2024 Minimum Wage Surge: Transformations Nationwide"

By J. Alex Jan 9, 2024

As the new year unfolds, minimum wage earners across 22 states and approximately 40 cities and counties nationwide are set to experience higher pay compared to 2023. These increases stem from planned escalations or the linkage of minimum wage to inflation, often tied to the Consumer Price Index.

Starting January 1, seven states and the District of Columbia will enforce minimum wages of $15 or more, welcoming newcomers like Maryland, New Jersey, and several parts of New York State to this bracket. For instance, in 2024, regions like New York City, Westchester, and Long Island, previously set at $15, will elevate to $16. Washington state will lead with the highest minimum wage at $16.28, closely followed by California at $16, up from $15.50.

Hawaii will undergo the most significant increase, with its minimum wage climbing $2 this year. However, January 1 isn't the exclusive date for these changes. States like Nevada and Oregon are slated for increases by July 1, while Florida's hike is scheduled for September. In many instances, minimum wage rates in cities and counties surpass those established by their respective states.

In 2024, several states are set to implement minimum wage increases:

• Alaska: $11.73 (up from $10.85)
• Arizona: $14.35 (up from $13.85)
• California: $16 (up from $15.50)
• Colorado: $14.42 (proposed, up from $13.65)
• Connecticut: $15.69 (up from $15)
• Delaware: $13.25 (up from $11.75)
• Florida: $13 (up from $12) effective September 30
• Hawaii: $14 (up from $12)
• Illinois: $14 (up from $13)
• Maine: $14.15 (up from $13.80)
• Maryland: $15 (up from $13.25 for large employers and $12.80 for small employers)
• Michigan: $10.33 (up from $10.10)
• Minnesota: $10.85 for large employers (up from $10.59); $8.85 for others (up from $8.63)
• Missouri: $12.30 (up from $12)
• Montana: $10.30 (up from $9.95)
• Nebraska: $12 (up from $10.50)
• Nevada: $12 (up from $10.25 or $11.25 based on health benefits) - effective July 1, 2024
• New Jersey: $15.13 (up from $14.13)
• New York: $15 (up from $14.20, except in specific areas)
• Ohio: $10.45 (up from $10.10)
• Oregon: Its $14.20 minimum wage will adjust for inflation on July 1
• Rhode Island: $14 (up from $13)
• South Dakota: $11.20
• Vermont: $13.67 (up from $13.18)
• Washington: $16.28 (up from $15.74)
• District of Columbia: Its $17 minimum wage will adjust for inflation on July 1

Unless otherwise stated, these changes will take effect on January 1.

In Tukwila, Washington, the minimum wage will rise to $20.29 in January, making it the highest among states, counties, and cities nationwide. Seattle will follow closely at $19.97. About 40 cities and counties will also witness increases in their minimum wages, including Flagstaff, Arizona ($17.40); Mountain View, California ($18.85); Denver, Colorado ($18.29); and Portland, Maine ($15).

Certain states are implementing significant wage hikes tailored to specific sectors. For example, in California, starting April, fast food workers will earn a minimum of $20 per hour, followed by healthcare workers on June 1, starting between $18 and $23 an hour and eventually reaching $25.

Despite regional progressions, the federal minimum wage has remained at $7.25 since 2009, with 20 states following this standard. Advocates, like Holly Sklar from Business for a Fair Minimum Wage, emphasize the considerable loss in purchasing power for workers tied to the $7.25 rate.

Sklar and others advocate for higher minimum wages, aiming not only to adjust for inflation since 2009 but also based on the 1968 standard, which, adjusted for today, would equate to $14.39. MIT's living wage calculator underscores this disparity, indicating that in states like Mississippi, where the minimum wage is $7.25, individuals may need $15.30 an hour to cover basic needs.

With limited federal progress, Sklar anticipates states and localities to drive minimum wage increases, emphasizing the economic benefits for both workers and employers. Enhanced wages ease financial stress for workers, enabling them to afford previously out-of-reach expenses. Additionally, increased spending by minimum wage earners injects money into the economy. For businesses, this translates to improved employee retention and reduced turnover costs, contributing to a positive economic cycle.

The year 2024 sets the stage for several states to implement increases in their minimum wage, effective January 1 or as otherwise noted

Photo byKenny EliasononUnsplash

Credit] CNN