Many states increased their minimum wage this year and state minimum wage increases will continue over the next couple of years edging close to and even above the potential federal increase to $10.10 per hour.  This is creating a concern regarding pay compression and the cost of maintaining equitable pay differentials among all employees and their supervisors and managers.  A minimum wage increase not only raises the wages of workers in entry level positions, it also can create pay compression issues as entry level worker wages creep closer to the wages of more experienced and tenured employees. Many organizations are already experiencing pay compression due to several consecutive years of modest annual salary increases between 2 and 4 percent, while salaries of new hires are often exceeding that of incumbents.

(WageWatch)  Read the complete article