It is a new year and a new decade. And while many are making resolutions to better themselves, many of the New England states are continuing their promise to raise minimum wage every calendar year. In the past, we wrote a short piece on how Massachusetts’ plan to continually raise minimum wage over the next few years would greatly influence pricing for services like commercial cleaning. Now that we have entered a new decade, we are continuing to see a rise in minimum wage which will translate to higher costs throughout New England.
New England States That Raised Minimum Wage in 2020
As mentioned in our previous blog, when the minimum wage is raised in one New England state it greatly affects costs in the bordering areas. The gap in wages between states creates pricing challenges for companies that rely on minimum wage rates for their team. Clients will generally want to work with companies in low minimum wage states to save money, but conversely many employees will apply for companies that offer higher minimum wages. Generally, companies that serve clients in multiple states will pay based on the highest minimum wage in their service area, so that they can retain a staff of professionals that provide quality services. 2020, has seen the following minimum wage changes in New England.
- Massachusetts: Effective on January 1st, 2020, the minimum wage for Massachusetts has been raised to $12.75 and will continue to increase to $15.00 by 2023
- Vermont: On January 1st, 2020, the Vermont minimum wage increased to $10.96.
- Maine: Maine increased its minimum wage a full dollar to $12.00 on January 1st.
- Connecticut: Connecticut is still at an $11.00 minimum wage that will increase to $12.00 on September 1st, 2020.
- Rhode Island: Rhode Island’s minimum wage increased to $11.50 for 2020.
- New Hampshire: Vermont is the only New England state to neither raise their minimum wage or have a minimum wage over $10. Their minimum wage remains at $7.25.
What New Minimum Wages Means For Commercial Cleaning
With all of the New England states relatively close together, it is not uncommon for workers to commute from a state like New Hampshire to a higher paying state like Vermont, Maine, or Massachusetts. For this reason, the common pricing for Commercial Cleaning is based closer to the minimum wages found in these states. With Massachusetts leading the way in minimum wage changes, many commercial cleaning companies based in Massachusetts have continued to hire the best workers who are willing to commute from their home state. Although prices for a Massachusetts company may be slightly higher, the quality of the service is also likely to increase.
Keeping Pricing Competitive For Commercial Cleaning
As mentioned above, the gap between minimum wages in bordering states has created a system where states with low minimum wage will have lower costs but may lack in quality. Any seasoned property manager knows that an insufficient cleaning job is a waste of money. Often times hiring a cleaning company to clean up after an underperforming competitor can waste time and drive up management costs. That is why it is important to search for companies that have a dedicated staff of cleaners and can ensure high quality consistently.
Quality Commercial Cleaning in New England
Champion Cleaning provides all-encompassing cleaning services for apartments, condos, and offices throughout Massachusetts, & New Hampshire, as well as our highly-valued professional post-construction cleaning services. As the old adage goes “measure twice, cut once”. The same is true for commercial cleaning. Choosing a cleaner like Champion Cleaners will ensure that you get the results you want the first time. Contact us by calling 800-979-1911 or by contacting us through our online contact form.