Twenty-one states will enhance their minimal wages on January 1, elevating pay for greater than 9.2 million employees by a complete of $5.7 billion. As well as, 48 cities and counties will increase their minimal wages above their state wage flooring, largely in California, Colorado, and Washington.
Twenty-one states will enhance their minimal wages on January 1: 2025 minimal wage enhance, sort of enhance, variety of affected employees, and wage impacts by state
State | 2025 minimal wage | 2025 tipped minimal wage | Kind of change | Kind of change indicator | Measurement of enhance | Measurement of tipped minimal wage enhance | Variety of employees affected | Share of workforce affected | Complete enhance in wage invoice | Change in full-time employee common annual wages |
---|---|---|---|---|---|---|---|---|---|---|
Alabama | ||||||||||
Alaska | $11.91 | Inflation adjustment | 1 | $0.18 | 21,600 | 7.0% | $6,124,000 | $284 | ||
Arizona | $14.70 | $11.70 | Inflation adjustment | 1 | $0.35 | $0.35 | 480,200 | 15.0% | $214,011,000 | $446 |
Arkansas | ||||||||||
California | $16.50 | Inflation adjustment | 1 | $0.50 | 3,080,000 | 18.7% | $2,028,512,000 | $659 | ||
Colorado | $14.81 | $11.79 | Inflation adjustment | 1 | $0.39 | $0.39 | 260,800 | 9.7% | $112,100,000 | $430 |
Connecticut | $16.35 | $6.38 | Inflation adjustment | 1 | $0.66 | $0.00 | 242,800 | 15.3% | $168,209,000 | $729 |
Delaware | $15.00 | $2.23 | Laws | 2 | $1.75 | $0.00 | 81,400 | 18.9% | $99,044,000 | $1,291 |
Washington D.C. | ||||||||||
Florida | ||||||||||
Georgia | ||||||||||
Hawaii | ||||||||||
Idaho | ||||||||||
Illinois | $15.00 | $9.00 | Laws | 2 | $1.00 | $0.60 | 963,200 | 17.4% | $704,113,000 | $731 |
Indiana | ||||||||||
Iowa | ||||||||||
Kansas | ||||||||||
Kentucky | ||||||||||
Louisiana | ||||||||||
Maine | $14.65 | $7.33 | Inflation adjustment | 1 | $0.50 | $0.25 | 52,000 | 9.1% | $22,954,000 | $441 |
Maryland | ||||||||||
Massachusetts | ||||||||||
Michigan | $10.56 | $4.01 | Laws | 2 | $0.23 | $0.08 | 214,700 | 5.0% | $43,093,000 | $201 |
Minnesota | $11.13 | Inflation adjustment | 1 | $0.28 | 83,600 | 3.1% | $21,839,000 | $261 | ||
Mississippi | ||||||||||
Missouri | $13.75 | $6.88 | Poll measure | 3 | $1.45 | $0.73 | 440,100 | 16.2% | $365,558,000 | $831 |
Montana | $10.55 | Inflation adjustment | 1 | $0.25 | 29,300 | 6.3% | $7,010,000 | $239 | ||
Nebraska | $13.50 | $2.13 | Poll measure | 3 | $1.50 | $0.00 | 106,600 | 11.4% | $92,180,000 | $906 |
Nevada | ||||||||||
New Hampshire | ||||||||||
New Jersey | $15.49 | $5.62 | Laws | 2 | $0.36 | $0.36 | 610,200 | 15.8% | $335,808,000 | $550 |
New Mexico | ||||||||||
New York | $15.50 | $10.35 | Laws | 2 | $0.50 | $0.35 | 1,578,200 | 18.4% | $1,051,303,000 | $666 |
North Carolina | ||||||||||
North Dakota | ||||||||||
Ohio | $10.70 | $5.35 | Inflation adjustment | 1 | $0.25 | $0.10 | 313,300 | 6.1% | $71,749,000 | $229 |
Oklahoma | ||||||||||
Oregon | ||||||||||
Pennsylvania | ||||||||||
Rhode Island | $15.00 | $3.89 | Laws | 2 | $1.00 | $0.00 | 65,100 | 13.6% | $46,494,000 | $767 |
South Carolina | ||||||||||
South Dakota | $11.50 | $5.75 | Inflation adjustment | 1 | $0.30 | $0.15 | 29,300 | 6.9% | $8,057,000 | $275 |
Tennessee | ||||||||||
Texas | ||||||||||
Utah | ||||||||||
Vermont | $14.01 | $7.01 | Inflation adjustment | 1 | $0.34 | $0.17 | 29,100 | 9.9% | $8,770,000 | $302 |
Virginia | $12.41 | $2.13 | Inflation adjustment | 1 | $0.41 | $0.00 | 245,500 | 6.4% | $97,063,000 | $421 |
Washington | $16.66 | Inflation adjustment | 1 | $0.38 | 337,900 | 10.1% | $207,116,000 | $613 | ||
West Virginia | ||||||||||
Wisconsin | ||||||||||
Wyoming |
Notes: “Laws” signifies that the brand new fee was established by the legislature. “Poll measure” signifies the brand new fee was set by a poll initiative handed by voters. “Inflation adjustment” signifies that the brand new fee was established by a method, reflecting the change in costs over the previous yr. New York’s minimal wage worth solely displays minimal for upstate New York. See Desk 1 for New York Metropolis and Suffolk, Nassau, and Westchester minimal wage. Common annual wage will increase are for full-time employees.
