Upcoming Minimum Wage Boosts Across the USA
Get ready for fatter paychecks in the New Year! Here's a rundown of the states preparing to raise their minimum wage prices. The boost can be chalked up to planned hikes or guidelines tying the minimum wage to inflation, often using the consumer price index as a benchmark.
Seven states, along with D.C., will hit a minimum wage of $15 or more by January 1, 2024, with a surge in participants. States like Maryland, New Jersey, and most of New York State (excluding NYC, Westchester, and Long Island, which already boast a $15 minimum wage) join the club for the first time. Even Washington, D.C., is getting in on the action with an increased minimum wage this year. In this state, the minimum wage will keep climbing, hitting $16 in 2024.
California takes the lead among high-minimum-wage states in 2024, with a minimum wage jumping from $15.50 to $16. Washington State is not far behind, with their minimum wage setting at a whopping $16.28.
Hawaii is in for the biggest leap, raising its minimum wage by $2 next year.
It's important to note that January 1 isn't the only day for minimum wage hikes. Nevada and Oregon have already scheduled their increases for July 1, while Florida is eying a September 30 lift.
Local Minimum Wage Rises
In many cases, state minimum wages fall short of their local counterparts, with cities and counties often under more stringent rules.
A city right outside Seattle called Tukwila, for instance, will see its minimum wage jump to $18.99 on January 1. With this upgrade, Tukwila will join other high-minimum-wage areas.
Wage Increases by Industry and Profession
In specific sectors, wage hikes can be more pronounced. California, for example, mandates an hourly wage of at least $20 for fast-food workers starting in April 2024. Those in the healthcare sector will start earning between $18 and $23 an hour, depending on the size and type of their employer, from June 1 onwards. By the end of 2024, the minimum wage will rise to $25 an hour.
In New York City, gig economy workers, like Uber, Grubhub, and DoorDash deliveries, must now earn a minimum wage of $17.96 an hour (set to climb to $19.96 by 2025).
Affordable Paychecks Propel Progress
With the federal minimum wage set at $7.25 a decade ago, purchasing power for working people has steadily dropped. Much-needed salary hikes are the result, growing calls for inflation-adjusted minimum wages.
Holly Sklar, CEO of the Fair Minimum Wage coalition, suggests basing the minimum wage on the rate of 1968, when it was $1.60. In today's money, that would be around $14.39 an hour. Using data from the MIT Living Wage Calculator, Sklar highlights the importance of considering the cost of living as workers in fields like childcare, short-order cooking, and cashiering see below-average wages.
In Mississippi, for example, the minimum wage sits at $7.25, yet in Pike County, the cost of living necessitates a minimum wage of $15.30 an hour. Sklar points out that while half of the childcare, short-order cooking, and cashier workforce in the U.S. currently earns less than $10.50 an hour, the average wage for these professions is between $9.83 and $10.17 an hour.
States and Local Governments Drive Minimum Wage Hikes
Absenting federal action, Sklar predicts that states and local governments will take the lead in lifting minimum wages. She underscores the compelling reasons for both workers and businesses to support wage increases, ranging from improved worker morale and reduced turnover to increased consumer spending and strengthened, long-term relationships between employers and employees.
State-by-State Minimum Wage Schedule
Alaska: $11.73 (growing to $11.91 in 2025)
Arizona: $14.35 (jumping to $14.70 in 2025) California: $16.00 (gradually increasing to $16.50 in 2025)
Colorado: $14.42 (suggested rise, actually $14.81 in 2025)
Connecticut: $15.69 (advancing to $16.35 in 2025)
Delaware: $13.25 (elevating to $15.00 in 2026)
Florida: $13.00, remaining the same from 2024 to 2025
Hawaii: $14.00 (soaring to $16.00 in 2026)
Illinois: $14.00 (up to $15.00 in 2025)
Maine: $14.15 (climbing to $14.65 in 2025); $12.80 for small employers
Michigan: $10.33 (ascending to $12.48 on February 21, 2025)
Minnesota: $10.85 or $8.85 (for big and small employers, respectively)
Missouri: $12.30 (moving to $13.75 in 2025)
Montana: $10.30 (growing to $10.55 in 2025)
Nebraska: $12.00 (climbing to $13.50 in 2025)
Nevada: $12.00 or $11.25 (depending on health care benefits), pitying July 1, 2024
New Jersey: $15.13 (becoming $15.49 in 2025)
New York: $15.00 (with a $16.00 minimum wage in NYC, Long Island, and Westchester)
Ohio: $10.45 (advancing to $10.70 in 2025)
Oregon: $14.20 (adjusting for inflation on July 1, 2024)
Rhode Island: $14.00 (stepping up to $15.00 in 2025)
South Dakota: $11.20
Vermont: $13.67 (rising to $14.01 in 2025)
Washington: $16.28 (jumping to $16.66 in 2025)
D.C.: $17.00 (adjusting for inflation on July 1, 2024)
(Changes take effect on January 1, unless stated otherwise)
