The federal minimum wage in the US hasn’t budged from the hourly rate of $7.25 in over 14 years. But 22 states and 40 cities increased their own minimum wages to ring in the New Year.
As of Jan. 1, seven states (along with the District of Columbia) now have minimum wages of at least $15: Washington, Connecticut, Massachusetts, California, New York, New Jersey, and Maryland.
An additional six states have approved gradual increases to $15 an hour. Oregon, where the minimum wage is currently $14.20, adjusts its rate for inflation every year on July 1.
Voters are increasingly approving ballot measures to raise the minimum wage in their own states.
Thanks to a voter referendum in November 2020, Florida’s $12 minimum wage will increase to $13 on Sept. 30 and will rise by $1 on the same date each year until 2026, when it reaches $15 an hour. Hawaii’s minimum wage schedule is similar, reaching $16 an hour in 2026 and $18 an hour effective in 2028.
Later this year, voters in Ohio, Oklahoma, and Michigan may decide on $15 hourly wage proposals in their statewide elections.
Meanwhile, California enacted industry-specific hourly wages in 2023: Fast food workers now earn a minimum wage of $20 an hour starting in April, while healthcare workers will make at least $25 an hour by 2026.
At the same time, 20 states are still at the standard $7.25 minimum wage rate — including Pennsylvania.
"It is quite an embarrassment for Pennsylvania to be the only state — we're an island among all the other states who surround us who over the past several years, each and every year, have increased their minimum wages," said the state’s Senate Democratic leader, Jay Costa.
Some major cities also have their own minimum wages separate from federal and state levels. New York City — along with nearby Long Island and Westchester County — has a $16 minimum wage, while Oregon’s Portland metro area is $15.45.
And as of Jan. 1, dozens more cities and counties are seeing a rise in minimum wage, a majority of these cities located in California. Cupertino, the home base of Apple (AAPL), is raising its minimum wage by $0.55 to $17.75 an hour. San Diego’s new hourly minimum wage will be $16.85, while Sunnyvale’s will come in at $18.55.
Outside of California, Denver’s new minimum wage will be $18.29 an hour, while Minneapolis’s will now be $15.57, both due to inflation adjustments. Boulder County’s increase is the highest among all cities and counties, with a $2.04 pay bump to $15.69 an hour.
Finally, three cities in Washington — SeaTac, Seattle, and Tukwila — are all bumping their hourly pay as a result of inflation. Tukwila’s new minimum wage is the highest among the three at $20.29.
Adriana Belmonte is a reporter and editor covering politics and healthcare policy for Yahoo Finance. You can follow her on Twitter @adrianambells and reach her at [email protected].