Millions see pay hikes as local laws outpace stagnant federal minimum wage
Wage Hikes Take Effect in July Across the U.S.
Workers across the country are getting a raise this month as new local and state minimum wage laws take effect. More than 880,000 workers in Alaska, Oregon, and Washington, D.C., are seeing increased pay starting July 1. In the U.S. capital, the minimum wage has risen from $17.50 to $17.95 per hour.
A dozen other cities and counties — including Chicago, Los Angeles, and San Francisco — are also implementing minimum wage increases this month.
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Who Benefits?
Nearly 6 in 10 of the affected workers are women, and nearly half work full-time, according to the Economic Policy Institute (EPI).
“These increases will provide needed relief to workers struggling to pay for the basics,” said Yannet Lathrop, senior researcher and policy analyst at the National Employment Law Project. “But more raises are needed, especially at the federal level, where Congress has let the minimum wage languish at $7.25 an hour for more than 15 years.”
The Bigger Picture: Inflation and Affordability
Minimum wage increases are seen as critical in helping workers keep pace with inflation, which soared to a four-decade high of 9.1% in mid-2022 and has since dropped to 2.4%.
“There’s no doubt there is an affordability crisis throughout the country,” Lathrop said.
Where Are Wages Rising? A State-by-State Look
According to EPI’s Minimum Wage Tracker, 30 states and Washington, D.C. now have a minimum wage higher than the federal $7.25 rate. Some of the new wage increases this month include:
- Alaska:
Wage rises from $11.73 to $13.00, with a goal to reach $15.00 by 2027. - Oregon:
- $14.05/hour in non-urban areas
- $15.05/hour in the rest of the state
- $16.30/hour in the Portland metro area
- Washington, D.C.:
Minimum wage increases from $17.50 to $17.95 per hour - California (select sectors):
Healthcare workers get a raise based on facility type. Top tier wage now set at $24/hour.
Ten California cities and counties — including Berkeley, Los Angeles, and San Francisco — adjust for inflation. Example:- San Francisco: Wage increases from $18.67 to $19.18/hour
- Chicago:
Minimum wage increases from $16.20 to $16.60/hour for businesses with four or more employees - Washington State cities:
Wage increases in Burien, Everett, and Renton based on employer size
Tipped Workers Also See Gains
In many jurisdictions, tipped workers’ minimum wages are also rising in tandem with regular minimum wage increases.
The Trend: Raises Not Just in July
While many pay raises went into effect on January 1 — when 21 states and 48 cities raised minimum-wages — some jurisdictions opt for mid-year changes.
For example, Florida is set to increase its minimum wage by $1.00 to $14.00/hour on September 30.
According to the National Employment Law Project, a total of 88 jurisdictions across 23 states will have implemented minimum-wage hikes by end of 2025.
The Ripple Effect
These new wage policies will directly impact over 3 million minimum-wage workers and are expected to indirectly raise pay for 6.2 million more employees due to ripple effects within company pay structures, according to EPI data.
