Twenty-two states increased the minimum wage. Where does your state stand?
Workers earning minimum wage have a reason to celebrate in 2024. A wave of higher minimum wages rolled out across 22 states on January 1, signaling a potential economic upswing for nearly 10 million workers, according to the latest estimates.
This upward shift in baseline wages is projected to inject an additional $7 billion annually into the pockets of around 9.9 million workers, as highlighted in a research post by the Economic Policy Institute. Notably, these increases will set the baseline pay at a minimum of $16 per hour in three states: California, New York, and Washington.
But that’s not all — in addition to these state-level adjustments, 38 cities and counties have also chosen to jump on the bandwagon, contributing to the broader effort to enhance wage standards.
The timing of these minimum wage increases couldn’t be more crucial. Workers have been grappling with rising costs due to inflation, which, after hitting a 40-year high in 2022, is starting to ease. Interestingly, twelve of the states implementing these wage increases have tied their baseline pay to inflation, ensuring an annual adjustment that shields workers from a decline in purchasing power as prices rise.
While these state-level strides are commendable, it’s worth noting that the federal minimum wage has remained stagnant since 2009, holding steady at $7.25 per hour. This is especially significant given that inflation has surged by over 40% during this period.
Looking ahead, three additional states — Florida, Nevada, and Oregon — are set to join the wage movement later in 2024. Nevada and Oregon will witness new baseline wage rates come into effect on July 1, while Florida’s minimum wage is slated to increase on September 30.
The ongoing discussion around the federal minimum wage remains relevant. Despite numerous employers proactively raising their entry-level wages to remain competitive in a tight labor market, the EPI underscores the importance of higher baseline wages. These serve to solidify wage gains for workers, even in the context of a federal minimum wage that has not kept pace with the cost of living, remaining at $7.25 per hour.
With the implementation of state wage hikes on January 1, a majority of workers in six states — California, Connecticut, Maryland, New Jersey, New York, and Washington — are now guaranteed baseline pay exceeding double the federal minimum wage. However, it is noteworthy that 20 states continue to maintain a baseline wage of $7.25 per hour, primarily concentrated in the South and Midwest, spanning from Alabama to Wisconsin.
State minimum wage increases in 2024*
Alaska: $11.73, up from $10.85
Arizona: $14.35, up from $13.85
California: $16, up from $15.50
Colorado: $14.42 (proposed), up from $13.65
Connecticut: $15.69, up from $15
Delaware: $13.25, up from $11.75
Florida: $13, up from $12, on September 30
Hawaii: $14, up from $12
Ilinois: $14, up from $13
Maine: $14.15, up from $13.80
Maryland: $15, up from $13.25 for large employers and $12.80 for small employers
Michigan: $10.33, up from $10.10
Minnesota: $10.85 for large employers, up from $10.59; $8.85, up from $8.63 for others
Missouri: $12.30, up from $12
Montana: $10.30, up from $9.95
Nebraska: $12, up from $10.50
Nevada: $12, up from a $10.25 or $11.25 (depending on health benefits) — effective July 1, 2024
New Jersey: $15.13, up from $14.13
New York: $15, up from $14.20 (except in New York City, Westchester and Long Island, where it is set at $16, up from $15)
Ohio: $10.45, up from $10.10
Oregon: Its $14.20 minimum wage will adjust for inflation on July 1
Rhode Island: $14, up from $13
South Dakota: $11.20
Vermont: $13.67, up from $13.18
Washington: $16.28, up from $15.74
District of Columbia: Its $17 minimum wage will adjust for inflation on July 1
*Unless otherwise noted, changes take effect on January 1
