Minimum wage set to rise in 23 states next year as $15 an hour, and beyond, picks up steam

Minimum wage hikes traditionally have been aimed at helping low-paid workers afford the basics, such as food, medicine and housing.

But a growing number of states and localities are raising their pay floors to $15 an hour or above, providing workers a somewhat larger financial cushion so they can not only pay for essentials with less of a struggle but also make some discretionary purchases. 

Twenty-one states and 48 cities and counties are set to raise their minimum wages on January 1, according to a report provided exclusively to USA TODAY by the National Employment Law Project, a worker advocacy group. Others states and few more cities and counties will raise their minimum wages later in 2025.

While the pay floor bumps mark an annual ritual, the report highlights an acceleration in the size of minimum wage increases in recent years.

What states are raising the minimum wage to $15?

On New Year’s Day, three states – Illinois, Delaware and Rhode Island – will reach a $15 pay base for the first time, joining seven states already there or above it. Two states, California and New Jersey, are set to push their pay floors further above $17 for some health care worker

Meanwhile, 47 localities will also reach or top $15 on Jan. 1, including more than two dozen in California, most of which will climb further above $17.

Burien, Washington, already subject to the state’s $16.28 minimum pay, will vault to $21.16 for employers with 500 or more workers in King County, making it the nation’s highest pay floor.“Remember that a full-time worker earning $17 per hour is only earning $35,360 annually pre-tax,” Yannet Lathrop, NELP’s senior researcher and policy analyst, wrote in an email. “Those wage levels won’t make workers wealthy, but they will help with paying for the basics, for a few luxuries (hopefully)."

She added, “Those higher wages may also improve their mental and physical health, their ability to access credit, and may lead to better educational outcomes of their children.”In January, several states will take a step in a series of minimum wage hikes over several years. Among the three hitting $15 for the first time, Illinois and Rhode Island are at $14 and Delaware is at $13.25.

Others are increasing their minimums, but stopping short of $15. Missouri’s base pay will jump to $13.75 from $12.30 and Nebraska’s to $13.50 from $12.Kaamilya Hobbs, 33, of Kansas City, Missouri, earns $13.44 an hour working 20 to 25 hours at a local Arby’s. Her boyfriend mostly cares for their three children, a newborn and two toddlers, but sometimes does food delivery for DoorDash.

Their combined pay is barely enough to pay basic expenses. Sometimes, the couple has to delay paying rent or a cellphone bill for 30 days. Read more...