Supply: EPI compilation of minimal wage knowledge from state company web sites and state laws. Estimated impacts produced by Financial Coverage Institute Minimal Wage Simulation Mannequin; see Technical Methodology by Dave Cooper, Zane Mokhiber, and Ben Zipperer.
The January 1 will increase present that the minimal wage continues to be a robust software for combating racial and gender wage disparities, supporting working households, and lowering poverty. In keeping with our evaluation of state minimal wage will increase:
- Ladies make up virtually three-fifths (58.2%) of employees getting a increase.
- Black and Hispanic employees will disproportionately profit. Black employees make up 9.1% of the wage-earning workforce within the states with will increase, however are 11.3% of affected employees. Equally, Hispanic employees are 19.5% of the workforce in these states, however 38.8% of the employees receiving wage will increase.
- Greater than 1 / 4 (25.7%) of affected employees are dad and mom. Greater than 5.3 million youngsters reside in households the place a person will obtain a minimal wage enhance.
- Nearly one in 5 (20.4%) affected employees are in households with incomes beneath the poverty line, and almost half (48.5%) have household incomes beneath twice the poverty line.
Additional, increased minimal wages assist working individuals with a variety of schooling ranges and at totally different factors of their lives and careers:
- Though teenage employees are disproportionately prone to be minimal wage employees, the overwhelming majority (88.0%) of affected employees are adults.
- Half (50.4%) of affected employees are full-time employees, and 86.5% of affected employees work no less than 20 hours per week.
- Greater than two-fifths (41.4%) of affected employees have accomplished no less than some schooling past a highschool diploma.
Most January will increase are the results of state legal guidelines that index the minimal wage to inflation. 13 states are rising their minimal wages by means of computerized annual inflation changes, containing greater than half (56.2%) of the employees affected by this yr’s will increase. The common full-time affected employee in these states will make round $400 extra yearly (see Desk 1).
These further earnings are vital for guaranteeing employees don’t lose floor resulting from rising costs, however the minimal wage stage should be too low, particularly if the minimal wage was listed years in the past and never revisited since. For example, Ohio’s minimal wage will enhance from $10.45 to $10.70 resulting from an inflation adjustment, however the final time the state made a big actual enhance to its minimal wage coverage was 2007. In keeping with EPI’s Household Price range Calculator, there isn’t a county the place an Ohio employee can earn lower than $17.73 an hour and keep a modest, however sufficient, way of life. State policymakers ought to commonly scrutinize their state’s minimal wage to verify it gives financial safety.
Staff in states implementing minimal wage will increase by means of poll measures and laws will obtain bigger pay will increase. On common, full-time affected employees in poll measure and laws states will earn $868 and $701 extra per yr, respectively. The biggest state enhance taking impact in January shall be in Delaware, the place laws will carry the minimal wage by $1.75 to $15.00 per hour. In consequence, the common full-time employee affected by the rise will earn $1,200 extra yearly.
