Thousands of workers across the country will see their pay increase as new minimum wage laws take effect this month.
The minimum wage rose starting July 1 for more than 880,000 workers in Alaska, Oregon, and Washington, D.C. In D.C., the city’s minimum wage increases from $17.50 per hour to $17.95 per hour.
A dozen cities and counties, including Chicago, Los Angeles, and San Francisco, are also raising their minimum wage.
Nearly 6 in 10 workers who will see a bump are women and nearly half work full-time, according to a report from the Economic Policy Institute (EPI).
Minimum wage increases are a key to helping people keep up with inflation, which hit a four-decade high of 9.1% in mid-2022 before sliding back to 2.4% recently.
“There’s no doubt there is an affordability crisis throughout the country, and these increases will provide needed relief to workers struggling to pay for the basics,” Yannet Lathrop, senior researcher and policy analyst at the National Employment Law Project, told Yahoo Finance. “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.”
According to EPI’s Minimum Wage Tracker, 30 states and D.C. have a higher minimum wage than the federal minimum.
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Here’s a rundown of the wage hikes this summer:
Some of these increases are earmarked for certain sectors. In California, for example, the wage hike is for healthcare sector workers, and the amount depends on the type of facility. The top tier is now a minimum of $24 an hour.
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In Alaska, the minimum wage jumps from $11.73 to $13 an hour, part of legislation to reach $15 by 2027.
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In Oregon, depending on the location, wages will increase to $14.05 an hour in non-urban areas, $16.30 an hour in the Portland metro area, and $15.05 in the rest of the state. It’s less than a dollar increase per tier.
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Ten cities and counties in California will see small increases to account for inflation, including Berkeley, Los Angeles, and San Francisco: The wage goes to $19.18 an hour, from $18.67.
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In Chicago, the pay floor goes to $16.60 for businesses with four or more employees, up from $16.20.
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Three cities in Washington state are due for wage increases based on a business’s number of employees: Burien, Everett, and Renton.
In many cities, minimum wage is linked to whether or not you also get paid in tips. In some areas, the minimum wage required for tipped employees also increases with the minimum wage.
The bulk of pay increases kicked off on Jan. 1 as 21 states and 48 cities raised their minimum wage rates. Some places, however, schedule their changes at another point during the year. For example, Florida’s minimum wage will increase $1.00 to $14.00 per hour on Sept. 30.
