Minimum wages increased in 21 states on Jan. 1, and more hikes are expected later in the year.
The federal minimum wage remains at $7.25 an hour, a rate last adjusted in July 2009. However, states have enacted their own minimum wages, either outright or linked to inflation.
The states that raised their minimum wage on Jan. 1 included: Alaska, Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, Virginia and Washington.
California last year enacted a “fast-food” wage of $20 an hour. California voters rejected an 18 an hour minimum wage in November.
Business for a Fair Minimum Wage, a lobbying group, noted that voters in Missouri and Alaska approved ballot measures last year and 15 states plus the District of Columbia have a minimum wage of $15 or higher now or are phasing in scheduled increases to $15 or higher: Alaska, California, Connecticut, Delaware, Florida, Hawaii, Illinois, Maryland, Massachusetts, Missouri, Nebraska, New Jersey, New York, Rhode Island, and Washington State.
Washington State had the highest state minimum wage at $16.66 an hour as of Jan. 1, the group noted.
Further state increases later in 2025 are expected in:
- Oregon and the District of Columbia, which will have cost of living increases on July 1.
- Alaska has a second 2025 increase on July 1.
- Florida’s minimum wage will increase to $14 on Sept. 30, and then to $15 in 2026. In 2027, Florida will resume annual indexing.
In addition, numerous city and county minimum wages will increase on Jan. 1 or later in 2025. The University of California Berkeley Labor Center provides an Inventory of U.S. city and county minimum wage ordinances.
Contact Ron Ruggless at [email protected]
Follow him on X/Twitter: @RonRuggless
