Highest US minimum wage: How DC compares to Maryland and Virginia

WASHINGTON, D.C. - For some workers in the DMV, a 15-minute Metro ride could dictate whether they earn the nation's highest minimum wage or thousands of dollars less per year.

By the numbers:

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. However, the District's neighboring states take vastly different approaches.

Maryland has established a $15 statewide floor, with counties like Montgomery pushing higher to $17.65. Meanwhile, Virginia anchors the region's low end at $12.77 an hour.

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.

Dig deeper:

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.

Federal baseline

Big picture view:

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.

Washington, D.C.Money