Nearly two dozen states will increase their minimum wage, or legally mandated base pay, on Wednesday, Jan. 1. Thirteen states have a minimum wage linked to inflation, state legislatures approved six others and voters said yes to ballot measures in two states. That brings the total amount of states raising the minimum wage to 21.
The Economic Policy Institute estimates the increases will affect 9 million Americans. Nearly 70% of the workers live in households below the poverty line. One-third of the employees live in a state with at least a $15 per hour minimum.
Those states include Illinois at $15, New Jersey at $15.49, New York at $15.50 per hour, California at $16.50 per hour and Washington state, increasing to $16.66 per hour.
Cities and municipalities within a state can set a higher minimum wage rate for people who live in areas with a higher cost of living.
Examples include Chicago, New York City and Long Island, which all have pay rates that exceed their state’s base rate.
Five states, Alabama, Louisiana, Mississippi, South Carolina and Tennessee don’t have state minimum wage laws. Instead, those states use the federal minimum wage.
In those cases, it’s important to note that the federal minimum wage remains at $7.25 per hour. It has been at that level since 2009.