Starting July 1, many workers across the U.S. will see a raise in their pay as new minimum wage increases take effect in different states, cities, and counties. These pay raises are being made to help workers deal with the rising cost of living.
More than 800,000 workers will benefit, especially in places like Alaska, Oregon, and Washington, D.C. Some cities in California and other areas will also see wage increases to support their local workers.
Why These Increases Are Important
The federal minimum wage has stayed at $7.25 per hour since 2009 and has not gone up since. As living costs continue to rise due to inflation, many cities and states are taking steps to increase their local minimum wage.
These local changes make sure workers can earn enough money to pay for basic needs like food, rent, and healthcare, especially in places where everything costs more.
Key Changes in Minimum Wage by Location
Alaska:
Alaska is raising its minimum wage by $1.09, making it $13.00 per hour. This decision came from a ballot measure passed by voters. Around 19,400 workers, or 6.3% of the state’s workforce, will be affected. These workers are expected to earn about $925 more each year.
Washington, D.C.:
In Washington, D.C., the minimum wage will increase by 45 cents to reach $17.95 an hour. This change is part of a yearly adjustment based on inflation. About 62,200 workers, or 7.5% of the city’s workforce, will see the difference. On average, each worker will earn $727 more per year.
Oregon:
Oregon is raising its minimum wage by 35 cents to $15.05 an hour. This raise will affect about 801,700 workers, making up 9.4% of the state’s labor force. These workers are expected to gain an average of $420 more per year in their pay.
California:
In California, several cities and counties are updating their minimum wages. In Emeryville, workers will earn nearly $20 an hour, making it one of the highest in the country. Other cities like Berkeley and San Francisco will increase their rates to $19.18, while Los Angeles workers will make just under $18 per hour. A total of 10 cities and counties in California are adjusting their wages, with increases ranging from 45 to 59 cents an hour.
Other Places:
Chicago, Illinois, is raising its minimum wage by 40 cents to $16.60 per hour. In Maryland, Montgomery County will increase its minimum wage by 50 cents, bringing it to $17.65 per hour. These changes are being made to help local workers earn more to keep up with higher living costs.
Who Will Benefit the Most?
The Economic Policy Institute (EPI) reports that 58% of the workers getting a raise are women. In addition, Black and Hispanic workers will benefit the most from these increases. These raises are very important for many families who rely on minimum wage jobs to cover their everyday expenses.
What Experts Are Saying
Sebastian Martinez Hickey, a state economist at the EPI, shared that these wage increases will help workers take home more money, making it easier for them and their families to afford basic needs. He pointed out that depending on the state, a full-time worker could earn anywhere from $420 to $925 more per year thanks to the new wage rates.
What’s Coming in the Future
The conversation around raising the federal minimum wage continues. A new bipartisan bill was introduced in Congress by Republican Senator Josh Hawley and Democratic Senator Peter Welch.
The bill proposes increasing the federal minimum wage to $15 per hour, which is more than double the current rate of $7.25. If passed, it would be the first raise at the federal level in over 15 years. Until then, states and cities will continue to make changes on their own to support their workers.
Starting July 1, employers across the country need to follow the new wage rules to make sure their employees are getting paid correctly. These updates are a big step toward helping workers handle the cost of living in today’s economy. If you live in an area with one of these changes, you can expect to see a little more money in your paycheck very soon.
FAQs
What is the minimum wage increase for 2024?
The increase varies by location. Alaska is raising its wage by $1.09 to $13.00 an hour, Oregon by 35 cents to $15.05, and Washington D.C. by 45 cents to $17.95 starting July 1, 2024.
Which cities are raising the minimum wage in July 2024?
Cities in California like San Francisco, Berkeley, Emeryville, and Los Angeles will see wage hikes. Other cities such as Chicago, IL, and Montgomery County, MD, are also raising their minimum wages.
Why is the federal minimum wage still $7.25?
The federal rate has not changed since 2009 due to disagreements in Congress. However, many cities and states are choosing to raise wages on their own to help workers cope with rising costs.
How much is the wage increase in Alaska, Oregon, and Washington D.C.?
Alaska is increasing by $1.09 to $13.00, Oregon by 35 cents to $15.05, and Washington D.C. by 45 cents to $17.95 per hour, all beginning July 1, 2024.
Who benefits most from these wage increases?
According to EPI, women make up 58% of those affected. Black and Hispanic workers are also expected to gain the most from these changes, helping close wage gaps.