Greater than half of affected employees are getting a increase by means of annual inflation changes: Impacts of January 2025 minimal wage will increase by sort of enhance
Kind of enhance | Variety of states | Complete employees affected immediately or not directly | Common share of employees affected | Complete change in annual wage invoice | Common change in annual earnings |
---|---|---|---|---|---|
Inflation adjustment | 13 | 5,205,300 | 9.5% | $2,973,514,000 | $410 |
Poll measure | 2 | 546,700 | 13.8% | $457,738,000 | $868 |
Laws | 6 | 3,512,800 | 14.8% | $2,279,855,000 | $701 |
Be aware: Common enhance in annual earnings is for full-time employees.
Supply: Financial Coverage Institute Minimal Wage Simulation Mannequin; see Technical Methodology by Dave Cooper, Zane Mokhiber, and Ben Zipperer.
As proven in Desk 2, minimal wages in Delaware, Illinois, and Rhode Island will attain $15.00 an hour, which means that 10 states and Washington D.C. can have minimal wages at or above $15.00. These 11 jurisdictions include a 3rd (33%) of all U.S employees. Additional, after profitable minimal wage poll measures in Alaska and Missouri, almost half of U.S employees will reside in states with no less than a $15 minimal wage by 2027.
States can go a lot additional in setting robust wage requirements for tipped employees. The tipped subminimum wage is an everlasting exception to the common minimal wage in each federal and lots of state legal guidelines. The tipped minimal wage is rooted within the nation’s historical past of slavery and continues to show many tipped employees to larger ranges of poverty and financial exploitation. Whereas 5 states (AK, CA, MN, MT, WA) with January will increase wouldn’t have a tipped employee carve-out, one other 5 states (CT, DE, NE, RI, VA) will not be rising their tipped minimal wages in any respect. In 9 states with January will increase, the tipped minimal wage is lower than half the worth of the common minimal wage.
Localities paved the way on robust wage flooring
The January will increase additionally present that cities and counties, notably in California, Colorado, and Washington, proceed to be leaders in setting formidable minimal wage insurance policies. As proven in Desk 4, 29 cities and counties in California will enhance their minimal wages in January, with each locality that’s elevating their wage reaching no less than $17 an hour besides in Oakland. In Colorado, 4 localities are rising their minimal wages, together with Denver the place the minimal wage shall be $18.81 an hour in 2025. Notably, unincorporated Boulder County is scheduled to succeed in $25 an hour by 2030. In Washington state, seven localities are elevating their minimal wages. Tukwila, WA, can have the very best minimal wage within the nation in 2025 at $21.10 an hour.
Whereas the federal minimal wage continues to stagnate, state and native lawmakers have acknowledged the necessity to carry wages for tens of millions of employees. In lots of locations, extra formidable minimal wages are getting used to form a extra equitable economic system the place employees usually tend to earn a dignified residing wage. This previous yr, California applied its first sectoral wage normal, with the state’s new fast-food council—composed of representatives from labor, enterprise, and the state authorities—establishing a $20 minimal wage for fast-food employees. The brand new coverage has resulted in increased pay for employees with no measurable lower in employment, including to the consensus of the highest high quality financial minimal wage analysis.
These will increase will present extra financial safety for tens of millions of employees in 2025, however there are nonetheless tens of tens of millions of employees in states with unchanging minimal wages which are being paid exceptionally low wages. Even in states the place will increase are happening, there may be nonetheless a have to intentionally safe residing wages for low-wage employees and remove dangerous carve-outs just like the tipped minimal wage.
