As on January 1, 2025, American workers celebrated their first-ever landmark minimum wage increase, with 21 states and 48 cities across the nation becoming beneficiaries of these new regulations. This is all part of their effort to ensure that the increasing cost of living and inflation do not affect consumers so much.
But that was only the beginning of things. Therefore, many other raises have been set to be considered later in 2025 at both state and city levels. According to the National Employment Law Project, millions of workers will still join to benefit as such the year grows.
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States that would simultaneously hike their rates again later in 2025 include:
Some states increase their minimum wage starting the year, while others expect it to do so in the mid to latter parts of summer and fall.
- Michigan: Their minimum wage went up to $12.48 per hour on February 21.
- Alaska: Will increase to $13.00 per hour beginning July 1.
- California: Healthcare workers will see wages between $18.63 and $24, depending on the type of facility, starting July 1.
- Oregon: On July 1, the standard wage becomes $15.05, with adjustments for the Portland metro area ($16.30) and nonurban areas ($14.05).
- Florida: Will raise the minimum wage to $14.00 per hour on September 30. Tipped workers will earn $10.98.
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Cities that will consider minimum wage increases in 2025
The cities continue to set higher wage floors that vary from state action:
- Santa Fe, New Mexico: Increased to $15.00 per hour from March 1.
- Los Angeles County, California: Will increase to $17.81 from July 1.
- San Francisco: Will increase to $19.18 from July 1.
- Washington, D.C.: Will increase to $17.95 from July 1.
- St. Paul, Minnesota: Small and micro businesses will be paying $15.00 and $13.25, respectively, starting July 1.
Politicization of wage issues
There are a few states where deliberations over further wage hikes are going on:
- Virginia: Governor Glenn Youngkin vetoed a bill increasing the minimum wage to $13.50 in 2026 and $15.00 by 2027.
- Tennessee: A proposed bill to increase the wage to $20 per hour for 2025 did not advance.
- North Carolina: Proposals under consideration to raise the minimum wage to $22 or to $18 gradually by 2030.
- Michigan: A newly enacted law by Gov. Gretchen Whitmer sets its sights on a $15.00 per hour target by 2027 with gradual increases for tipped workers.
- Florida: Though it sees an annual increase built-in, proposed bills would exempt apprenticeships and work-study programs.
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