LOADINGERROR LOADINGMillions of workers can expect a raise in the new year as state and local governments around the country increase their minimum wages.Twenty-one states and more than 40 U.S.cities and counties will bump up their wage floors for 2025, most of them adjusting rates to account for inflation.
Eight states will meet or exceed a minimum wage of $15 per hour.Advertisement Another five states and 23 cities and counties will hike their minimums later in the year, according to the National Employment Law Project, an advocacy group that published an analysis of the scheduled increases.The group says the number of increases across the U.S.is a record, driven by successful legislation and ballot measures in recent years.
Most new laws tie the wage rate to an inflation index so that it rises with the cost of living.The idea of raising the minimum wage is immensely popular with voters, including in conservative states.Missouri and Alaska just approved measures in November to hike their wage floors to $15 by 2026 and 2027, respectively, even though President-elect Donald Trump easily won both states.
Advertisement The Economic Policy Institute, a left-leaning think tank, estimates that more than 9 million workers around the country will get raises on Jan.1, with an average increase of about $400 for the year for those who work full-time.
EPI says most of those workers will be women, and a disproportionate share will be Black or Latino.Looming minimum wage increases, as compiled by EPI:The federal minimum wage is just $7.25 per hour and prevails in any state that doesn’t mandate a higher minimum.
But a majority of states now require employers to pay above the federal rate, some more than double.Advertisement At the same time, many cities and counties, primarily in liberal areas, have implemented minimum wages higher than their state levels.
Most of the local increases in 2025 will take place in California, Colorado and Washington.The highes...