While the federal minimum wage hasn't budged from a paltry $7.25 an hour since the last time it was raised in 2009, states and local governments are taking action to boost wages in the face of rising costs.
A record 88 jurisdictions will raise their minimum wage floors by the end of the coming year, according to a report from the National Employment Law Project (NELP), a nonprofit advocacy organization. The 88 jurisdictions include 23 states and 65 cities and counties—of those, 70 jurisdictions are enacting wages that will reach or exceed $15 an hour for some or all employees, and 53 jurisdictions will enact a wage floor that reaches or exceeds $17 an hour for all or some workers.
The states enacting increases include 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, per NELP.
"Next year, Illinois's workers are getting another raise," Illinois Governor JB Pritzker announced proudly on X. Workers will be getting a minimum wage increase of $1 per hour in Illinois in 2025, from $14 to $15.
"In the absence of progress at the federal level, workers and advocates are continuing to take action at the ballot box, statehouses, and in their city councils. Thanks to years-long worker-led campaigns, these victories will help workers keep up with the rising cost of living, especially Black and brown workers who are disproportionately affected by low wages and economic insecurity," said Rebecca Dixon, president and CEO of the NELP in a statement.
"Now it's time for Congress to deliver for workers on the federal level," she added.
Arkansas, Hawaii, Maryland, Massachusetts, Nevada, New Mexico, and West Virginia, which all have minimum wage laws above the federal rate of $7.25, are not slated to raise their minimum wages in 2025. Currently there 20 states with a minimum wage of $7.25 an hour, either because the state's minimum wage is $7.25 or below, or there is no state-mandated minimum wage, so the federal dollar amount applies, according to the Economic Policy Institute.
The NELP report highlights particularly consequential wage increase victories. For example, voters in the GOP-controlled state of Alaska approved a ballot initiative that raised the minimum wage to $15 by 2027 and also enacted a paid sick leave policy, according to NELP.
"Alaska is one of seven states that do not currently allow employers to subsidize their payroll costs through the use of tip credits, making this victory especially consequential for tipped workers," according to the report.
In Arizona, voters defeated Proposition 138 by a wide margin. The ballot measure was restaurant industry-backed and "would have cut wages for tipped workers by expanding the 'tip credit' from a fixed $3.00 less than the full minimum wage to 25% less than the full minimum wage," according to NELP.
