Starting next week, minimum wage workers in 22 states are set to get a raise, with higher wages kicking in on January 1. This change is expected to benefit nearly 10 million workers financially.
Minimum Wage Workers Getting Raise Next Week in 22 States, Cities
The upcoming rise in minimum wage across 22 states is set to boost incomes by nearly $7 billion.
To offer a clearer picture, the Economic Policy Institute has provided a map detailing the specific wage increases for each state.
The states for these wage hikes include Maine, Vermont, Washington, Montana, Minnesota, Illinois, Michigan, New York, Rhode Island, South Dakota, Ohio, New Jersey, Connecticut, California, Colorado, Nebraska, Maryland, Delaware, Arizona, Alaska, and Hawaii.
Additionally, certain cities are taking independent action to increase their minimum wage. For instance, Boulder is moving towards a minimum wage of over $18 an hour, significantly higher than Colorado's statewide rate of approximately $14.
The upcoming minimum wage increases are set to benefit women and people of color significantly, according to the Economic Policy Institute (EPI).
Research shows that 60% of women will gain from these wage rises. Hispanic workers, who form 20% of the workforce in states enacting these changes, will make up nearly 40% of the beneficiaries. Similarly, Black workers, representing about 11% of those impacted, are slightly over-represented compared to their 9% share of the workforce in these states.
The EPI also highlights the importance of these wage increases for workers who are often more susceptible to exploitation. It includes individuals with varying immigration statuses, disabilities, or those employed in specific job sectors, as noted by Martinez Hickey from the institute.
"Minimum wage increases are also vital to many workers who are more vulnerable to exploitation, whether it's because of immigration status, disability, or place of work," Hickey wrote.
Also Read: More Older Adults are Working: Pew Research Shows a Remarkable Increase in the 65+
Inflation Drives States to Raise Minimum Wage
According to AXIOS, many states, including New York, Maryland, and New Mexico, are working towards a $15 per hour minimum wage. This trend marks a victory for the decade-long Fight for $15 movement.
The push for higher wages comes as inflation has reduced the actual value of earnings. To address this, 13 states like California, Ohio, and South Dakota have tied their minimum wages to inflation rates, leading to the current increases.
Despite these changes, workers in 20 states still receive the minimum wage of $7.25 per hour, unchanged since 2009. Raising the minimum wage is seen as essential, particularly as the cost of essentials like food and rent remains high due to inflation.
While inflation hit a 40-year peak in 2022 and is slowing, prices are still higher than pre-pandemic levels. The Center for American Progress found that in 2021, one in four U.S. workers earned less than $15 an hour.
Holly Sklar, CEO of Business for a Fair Minimum Wage, emphasizes that increasing minimum wages helps workers and stimulates the economy. Sklar argues that higher wages lead to more spending, aiding business growth. She stresses that while the federal minimum wage lags behind living costs, state-level increases are vital for workers, businesses, and communities.
Related Article: Paycheck Progress: 22 States to Increase Minimum Wage as 2024 Begins
