More than half the states in the U.S. are set to lift their minimum wages in the coming year, but the effects could be muted because many low-income workers already earn more than mandated due to strong labor demand. Wages have surged, particularly for low-wage workers, since the pandemic for several reasons, including widespread labor shortages. Many employers say they have to pay more than federal, state and local minimum wages to recruit and hold on to restaurant servers, hotel housekeepers, retail store clerks and other employees.

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