This is how (and where) minimum wage will increase in 2025
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This is how (and where) minimum wage will increase in 2025
By the end of 2025, workers across 23 states and 65 cities and counties will see their wages increase noticeably. In nine states, the minimum wage will rise to at least $15 an hour, with the majority of localities—a total of 51—upping hourly pay to $17 or higher.
A new report by the National Employment Law Project (NELP) tallies both the minimum wage changes slated for 2025, and the new protections that workers stand to benefit from in the new year. In such states as California and New Jersey, some healthcare workers will see their wage floor increase to at least $18 an hour—but in many states, worker pay will get a boost to account for cost of living changes. Across Washington, D.C., and Chicago, wages are being increased to address inflation and to eventually eliminate the subminimum wage for tipped workers.
Many of these minimum wage changes can be traced back to the Fight for $15 movement, which dates back to 2012 and was spearheaded by the Service Employees International Union; since then, 14 states have introduced or are phasing in a $15 minimum wage. Still, there are many states that have maintained an hourly minimum wage in line with the federal standard of just $7.25—and even a number of states that have raised the minimum wage have not ensured hourly pay will keep pace with inflation.
Beyond the minimum wage, however, Americans across the country have won several other improvements to their working conditions this year—even in red states that have not historically adopted worker-friendly policies. In Alaska and Missouri, workers will now be entitled to paid sick leave (in addition to a $15 minimum wage that will kick in within the next two years).
A lengthy campaign in Michigan pushed up the wage floor and finally eliminated the subminimum wage for tipped workers, a change that could impact nearly half a million residents when the tipped wage is phased out by 2030. In Minnesota, a similar change will now prohibit subminimum wages for small business employees and young workers.
Both of these developments—along with similar measures to eliminate the subminimum wage across both states and localities—indicate that millions of hospitality workers may soon reap the benefits of the yearslong movement to raise the wage floor.
OK Boštjan Dolinšek