Washington, D.C. boasts a minimum wage of $18.40 per hour, the highest state-level minimum wage in the United States, as of July this year. The District’s neighboring states, Maryland and Virginia, have established minimum wages of $15 and $12.77 per hour, respectively.

Minimum Wage Comparison

For minimum-wage workers, the incentive to commute to the District can be massive. A full-time cashier in D.C. grosses nearly $12,000 more per year than someone doing the identical job across the border in Virginia.

The wage gap could create a talent vacuum, with businesses in Virginia and Maryland possibly struggling to attract applicants as local workers flock to higher-paying jobs in D.C. Meanwhile, D.C. business owners may face pressure to raise prices to cover the $18.40 mandate, knowing competitors in Arlington or Alexandria can afford to charge less for the same goods.

The federal minimum wage currently sits at $7.25 an hour, a rate that Congress has not increased since July 2009. A worker earning D.C.’s $18.40 minimum is making over two and a half times the federal baseline.

Original reporting: Arlington County | FOX 5 DC — read the source article.