Northeast Dairy Magazine | Q1 2022

Page 26

Minimum Wage Increases in Some Northeastern States in 2022

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ccording to the National Employment Law Project, Jan. 1, 2022 marked an increase in the minimum wage in 21 states, some reaching or exceeding $15 per hour. Six additional states have plans to increase their minimum wage by the end of 2022.

In the Northeast, the following states raised their minimum wage rates at the start of 2022: • Connecticut: From $13 to $14 • Maine: From $12.15 to $12.75, although the cities of Portland

and Rockland have raised the minimum wage to $13.

• Massachusetts: From $13.50 to $14.50 • New Jersey: From $12 to $13 • New York: From $12.50 in Upstate New York to $13.20; and

from $14 on Long Island and in Westchester to $15 (effective Dec. 31, 2021). The minimum wage in New York City remains at $15.

• Rhode Island: From $11.50 to $12.25 • Vermont: From $11.75 to $12.55

24 • Northeast Dairy Foods Association, Inc.

keep the dairy industry running. This cyclical domino effect has left many companies struggling. Companies are not giving up, but they are accepting that they have to do more with fewer people. “Efficiency, efficiency, efficiency,” one member commented. For some, this means focusing on their core business and most profitable products, noting that new product introductions may not be in the plans until at least later into 2022. Others are moving towards more automation when possible but say that lead times on equipment are long and cost is prohibitive. Others stated that, unfortunately, market growth may likely come at the cost of other players exiting the market. Some respondents said demand is up and booming, but gaps in the workforce are making it difficult to take advantage of many opportunities for business growth. Supply chain problems, along with transportation issues, are also a main concern, and one that, in many cases, are tied closely to the lack of workers. One respondent said supply chain has “far and away been a drag on the entire system,” and sees no relief in sight from the huge lag in LTL or ocean freight until late 2022 or even 2023. Long lead times and short deliveries of expected orders from suppliers have been a significant factor with many suppliers unable to even promise a delivery date or lock in a price due to the ongoing uncertainties. Inflation is certainly a factor, too, and higher prices are, of course, passed along to customers and consumers. Some respondents worry that higher prices may chip away at current growth as consumers become more selective with what and how much they pull from the supermarket shelves. Overall, the general sense from the survey was one more of frustration than hopelessness. Some businesses are growing and going strong, and many see the


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