The start of 2025 brings some good news for workers in many U.S. states: Minimum wages rose in 21 states and Washington, D.C. at the start of the year, giving 9.2 million workers $5.7 billion in additional earnings, according to the left-leaning Economic Policy Institute. This marks one of the largest-ever state minimum wage increases in recent U.S. history. But while the hikes are a result of successful ballot measures to raise state wage floors, the federal minimum wage remains at $7.25 an hour and has not increased since 2009.
Several other cities and municipalities—predominantly in California, Colorado and Washington—are raising their hourly minimums above state floors. Workers in Tukwila, Washington will have the highest minimum hourly wage this year at $21.10 an hour. Other cities, like New York, are raising their minimum overtime exemption pay for salaried employees.
The new year also welcomes new pay transparency laws in five states: Illinois, Massachusetts, Minnesota, New Jersey and Vermont. In total, 14 states, Washington D.C. and several city or county jurisdictions require employers to publish salary ranges with job postings. Pay transparency requirements have gained popularity in recent years and have largely been pushed through by local jurisdictions. A federal bill on the matter was introduced to Congress in 2023.
—Maria Gracia Santillana Linares, Careers Reporter
Tags: Forbes