2024 and 2025 minimal wages, dimension of enhance, and kind of enhance by state
State | 2024 minimal wage | 2024 tipped minimal wage | 2025 minimal wage | 2025 tipped minimal wage | Minimal wage enhance | Tipped minimal wage enhance | Kind of enhance |
---|---|---|---|---|---|---|---|
January 1, 2025 will increase | |||||||
Alaska | $11.73 | – | $11.91 | – | $0.18 | – | Inflation adjustment |
Arizona | $14.35 | $11.35 | $14.70 | $11.70 | $0.35 | $0.35 | Inflation adjustment |
California | $16.00 | – | $16.50 | – | $0.50 | – | Inflation adjustment |
Colorado | $14.42 | $11.40 | $14.81 | $11.79 | $0.39 | $0.39 | Inflation adjustment |
Connecticut | $15.69 | $6.38 | $16.35 | $6.38 | $0.66 | $0.00 | Inflation adjustment |
Delaware | $13.25 | $2.23 | $15.00 | $2.23 | $1.75 | $0.00 | Laws |
Illinois | $14.00 | $8.40 | $15.00 | $9.00 | $1.00 | $0.60 | Laws |
Maine | $14.15 | $7.08 | $14.65 | $7.33 | $0.50 | $0.25 | Inflation adjustment |
Michigan | $10.33 | $3.93 | $10.56 | $4.01 | $0.23 | $0.08 | Laws |
Minnesota | $10.85 | – | $11.13 | – | $0.28 | – | Inflation adjustment |
Missouri | $12.30 | $6.15 | $13.75 | $6.88 | $1.45 | $0.73 | Poll measure |
Montana | $10.30 | – | $10.55 | – | $0.25 | – | Inflation adjustment |
Nebraska | $12.00 | $2.13 | $13.50 | $2.13 | $1.50 | $0.00 | Poll measure |
New Jersey | $15.13 | $5.26 | $15.49 | $5.62 | $0.36 | $0.36 | Laws |
New York (the rest of state) | $15.00 | $10.00 | $15.50 | $10.35 | $0.50 | $0.35 | Laws |
New York (NYC, Lengthy Island, and Westchester) | $16.00 | $10.65 | $16.50 | $11.00 | $0.50 | $0.35 | |
Ohio | $10.45 | $5.25 | $10.70 | $5.35 | $0.25 | $0.10 | Inflation adjustment |
Rhode Island | $14.00 | $3.89 | $15.00 | $3.89 | $1.00 | $0.00 | Laws |
South Dakota | $11.20 | $5.60 | $11.50 | $5.75 | $0.30 | $0.15 | Inflation adjustment |
Vermont | $13.67 | $6.84 | $14.01 | $7.01 | $0.34 | $0.17 | Inflation adjustment |
Virginia | $12.00 | $2.13 | $12.41 | $2.13 | $0.41 | $0.00 | Inflation adjustment |
Washington | $16.28 | – | $16.66 | – | $0.38 | – | Inflation adjustment |
Notes: “Laws” signifies that the brand new fee was established by the legislature. “Poll measure” signifies the brand new fee was set by a poll initiative handed by voters. “Inflation adjustment” signifies that the brand new fee was established by a method, reflecting the change in costs over the previous yr. New York has separate minimal wages by area of the state.
Supply: EPI compilation of minimal wage knowledge from state company web sites and state laws.
Quantity and share of employees affected, quantity and share of kids affected, annual, hourly and complete wage impacts from minimal wage will increase by state
State | Complete employees affected immediately or not directly | Share of workforce affected | Complete change in annual wage invoice | Common change in annual wages | Common change in hourly wages | Estimated variety of youngsters in affected households | Share of kids affected by enhance |
---|---|---|---|---|---|---|---|
January 1, 2025 will increase | |||||||
Alaska | 21,600 | 7.0% | $6,124,000 | $284 | $0.17 | 18,900 | 10.3% |
Arizona | 480,200 | 15.0% | $214,011,000 | $446 | $0.27 | 313,200 | 19.2% |
California | 3,080,000 | 18.7% | $2,028,512,000 | $659 | $0.38 | 2,158,900 | 25.1% |
Colorado | 260,800 | 9.7% | $112,100,000 | $430 | $0.28 | 140,500 | 12.9% |
Connecticut | 242,800 | 15.3% | $168,209,000 | $729 | $0.47 | 137,000 | 18.4% |
Delaware | 81,400 | 18.9% | $99,044,000 | $1,291 | $0.83 | 45,600 | 22.4% |
Illinois | 963,200 | 17.4% | $704,113,000 | $731 | $0.47 | 558,200 | 23.7% |
