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More than 2 million Americans are getting raises, thanks to states' minimum wage increases

Nov 10, 2016, 00:31 IST

A McDonald's employee passes an order to a driver at a drive through restaurant in Los AngelesLucy Nicholson/Reuters

Four states voted on Tuesday to increase the minimum wage.

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In Maine, Arizona, Colorado, and Washington, voters passed ballot measures to increase the minimum wage to at least $12 an hour by 2020. More than two million people will receive pay raises thanks to the new laws.

In Arizona, Proposition 206 will raise the minimum wage from $8.05 an hour to $10 an hour by 2017 and $12 an hour by 2020. The change will impact an estimated 790,000 workers - 30% of the state's workforce.

Washington's Initiative 1433 will raise the statewide minimum wage to $13.50 an hour over the next four years, impacting an estimated 730,000. The initiative also gives every worker in the state the opportunity to earn paid sick leave.

Colorado voted to increase pay for an estimated 20% of the state's workers, or about 560,000 people. The current minimum wage of $8.31 an hour will rise to $12 an hour by 2020.

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Maine adopted a similar policy, raising the minimum wage to $12 an hour by 2020 - up from $7.50 an hour - a change that will impact 181,000 workers.

The federal minimum wage of $7.25 an hour hasn't changed since 2009 and Congress has blocked numerous attempts to raise it.

Fast-food workers and their supporters join a nationwide protest for higher wages and union rights in Los Angeles, California, United States, in this file photo taken November 10, 2015.REUTERS/Lucy Nicholson/Files

Across the US, proposals to increase minimum wages have been opposed by critics who claim that higher pay would hurt business owners, and would ultimately result in lower employment rates.

"Twice I've talked to groups of franchisees here in Arizona, Taco Bell and McDonalds, those places that give you the first rung on the ladder," Sen. John McCain said in September, arguing against the state's proposition to raise wages. "They cannot raise their cost of their product or people will stop purchasing it. So what are they going to do? They're going to automate. So somebody is going to have to convince me that it's good for employment in America, and I don't think it is."

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But there's a ton of research that shows raising wages does not lead to massive job cuts. And not every business owner is opposed to raising the minimum wage.

"We haven't had an increase in the federal minimum wage in seven years. That's crazy!" Bill Phelps, co-founder and CEO of Pasadena, California-based Wetzel's Pretzels, said in a statement on Wednesday. "We've experienced strong sales growth after minimum wage increases. Raising the minimum wage is good for our bottom line."

One state rejected a proposal to actually lower the minimum wage on Tuesday.

South Dakota's proposed law to lower the minimum wage from $8.55 an hour to $7.50 an hour for minors failed to pass, with 71% of voters rejecting the measure.

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