- Washington state raised its minimum wage to $16.28 per hour on January 1
- California also implemented a minimum wage of $16.00/hour, up from $15.50
- An increasing number of states have minimum wages that adjust for inflation
Twenty-two states in the US have increased their minimum wages as of January 1.
Nine states along with Washington DC now have a minimum wage of at least $15.
Washington state has adopted a minimum wage of $16.28 per hour, making it the highest wage in the country. It went up from $15.74.
California has also implemented a minimum wage of $16.00 per hour – an increase from $15.50.
There is no minimum wage law in five southern states: Alabama, Louisiana, Mississippi, South Carolina and Tennessee.
Workers in those states receive a minimum wage of $7.25 per hour – a level it has remained at for the past fifteen years.
Last May, Senator Bernie Sanders proposed a bill that would increase interest rates by more than ten dollars.
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Washington state has introduced a minimum wage of $16.28 per hour starting January 1
In 2023, unions in several industries put significant pressure on large companies to increase the wages they pay their workers.
The United Autoworkers Union (UAW) successfully negotiated wage increases with the Big Three automakers, while the Teamsters represented UPS workers in negotiations that saw more than 300,000 full- and part-time workers receive raises.
In many states, wages have increased all at the same time, as more and more states adopt policies that involve raising their minimum wage in line with inflation.
These states include: Alaska ($11.73), Arizona ($14.35), California ($16.00), Colorado ($14.42), Maine ($14.15), Michigan ($10.33), Minnesota ($10, 85), Montana ($10.30), New Jersey ($15.13), New York ($16.00), Ohio ($10.45), Oregon ($15.45), South Dakota ($11.20), Vermont ( $13.67), Washington ($16.28).
The rates are based on the August-to-August change in the consumer price index, which was announced in mid-September.
Minnesota ($10.85) and Vermont ($13.67) cap annual increases at 2.5 percent and 5 percent, respectively.
In Michigan ($10.33), there will be no increase if the unemployment rate is 8.5 percent or more in the previous calendar year, according to the Michigan Department of Labor and Economic Opportunity.
In California, the minimum wage for the entire state has been increased to $16.00 as of January 1
California Governor Gavin Newsom signs the fast food bill into law surrounded by fast food workers at SEIU Local 721 in Los Angeles in September 2023. The minimum wage is now $16.00
Other states that increased their minimum wages effective January 1 include Nebraska ($12.00), Missouri ($12.30), Illinois ($14.00), Florida ($13.00 as of September 30), Maryland ($15.00 ) and Rhode Island ($14.00).
Rhode Island will also see a further increase in its minimum wages, with another increase scheduled for January 1, 2025, to $15 per hour.
And in Georgia and Wyoming, the state minimum wage is lower than the federal minimum wage at just $7.25 per hour. The average hourly wage in the US is currently $33.18.
Florida's updated minimum wage of $13.00 won't go into effect until September 30 next year, while Oregon's $14.20 minimum wage will be lifted starting July 1.
A handful of states have more complex minimum wages that are affected by the size of the employer. For example, in New Jersey, the minimum will be $15.13 for businesses with six or more employees, but $13.73 for businesses with fewer employees.
Similarly, in Minnesota, the minimum wage will be $10.85 if the employer has annual revenue of at least $500,000, but $8.85 if lower.