Maine | 52,000 | 9.1% | $22,954,000 | $441 | $0.30 | 27,200 | 10.8% |
Michigan | 214,700 | 5.0% | $43,093,000 | $201 | $0.15 | 130,800 | 7.3% |
Minnesota | 83,600 | 3.1% | $21,839,000 | $261 | $0.22 | 71,700 | 5.5% |
Missouri | 440,100 | 16.2% | $365,558,000 | $831 | $0.55 | 274,700 | 19.9% |
Montana | 29,300 | 6.3% | $7,010,000 | $239 | $0.18 | 20,200 | 8.8% |
Nebraska | 106,600 | 11.4% | $92,180,000 | $906 | $0.69 | 80,700 | 17.0% |
New Jersey | 610,200 | 15.8% | $335,808,000 | $550 | $0.33 | 369,400 | 18.8% |
New York | 1,578,200 | 18.4% | $1,051,303,000 | $666 | $0.39 | 311,300 | 20.3% |
Ohio | 313,300 | 6.1% | $71,749,000 | $229 | $0.18 | 227,400 | 9.9% |
Rhode Island | 65,100 | 13.6% | $46,494,000 | $767 | $0.53 | 33,300 | 16.1% |
South Dakota | 29,300 | 6.9% | $8,057,000 | $275 | $0.20 | 18,600 | 8.7% |
Vermont | 29,100 | 9.9% | $8,770,000 | $302 | $0.22 | 13,800 | 11.8% |
Virginia | 245,500 | 6.4% | $97,063,000 | $421 | $0.28 | 162,100 | 9.1% |
Washington | 337,900 | 10.1% | $207,116,000 | $613 | $0.36 | 223,800 | 13.6% |
Complete | 9,264,800 | 13.7% | $5,711,108,000 | $620 | $0.38 | 5,337,300 | 17.8% |
Be aware: Common enhance in annual earnings is for full-time employees.
Supply: Financial Coverage Institute Minimal Wage Simulation Mannequin; see Technical Methodology by Dave Cooper, Zane Mokhiber, and Ben Zipperer.
Minimal wage will increase, tipped minimal wage will increase, and kind of enhance by locality
Locality | State | 2024 minimal wage | 2024 tipped minimal wage | 2025 minimal wage | 2025 tipped minimal wage | Minimal wage enhance | Tipped minimal wage enhance | Kind of enhance |
---|---|---|---|---|---|---|---|---|
January 1, 2025 will increase | ||||||||
Flagstaff | Arizona | $17.40 | $17.85 | $0.45 | $15.90 | $16.85 | $0.95 | Inflation adjustment |
Tucson | Arizona | $14.35 | $15.00 | $0.65 | $11.35 | $12.00 | $0.65 | Poll measure |
Belmont | California | $17.35 | $18.30 | $0.95 | – | – | – | Inflation adjustment |
Burlingame | California | $17.03 | $17.43 | $0.40 | – | – | – | Inflation adjustment |
Cupertino | California | $17.75 | $18.20 | $0.45 | – | – | – | Inflation adjustment |
Daly Metropolis | California | $16.62 | $17.07 | $0.45 | – | – | – | Inflation adjustment |
East Palo Alto | California | $17.10 | $17.45 | $0.35 | – | – | – | Inflation adjustment |
El Cerrito | California | $17.92 | $18.34 | $0.42 | – | – | – | Inflation adjustment |
Foster Metropolis | California | $17.00 | $17.39 | $0.39 | – | – | – | Inflation adjustment |
Half Moon Bay | California | $17.01 | $17.47 | $0.46 | – | – | – | Inflation adjustment |
Hayward | California | $16.90 | $17.36 | $0.46 | – | – | – | Inflation adjustment |
Los Altos | California | $17.75 | $18.20 | $0.45 | – | – | – | Inflation adjustment |
Menlo Park | California | $16.70 | $17.10 | $0.40 | – | – | – | Inflation adjustment |
Mountain View | California | $18.75 | $19.20 | $0.45 | – | – | – | Inflation adjustment |
Novato | California | $16.86 | $17.27 | $0.41 | – | – | – | Inflation adjustment |
Oakland | California | $16.50 | $16.89 | $0.39 | – | – | – | Inflation adjustment |
Palo Alto | California | $17.80 | $18.20 | $0.40 | – | – | – | Inflation adjustment |
Petaluma | California | $17.45 | $17.97 | $0.52 | – | – | – | Inflation adjustment |
Redwood Metropolis | California | $17.70 | $18.20 | $0.50 | – | – | – | Inflation adjustment |
Richmond | California | $17.20 | $17.77 | $0.57 | – | – | – | Inflation adjustment |
San Carlos | California | $16.87 | $17.32 | $0.45 | – | – | – | Inflation adjustment |
