Minimum Wage Increases in 25 States for 2024

Millions of Americans will be getting a pay raise this new year.

January 2, 2024

According to CBS News, workers in 25 U.S. states plus Washington, D.C., will see a hike in minimum wages in 2024.

In 22 of those states, the raise went into effect on January 1. Increases in Nevada and some parts of Oregon will go into effect on July 1, while Florida will see the rise on September 30.

California, New York, and Washington will pay at least US$16 an hour in minimum wages, and Washington, D.C., will pay $17 an hour. Workers in 20 of the states that aren’t seeing an increase will remain at the federal minimum wage of $7.25 an hour, which has been the federal rate since 2009.

CBS News commented that minimum wage increases could benefit lower-wage workers who might be struggling due to the inflated costs of basics such as groceries and rent, which remain higher than before the COVID-19 pandemic.

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

Businesses, however, might find the new minimum wages challenging, according to an article by Inc., as they could lead to even higher costs for consumers or possibly a reduced workforce.

In response to the increase in wages,“we may see some places increase prices,” Yelena Maleyev, an economist at KPMG, told Inc., “while others might choose to invest in labor-saving technologies—like AI or robotics—to do more with fewer workers.”

Here are the states that are seeing a minimum wage increase in 2024:

  • Alaska: $11.73
  • Arizona: $14.35
  • California: $16
  • Colorado: $14.42
  • Connecticut: $15.69
  • Delaware: $13.25
  • Florida: $13
  • Hawaii: $14
  • Illinois: $14
  • Maine: $14.15
  • Maryland: $15
  • Michigan: $10.33
  • Minnesota: $10.85 for big businesses and $8.85 for small businesses  
  • Missouri: $12.30
  • Montana: $10.30
  • Nebraska: $12
  • Nevada: $12
  • New Jersey: $15.13
  • New York: $16
  • Ohio: $10.45
  • Oregon: $14.20 plus an adjustment for inflation, to be determined
  • Rhode Island: $14
  • South Dakota: $11.20
  • Vermont: $13.67
  • Washington: $16.28 
  • Washington, D.C.: $17

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