Over 9.2 million employees will get a increase on January 1 from 21 states elevating their minimal wages


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

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.

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%

 

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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