San Diego | California | $16.85 | $17.25 | $0.40 | – | – | – | Inflation adjustment |
San Jose | California | $17.55 | $17.95 | $0.40 | – | – | – | Inflation adjustment |
San Mateo metropolis | California | $17.35 | $17.95 | $0.60 | – | – | – | Inflation adjustment |
San Mateo county | California | $17.06 | $17.46 | $0.40 | – | – | – | Inflation adjustment |
Santa Clara | California | $17.75 | $18.20 | $0.45 | – | – | – | Inflation adjustment |
Santa Rosa | California | $17.45 | $17.87 | $0.42 | – | – | – | Inflation adjustment |
Sonoma | California | $17.60 | $18.02 | $0.42 | – | – | – | Inflation adjustment |
South San Francisco | California | $17.25 | $17.70 | $0.45 | – | – | – | Inflation adjustment |
Sunnyvale | California | $18.55 | $19.00 | $0.45 | – | – | – | Inflation adjustment |
West Hollywood | California | $19.08 | $19.65 | $0.57 | – | – | – | Inflation adjustment |
Boulder metropolis | Colorado | $14.42 | $15.57 | $1.15 | $11.40 | $12.55 | $1.15 | Metropolis ordinance |
Boulder County | Colorado | $15.69 | $16.57 | $0.88 | $12.67 | $13.55 | $0.88 | County ordinance |
Denver | Colorado | $18.29 | $18.81 | $0.52 | $15.27 | $15.79 | $0.52 | Inflation adjustment |
Edgewater | Colorado | $15.02 | $16.52 | $1.50 | $12.00 | $13.50 | $1.50 | Metropolis ordinance |
Portland | Maine | $15.00 | $15.50 | $0.50 | $7.50 | $7.75 | $0.25 | Inflation adjustment |
Rockland | Maine | $15.00 | $15.50 | $0.50 | $7.50 | $7.75 | $0.25 | Inflation adjustment |
Howard County | Maryland | $15.00 | $16.00 | $1.00 | $3.63 | $3.63 | $0.00 | County ordinance |
Minneapolis | Minnesota | $15.57 | $15.97 | $0.40 | $15.57 | $15.97 | $0.40 | Inflation adjustment |
St. Paul | Minnesota | $15.57 | $15.97 | $0.40 | $15.57 | $15.97 | $0.40 | Inflation adjustment |
Las Cruces | New Mexico | $12.36 | $12.65 | $0.29 | $4.95 | $5.06 | $0.11 | Inflation adjustment |
Bellingham | Washington | $17.28 | $17.66 | $0.38 | – | – | – | Inflation adjustment |
Burien | Washington | $16.28 | $19.66 | $3.38 | – | – | – | Inflation adjustment |
King County | Washington | $16.28 | $20.29 | $4.01 | – | – | – | County ordinance |
Renton | Washington | $20.29 | $20.90 | $0.61 | – | – | – | Inflation adjustment |
SeaTac | Washington | $19.71 | $20.17 | $0.46 | – | – | – | Inflation adjustment |
Seattle | Washington | $19.97 | $20.76 | $0.79 | – | – | – | Inflation adjustment |
Tukwila | Washington | $20.29 | $21.10 | $0.81 | – | – | – | Inflation adjustment |
Notes: “Poll measure” signifies the brand new fee was set by a poll initiative handed by voters. “Metropolis ordinance” signifies that the brand new fee was set by the town council. “Inflation adjustment” signifies that the brand new fee was established by a method, reflecting the change in costs over the previous yr.
Supply: EPI compilation of minimal wage knowledge from state company web sites and state laws.
Notes
Prices for a one grownup, no youngsters family. Worth assumes that every one revenue comes from wages. One other strategy is to imagine that 81% of revenue is coming from wages, by which case the bottom county residing wage in Ohio could be $14.36 an hour.
EPI evaluation of Present Inhabitants Survey microdata.
Virginia might additionally enhance its minimal wage to $15 an hour by 2026 however requires reauthorization by the state legislature and governor. If Virginia does comply with by means of with its scheduled enhance, greater than half of U.S. employees will reside in a state at or above $15 an hour in 2027.
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