The federal minimum wage has remained unchanged at a paltry $7.25 an hour since it was last raised in 2009, but states and local governments are taking steps to raise wages in the face of rising costs.
A record 88 jurisdictions will raise their minimum wage by the end of next year, according to a report by the nonprofit advocacy group National Employment Law Project (NELP). The 88 jurisdictions include 23 states and 65 cities and counties. Of these, 70 jurisdictions have enacted wage floors of $15 per hour or more for some or all employees, and 53 jurisdictions have wage floors of $17 per hour or more for some or all employees. is enacted. All or some workers.
States enacting increases include Alaska, Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, and Virginia. , Washington, according to NELP.
“Next year, Illinois workers will get another raise,” Illinois Governor JB Pritzker proudly announced in X. The minimum wage for Illinois workers is scheduled to rise by $1 in 2025, from $14 to $15 an hour.
“In the face of lack of progress at the federal level, workers and their advocates continue to take action at the polls, statehouses and city halls.Thanks to years of worker-led campaigns, these victories are a result of worker-led campaigns. “The rising cost of living will help Black and brown workers, who are disproportionately affected by lower wages and economic instability,” said NELP President and CEO. Rebecca Dixon said in a statement.
“Now is the time for Congress to act on behalf of workers at the federal level,” she added.
Arkansas, Hawaii, Maryland, Massachusetts, Nevada, New Mexico, and West Virginia all have minimum wage laws that exceed the federal tax rate of $7.25, but plan to raise their minimum wages in 2025. There isn’t. Currently, 20 states have minimum wages. $7.25 per hour. Because a state’s minimum wage is less than $7.25 or there is no state-mandated minimum wage, the federal dollar amount applies, according to the Economic Policy Institute.
NELP’s report particularly highlights the consequential wage increase victory. For example, voters in the Republican-controlled state of Alaska approved a ballot initiative to raise the minimum wage to $15 by 2027 and also enacted a paid sick leave policy, according to NELP.
According to the report, “Alaska is currently one of seven states that does not allow employers to subsidize payroll costs through the use of tip credits, making this victory particularly important for tipped workers. It has become a serious matter.”
In Arizona, voters rejected Proposition 138 by a wide margin. According to NELP, the ballot measure, which has the support of the restaurant industry, “expands the ‘tip credit’ from a flat amount of $3.00 less than the full minimum wage to 25% less than the full minimum wage to support tipped workers. “It was a reduction in the wages of employees.”
