Minimum Wage Increases in Northeastern States

Minimum Wage Increases in Some Northeastern States in 2022

According 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

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

dairy industry as holding its own and at a good point in its recovery. Others are content to remain stable right now with the hopes that 2022 will bring some growth and issues related to the pandemic will continue to resolve. Specific parts of the industry, like ice cream and cheese, continue to do well, although predicting the availability of ingredients still holds uncertainties that don’t have anyone breathing easy just yet. Retail and at-home consumption of dairy seems to remain the primary success story, as restaurants still struggle, and the status of school openings continue to fluctuate. And, while plant-based items continue to steal some volume, a few members noted that consumers realize that real dairy products “eat much better” than plant alternatives.

It should be said that this survey was not returned by all members and is not meant to be a complete picture of the opinions of the entire membership of both associations. However, the common denominators of those who responded were clear.

Thankfully, despite the hardships and the reality that COVID-19 is still around, those in the dairy industry are historically used to ups-and-downs, hard work and pride in the role dairy plays in feeding our country and beyond. No members responded that they were ready to throw in the towel or were fearing the worst. Most simply believe that 2022 will be better, but probably not bring the recovery many had hoped would be here by now.

Caroline K. Reff is the editor of Northeast Dairy magazine.

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