22 States Hike Minimum Wage in the New Year

Minimum-wage workers in 22 states will see a rise in their paychecks in this new year. The increases are expected to affect nearly 10 million workers, according to the Economic Policy Institute (EPI), which estimates that those increased wages will add up to an additional $6.95 billion in pay.

In addition to those 22 states, 38 cities and counties will also increase their minimum wages above state minimums on Jan. 1. According to the Department of Labor, 20 states will maintain the federal minimum wage of $7.25 an hour.

And according to EPI, of the 17.6 million workers earning less than $15 an hour, nearly half live in those 20 states that continue to stick to the federal minimum wage, which has not changed since 2009, despite a skyrocketing cost of living, reports National Public Radio. According to the Bureau of Labor Statistics consumer price index, a dollar in 2023 can buy roughly 70% of what it could buy in 2009.

According to EPI data, nearly 58% of workers who will benefit from the coming wage increase are women. Nine percent are Black and nearly 38% are Hispanic. Over a quarter of those who will benefit from the pay increases are parents, which could make a significant difference in their standards of living, given that nearly 20% of the benefitting minimum wage workers currently have incomes below the poverty line.

Most recently, Senate Democrats introduced the Raise the Wage Act of 2023 in July. If passed, it would gradually increase the federal minimum wage to $17 an hour by 2028, reports NPR.

Paycom reports these state minimum wage rates for 2024:

•Alaska: $11.73 (up from $10.85)

•Arizona: $14.35 ($13.85)

•California: $16.00 ($15.50)

•Colorado: $14.42 ($13.65)

•Connecticut: $15.69 ($15.00)

•Delaware: $13.25 ($11.75)

•Hawaii: $14.00 ($12.00)

•Illinois $14.00 ($13.00)

•Maine $14.15 ($13.80)

•Maryland: $15.00 ($13.25)

•Michigan: $10.33 ($10.10)

•Minnesota: $8.85 small employers; $10.85 large ($8.63; $10.59)

•Missouri: $12.30 ($12.00)

•Montana: $10.30 ($9.95)

•Nebraska: $12.00 ($10.50)

•New Jersey: $15.13; $13.75 seasonal/small emp. ($14.13; $12.93)

•New York $15.00 ($14.20), NYC, Westchester, Long Island (New York): $16.00 ($15.00)

•Ohio: $10.45 ($10.10)

•Rhode Island: $14.00 ($13.00)

•South Dakota: $11.20 ($10.80)

•Vermont: $13.67 ($13.18)

•Washington: $16.28 ($15.74)

These states will increase their minimum wage later in the year:

•Florida: $13.00, effective Sept. 30 ( up from $12.00)

•Nevada: $12.00; effective July 1

•Oregon: $1.25 over the standard minimum wage for employers in the Portland metro; $1 less than the standard minimum wage for non-urban counties, effective July 1 (up from $15.45 for employers in the Portland metro; $13.20 for non-urban counties; and $14.20 for all others)

•Washington DC: $17.00 until July 1 — new rate has not yet been determined.