Nearly half of the U.S. states are raising their minimum wage in 2024, providing a pay bump to millions of lower-income workers as they continue to grapple with still-high inflation.
Twenty-two states implemented pay increases at the start of the year, while three additional states – Oregon, Nevada and Florida – will boost their minimum wages later in 2024.
The pay hikes are projected to deliver about $7 billion in additional annual wages to 9.9 million workers, according to an analysis published by the Economic Policy Institute, a left-leaning think tank. Workers who benefit from the policy changes could see their annual pay go up anywhere between $216 and $1,380, on average, depending on the size of the minimum wage increase in their state.
Construction workers on a job site on May 05, 2023 in Miami, Florida. ((Photo by Joe Raedle/Getty Images) / Getty Images)
The increases range from a modest $0.23 increase in Michigan to a $2 per hour raise in Hawaii.
Here are the states that raised the minimum wage on Jan. 1, 2024, and the new baseline rate:
Alaska: $11.73
Arizona: $14.35
California: $16
Colorado: $14.42
Connecticut: $15.69
Delaware: $13.25
Hawaii: $14
Illinois: $14
Maine: $14.15
Maryland: $15
Michigan: $10.33
Minnesota: $10.85
Missouri: $12.30
Montana: $10.30
Nebraska: $12
New Jersey: $15.13
New York: $16
Ohio: $10.45
Rhode Island: $14
South Dakota: $11.20
Vermont: $13.67
Washington: $16.28
The federal minimum wage of $7.25 per hour has not increased in more than a decade, although a growing number of states have voted to adopt their own wage increases. There are 20 states with wages above the federal minimum wage, according to the Labor Department. At $16.28 an hour, Washington currently has the highest minimum wage in the nation.
Nevada and Oregon, meanwhile, will boost their minimum wages on July 1 and will set the new rate at $12 an hour and $14.20 an hour, respectively. Florida plans to increase its minimum wage to $13 an hour on Sept. 30.