These Are the States Getting Minimum Wage Bumps in January

The topic of what is an acceptable minimum wage continues to raise eyebrows. Some states are attempting to rectify the situation by increasing wages for their workers. Is your state getting a bump in pay?

According to the Economic Policy Institute (EPI), the new pay raise that went into effect on Jan. 1 raised wages for over 9.2 million workers in 21 states by $5.7 billion in total. Workers were given an increase in the following states: Maine, Vermont, Washington, Montana, Minnesota, Illinois, Michigan, New York, Rhode Island, South Dakota, Ohio, New Jersey, Connecticut, California, Colorado, Nebraska, Missouri, Virginia, Delaware, Arizona, and Alaska.

The EPI also shared an analysis of state minimum wage increases. The data reveals that increasing the amount workers are paid will help to combat racial and gender wage disparities.

The institute found that women make up almost three-fifths (58.2%) of workers getting a raise. Also, studies found that Black and Hispanic workers will benefit, as Black workers make up 9.1% of the wage-earning workforce in the states with increases but are 11.3% of affected workers. The research also found that Hispanic workers are 19.5% of the workforce in these states, but 38.8% of the workers who will receive wage increases.

The EPI also found that more than one-quarter of workers who will receive a minimum wage increase are parents. Additionally, 20.4% of affected workers are in families with incomes below the poverty line, and 48.5% have family incomes below twice the poverty line.

How Much More Money Will Those Who Receive Minimum Wage Increases Generate Annually?

2025 minimum wage increased by State per NPRhttps://t.co/D80hfQOGRf pic.twitter.com/wVzmwOeplX

— Bob Brinker (@BobBrinker) January 2, 2025

The average annual income bump for those who work in the states seeing an increase is about $420 per year. The Economic Policy Institute reported, "These additional earnings are critical for ensuring workers don’t lose ground due to rising prices, but the minimum wage level may still be too low, especially if the minimum wage was indexed years ago and not revisited since."

The report continued, "Workers in states implementing minimum wage increases through ballot measures and legislation will receive larger pay increases. On average, full-time affected workers in ballot measure and legislation states will earn $868 and $731 more per year, respectively. The largest state increase taking effect in January will be in Delaware, where legislation will lift the minimum wage by $1.75 to $15.00 per hour. As a result, the average full-time worker affected by the increase will earn $1,200 more annually."

The data shows that cities and counties, particularly in California, Colorado, and Washington, continue to be leaders in setting minimum wage policies. Most counties in California increased their minimum wages in January, reaching at least $17 an hour except in Oakland. In Colorado, the minimum pay is now $18.81 per hour.

American Progress reported in July 2024 that the federal minimum wage is $7.25 per hour, which comes out to $15,080 per year. According to the 2024 poverty guidelines, a full-time employee earning this amount makes just $20 more than the poverty guideline for a one-person household. Minimum-wage workers who have kids or care for other family members fall well below poverty levels at that pay level.

The wage increases for the affected states took place on Jan. 1, 2025.