While 69 jurisdictions raised their minimum wage rates on Jan. 1, an additional 28 plan to raise their minimum wage floors before the end of the year.
Jan. 1 marked a salary increase for millions of employees in 21 states and 48 cities and counties. In 55 of those, the wage floor was raised to $15 or higher—more than double the $7.25 federal minimum—and even reaching or exceeding $17 per hour in 38 localities, depending on employment.
According to a
report by the worker advocacy group National Employment Law Project (NELP), an additional five states and 23 localities will be implementing minimum wage increases later this year.
“In total, a record 88 jurisdictions—23 states and 65 cities and counties—will raise their minimum wage floors by the end of 2025,” NELP said.
The study noted: "Three states (Alaska, California, and Michigan), and six local jurisdictions (West Hollywood, California; Saint Paul, Minnesota; and the Washington cities of Bellingham, Burien, Renton, and Tukwila) are expected to raise their minimum wages twice in 2025 but are counted once in the year’s grand total."
States
Michigan was the first state to boost its minimum wage rate again after the January bump, setting the minimum at $12.48 per hour up from $10.33, and tipped wages up to $5.99 from $3.93, effective March 1.Alaska, California and Oregon will see increases on July 1.
Alaska will raise the minimum wage from $11.73 to $13.
California will increase minimum wage for healthcare workers from $18-$23 to $18.63-$24, depending on the type of facility.
Oregon will see minimum wage increased to $15.05 overall, with the following variations: $16.30 for the Portland metro area and $14.05 for nonurban communities.
Lastly, Florida will increase minimum wage by one dollar to $14 and $10.98 for tipped employees, on Sept. 30.
However, the seven states of Arkansas, Hawaii, Maryland, Massachusetts, Nevada, New Mexico, and West Virginia are not expected to increase their minimum wage rates this year, NELP said.
Localities and Major Cities
Minimum wage increases for cities and counties are primarily Consumer Price Index adjustments to compensate for inflation, typically around 50 cents. For most localities, this increase becomes effective on or before July 1.Here are the new rates for a few big cities.
Santa Fe, New Mexico: Minimum wage has already
increased to $15 per hour in March.
Los Angeles County, California: Minimum wage
increases to $17.87.
San Francisco, California: Minimum wage
increases to $19.18.
Washington, D.C.: Minimum wage
increases to $17.95.
St. Paul, Minnesota: A one-dollar step
increase to $15 and $13.25 for small and micro businesses, respectively.
Highest minimum rates—$20 and above—are all found in several localities in Washington State, namely Seattle, King County, Renton, SeaTac, Tukwila, and Burien, topping the list at $21.16 per hour for employees at large companies.
For a complete list of upcoming minimum wage increases, see the
NELP report on pages 12 through 15.
