As the clock ticks into 2024, millions of American workers will welcome a pay increase. Minimum wage adjustments are set to take effect in 22 states and 38 cities or counties across the nation in the new year.
Data from the Economic Policy Institute (EPI) shows that 12 states, including California, Arizona and Connecticut, are raising minimum wages based on an inflation adjustment formula.
Meanwhile, eight states, including Maryland, Illinois and New York, have enacted new laws to boost their minimum wages. Nebraska and Missouri voters approved ballot measures to do the same.
Hawaii will see the most substantial increase, jumping from $12 per hour to $14 per hour. On the other hand, Michigan will witness the smallest rise of $0.23 per hour, reaching $10.33.
Starting Jan. 1, Maryland, New Jersey, and upstate New York will join California, Connecticut, Massachusetts, and Washington in establishing a minimum wage of $15 or higher, with Washington leading at $16.28 per hour.
While the wage hike is sure to make an impact on retail and fast-food workers, small, local businesses must also prepare to pay employees more.
Business owners like Victoria Foster of Victory Lane Boutique in Cincinnati, Ohio, emphasized the need to raise salaries for employees.
“You have to be able to raise salaries for employees just to be able to survive, to be able to live comfortably,” Foster said.
However, the minimum wage increase may not benefit all workers in the 22 states. Some business owners may opt to cut staff to manage higher costs.
In California, where the state minimum wage reaches $16 on Jan. 1, fast-food workers will see an even more significant increase to $20 per hour by April 2024.
Nearly 10 million workers are expected to see a pay raise in the new year, with EPI estimating that almost 60% of those workers are women, and over a quarter are parents.
Despite this shift, it’s important to note that the federal minimum wage, stagnant since 2009, remains at $7.25 per hour.
States to raise minimum wage in 2024:
- Alaska: $11.73.
- Arizona: $14.35.
- California: $16.00.
- Colorado: $14.42.
- Connecticut: $15.69.
- Delaware: $13.25.
- Hawaii: $14.00.
- Illinois: $14.00.
- Maine: $14.15.
- Maryland: $15.00.
- Michigan: $10.33.
- Minnesota: $10.85.
- Missouri: $12:30.
- Montana: $10.30.
- Nebraska: $12.00.
- New Jersey: $15.13.
- New York (upstate): $15.00.
- New York (NYC, Long Island, Westchester): $16.00.
- Ohio: $10.45.
- Rhode Island: $14.00.
- South Dakota: $11.20.
- Vermont: $13.67.
- Washington: $16.28.