Money Research Collective’s editorial team solely created this content. Opinions are their own, but compensation and in-depth research determine where and how companies may appear. Many featured companies advertise with us. How we make money.
These 22 States Are Hiking Their Minimum Wage on New Year’s Day
By Brenden Rearick MONEY RESEARCH COLLECTIVE
Minimum wage workers across the U.S. are kicking off 2024 with better paychecks.
Nearly half of the U.S. is ringing in the new year with higher pay for minimum wage workers.
On Jan. 1, 22 states will bump up their minimum wage, according to a report from the Washington, D.C. think tank Economic Policy Institute (EPI). The increases come by way of ballot measure, legislation and inflation adjustment measures, and are expected to add anywhere from $216 to $1,380 to the annual earnings of almost 10 million workers.
The impact of these adjustments will vary, but the changes could provide crucial support to many struggling Americans. About 1 in 5 of all workers receiving wage increases currently live below the poverty line, EPI says.
Women make up about 58% of the workforce receiving raises, EPI notes, and Black and Hispanic workers make up about 49%.
The wage increases come at a time of record low unemployment, and will kick off the “strongest wage growth for low-wage workers in decades,” according to the think tank.
Still, the EPI says, the historical growth of U.S. workers’ hourly pay over the last several decades falls flat compared to the rapid growth of worker productivity.
The federal minimum wage of $7.25 hasn’t changed since 2009, and seven states still cap their minimum wage at that rate. Previous research shows that if wages kept pace with production, the minimum wage would be $19 today.
Thirty eight cities and counties across the U.S. are also raising wages, mostly through inflation adjustments. Among these, the largest pay increase comes from Boulder County, Colorado, which is adding $2.04 to its minimum pay. Other cities, including Seattle, Denver and Portland, Maine are seeing increases between 20 cents and $1.37.
In September, Florida will increase its minimum wage as well, bringing it from $11 to $12.
States where minimum wage workers are getting a raise
Here are the 22 states where minimum wage workers are getting a raise in 2024:
- Alaska: $10.85 to $11.73
- Arizona: $13.85 to $14.35
- California: $15.50 to $16
- Colorado: $13.65 to $14.42
- Connecticut: $15 to $15.69
- Delaware: $11.75 to $13.25
- Hawaii: $12 to $14
- Illinois: $13 to $14
- Maine: $13.80 to $14.15
- Maryland: $13.25 to $15
- Michigan: $10.10 to $10.33
- Minnesota: $10.59 to $10.85
- Missouri: $12 to $12.30
- Montana: $9.95 to $10.30
- Nebraska: $10.50 to $12
- New Jersey: $14.13 to $15.13
- New York: $14.20 to $15 ($15 to $16 in New York City)
- Ohio: $10.10 to $10.45
- Rhode Island: $13 to $14
- South Dakota: $10.80 to $11.20
- Vermont: $13.18 to $13.67
- Washington: $15.74 to $16.28
More from Money:
When Are Taxes Due in 2024? Here Are the Deadlines You Need to Know
What Retirement? More Americans 65 and Older Are Working Full Time
Here’s When the Fed Will Cut Interest Rates, According to Experts
Brenden Rearick is a reporter at Money, covering news stories on credit cards, real estate, investing, mortgages and general finance. His work includes writing the most up-to-date breaking news coming out of the world of personal finance, and digging into enterprise stories about finance phenomena like the increasing normalization of debt and affordable housing. Brenden graduated from the University of Pittsburgh with a degree in professional writing and political science in 2020. While there, he contributed to the Pitt News and Pitt Magazine. He also worked as a contributor for Sampsonia Way, the in-house magazine for local non-profit City of Asylum. Shortly after graduating and until he joined Money in the spring of 2023, Brenden worked as a Financial News Reporter at InvestorPlace, covering investing, cryptocurrency and SPACs. Outside of finance journalism, Brenden has over five years of experience freelance reporting and interning for a range of newspapers and websites on topics ranging from politics to local news to sports. His work has appeared in the Pittsburgh Post-Gazette, the Miami Herald, the Charlotte Observer, the Week and NASDAQ.com. He is based in Pittsburgh, Pennsylvania.