Good news for workers, but more work for Payroll pros: Some states and cities are hiking their minimum wages to adjust for inflation.

Ten states and two major cities make annual cost-of-living adjustments to the local minimum wage. These minimum wages will take effect Jan. 1, unless otherwise noted:

• Arizona — $7.25
• Colorado — $7.28
• Florida — $7.21 (additional increase to $7.25 on 7/24/09)
• Missouri — $7.05 ($7.25 on 7/24/09); Tip credit increases to $3.525, and to $3.625 on 7/24/09
• Montana — $6.90 ($7.25 on 7/24/09); $4.00 if gross annual sales are $100k or less
• Ohio — $7.30; $6.55 if annual gross receipts are less than $267k (increases to $7.25  on 7/24/09); Tip credit increases to $3.65
• Oregon — $8.40
• Vermont — $8.06; Tip credit increases to $4.15
• Washington — $8.55

The cities with announced wage increases are:

• San Francisco — $9.79
• Sana Fe, NM — $9.92.

Tags: Compliance, Minimum wage, New rates, Payroll, Resource