Nearly 10 million workers in 22 states will receive raises on January 1. See where wages are increasing.


New Jersey minimum wage will increase in the new year

New Jersey minimum wage will increase in the new year 00:33

Higher minimum wages will go into effect Jan. 1 in 22 states, giving an economic boost to nearly 10 million workers, according to a recent estimate.

Higher base wages will generate nearly $7 billion in additional annual wages for about 9.9 million workers, the left-leaning Economic Policy Institute said in a Dec. 21 research publication. The raises will raise base pay to at least $16 an hour in three states: California, New York and Washington.

In addition to the state wage increases, 38 other cities and counties will also increase their minimum wages, the group said.

Higher minimum wages come at a time when workers are struggling with higher costs due to inflation, which is declining after hitting a 40-year high in 2022. Twelve of the states raising their wages tie their base pay to inflation, resulting in an annual adjustment that prevents workers from losing purchasing power when prices rise.

Still, the federal minimum wage has not changed since 2009, remaining at $7.25 an hour, even though inflation has risen more than 40% since then.

“Despite the continued progress of many states across the country to increase their minimum wages, there are still 17.6 million workers earning less than $15 per hour,” EPI research assistant Sebastián Martínez Hickey wrote in a Blog. mail. “Nearly half of workers (47.8%) earning less than $15 an hour are in one of the 20 states still using the federal minimum wage of $7.25 an hour.”

Three additional states will increase their minimum wages later in 2024: Florida, Nevada and Oregon. The new benchmark wage rates in Nevada and Oregon will go into effect on July 1, while Florida's minimum wage will increase on September 30.

Who will receive a salary increase?

The pay increases will disproportionately increase the wages of women and people of color, EPI estimated.

About 6 in 10 of the workers who will benefit from the mandatory higher wage are women. While Hispanic workers make up about 20% of workers in states that are raising base wages, they represent nearly 40% of those who will be affected by minimum wage increases, the group said. Likewise, about 11% of affected workers are black, although they represent about 9% of the workforce in these 22 states.

“Minimum wage increases are also vital for many workers who are most vulnerable to exploitation, whether due to their immigration status, disability, or workplace,” Martínez Hickey wrote.

federal minimum wage

Although many employers have already increased their starting wages to stay competitive amid a tight labor market, higher base wages remain important because they ensure wage gains for workers, EPI noted.

“While the federal minimum wage falls further behind the cost of living, at just $7.25 an hour, state increases are vital for workers, businesses and communities,” said Holly Sklar, CEO of Business for a Fair Minimum Wage, in a statement.

With state wage increases on January 1, workers in six states (California, Connecticut, Maryland, New Jersey, New York and Washington) will be guaranteed a base wage that is more than double the federal minimum wage.

The 20 states where the base wage will remain at $7.25 an hour are primarily in the South and Midwest, from Alabama to Wisconsin.

States will increase the minimum wage in 2024

These are the states that will increase their minimum wage on January 1, 2024, along with the new base wage that will take effect.

  • Alaska: $11.73
  • Arizona: $14.35
  • California: $16
  • Colorado: $14.42
  • Connecticut: $15.69
  • Delaware: $13.25
  • Hawaii: $14
  • Illinois: $14
  • Maine: $14.15
  • Maryland: $15
  • Michigan: $10.33
  • Minnesota: $10.85
  • Missouri: $12.30
  • Mountain: $10.30
  • Nevada: $12
  • New Jersey: $15.13
  • New York: $16
  • Ohio: $10.45
  • Rhode Island: $14
  • South Dakota: $11.20
  • Vermont: $13.67
  • Washington: $16.28

Nevada and Oregon's new minimum wages, which go into effect July 1, will be set at $12 an hour and $14.20 plus an adjustment for inflation, respectively. Florida will increase its minimum wage to $13 an hour on September 30.

Cities and counties increase their minimum wages

Some cities and counties next year will also raise their minimum wages, raising their lowest wage levels above the state base level.

Denver, for example, will increase the city's minimum wage to $18.29 an hour on Jan. 1, beating Colorado's rate of $14.42 an hour.

Below are the 38 cities and counties where workers will get a minimum wage increase on Jan. 1, along with the new 2024 state minimum, according to EPI.

  • Flagpole, Arizona: $17.20
  • Belmont, California: $17.35
  • Burlingame, California: $17.03
  • Cupertino, California: $17.75
  • Daly City, California: $16.62
  • East Palo Alto, California: $17.10
  • El Cerrito, California: $17.92
  • Foster City, California: $17
  • Half Moon Bay, California: $17.01
  • Hayward, California: $16.90
  • Los Altos, California: $17.75
  • Menlo Park, California: $16.70
  • Mountain View, California: $18.75
  • Novato, California: $16.86
  • Oakland, California: $16.50
  • Palo Alto, California: $17.80
  • Petaluma, California: $17.45
  • Redwood City, California: $17.70
  • Richmond, California: $17.20
  • San Carlos, California: $16.87
  • San Diego, California: $16.85
  • San Jose, California: $17.55
  • San Mateo, California: $17.06
  • Santa Clara, California: $17.75
  • Santa Rosa, California: $17.45
  • Sonoma, California: $17.60
  • South San Francisco, California: $17.25
  • Sunnyvale, California: $18.55
  • Boulder County, Colorado: $15.69
  • Denver, Colorado: $18.29
  • Edgewater, Colorado: $15.02
  • Portland, Maine: $15
  • Minneapolis, Minnesota: $15.57
  • St. Paul, Minnesota: $15.57
  • Las Cruces, New Mexico: $12.36
  • SeaTac, Washington: $19.71
  • Seattle, Washington: $19.97
  • Tukwila, Washington: $20.29

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *