly 800,000 people will benefit, including essential workers during COVID-19
In the 2020 session, the General Assembly passed historic legislation to increase the minimum wage in Virginia for the first time in more than 11 years. The bill, if signed into law, will increase the minimum wage from $7.25 to $9.50 on January 1, 2021. Virginia’s minimum wage would reach $12 by 2023. The discussion in this piece:
Explains how minimum wage increases help to stimulate the economy, including in times of recession.
Demonstrates that many working people who are assisting our communities during the COVID-19 pandemic would benefit from a higher minimum wage.
Highlights how increasing the minimum wage is of particular importance to working people of color in Virginia.
| Year | Minimum Wage | Total Virginia Workers Impacted | Total Workers of Color Impacted |
Change In Average Annual Earnings For All Impacted Workers | Impacted Workers With Annual Household Incomes Below $50,000 |
|---|---|---|---|---|---|
| 2021 | $9.50 | 409,000 | 207,000 | +$881 | 229,000 |
| 2022 | $11.00 | 691,000 | 350,000 | +$1,412 | 387,000 |
| 2023 | $12.00 | 788,000 | 398,000 | +1,890 | 439,000 |