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Published: Dec 28, 2023 4 min read
Photo collage of two construction workers pointing to a sign that says  Minimum Wage Increase Ahead
Money; Shutterstock

Nearly half of the U.S. is ringing in the new year with higher pay for minimum wage workers.

On Jan. 1, 22 states will bump up their minimum wage, according to a report from the Washington, D.C. think tank Economic Policy Institute (EPI). The increases come by way of ballot measure, legislation and inflation adjustment measures, and are expected to add anywhere from $216 to $1,380 to the annual earnings of almost 10 million workers.

The impact of these adjustments will vary, but the changes could provide crucial support to many struggling Americans. About 1 in 5 of all workers receiving wage increases currently live below the poverty line, EPI says.

Women make up about 58% of the workforce receiving raises, EPI notes, and Black and Hispanic workers make up about 49%.

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The wage increases come at a time of record low unemployment, and will kick off the "strongest wage growth for low-wage workers in decades," according to the think tank.

Still, the EPI says, the historical growth of U.S. workers' hourly pay over the last several decades falls flat compared to the rapid growth of worker productivity.

The federal minimum wage of $7.25 hasn't changed since 2009, and seven states still cap their minimum wage at that rate. Previous research shows that if wages kept pace with production, the minimum wage would be $19 today.

Thirty eight cities and counties across the U.S. are also raising wages, mostly through inflation adjustments. Among these, the largest pay increase comes from Boulder County, Colorado, which is adding $2.04 to its minimum pay. Other cities, including Seattle, Denver and Portland, Maine are seeing increases between 20 cents and $1.37.

In September, Florida will increase its minimum wage as well, bringing it from $11 to $12.

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States where minimum wage workers are getting a raise

Here are the 22 states where minimum wage workers are getting a raise in 2024:

  • Alaska: $10.85 to $11.73
  • Arizona: $13.85 to $14.35
  • California: $15.50 to $16
  • Colorado: $13.65 to $14.42
  • Connecticut: $15 to $15.69
  • Delaware: $11.75 to $13.25
  • Hawaii: $12 to $14
  • Illinois: $13 to $14
  • Maine: $13.80 to $14.15
  • Maryland: $13.25 to $15
  • Michigan: $10.10 to $10.33
  • Minnesota: $10.59 to $10.85
  • Missouri: $12 to $12.30
  • Montana: $9.95 to $10.30
  • Nebraska: $10.50 to $12
  • New Jersey: $14.13 to $15.13
  • New York: $14.20 to $15 ($15 to $16 in New York City)
  • Ohio: $10.10 to $10.45
  • Rhode Island: $13 to $14
  • South Dakota: $10.80 to $11.20
  • Vermont: $13.18 to $13.67
  • Washington: $15.74 to $16.28

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