Hundreds of thousands of workers across more than a dozen cities and states will soon receive higher pay, thanks to minimum wage hikes set to go into effect July 1.
More than 800,000 workers in two states —Alaska and Oregon — as well as Washington, D.C., will be impacted by higher minimum wages that take effect July 1, according to the left-leaning economic think tank Economic Policy Institute (EPI). Additionally, a dozen cities and counties are also set to boost their baseline pay rates next month.
The higher minimum wages come as the federal baseline rate remains at $7.25 an hour, where it’s been parked since 2009. As the cost of living has crept higher in subsequent years, some states and municipalities have boosted their own minimum wages through a combination of ballot measures, inflation adjustments and legislation.
“These minimum wage increases will put more money in workers’ pockets, helping many of them and their families make ends meet,” EPI state economic analyst Sebastian Martinez Hickey wrote in a post about the higher pay. “The average increase in annual wages for a full-time, year-round worker resulting from these minimum wage hikes ranges from $420 in Oregon to $925 in Alaska.”
About 58% of the workers who will receive pay hikes are women, while Black and Hispanic workers will also disproportionately benefit, according to the EPI’s analysis.
While the federal minimum wage hasn’t budged in 16 years, there have been periodic attempts to boost it, with the latest coming from Senator Josh Hawley, a Republican from Missouri, who earlier this month introduced legislation to increase the national baseline wage to $15 per hour. He was joined by Vermont Democratic Sen. Peter Welch as a co-sponsor.
Pay hikes in Alaska, D.C., and Oregon
Alaska’s baseline wage will rise by $1.09 to $13.00 an hour, which was approved via a ballot measure passed by voters. The boost will impact 6.3% of the state’s workforce, or 19,400 people, who will see an average annual pay increase of $925, EPI calculates.
In Washington, D.C., 7.5% of the workforce, or 62,200 workers, will benefit from the minimum wage rising by 45 cents to $17.95 an hour, thanks to an inflation adjustment formula. With the new minimum in place, a full-time worker in the nation’s capital will earn an additional $727 in annual wages, on average, according to the EPI’s calculations.
Oregon’s minimum wage will rise 35 cents to $15.05 an hour on July 1, also through an inflation adjustment, boosting pay for 9.4% of the state’s workforce, or 801,700 workers. The average pay hike will equate to $420 annually.
Where else are workers getting raises?
In addition to Alaska, Oregon and Washington, D.C., 12 more cities and counties across California, Illinois and Maryland will boost their minimum wages next month:
- Alameda, California: The minimum wage will rise 46 cents to $17.46
- Berkeley, California: The minimum wage will rise 51 cents to $19.18
- Emeryville, California: The minimum wage will rise 54 cents to $19.90
- Fremont, California: The minimum wage will rise 45 cents to $17.75
- Los Angeles, California: The baseline wage will rise 59 cents to $17.87
- Los Angeles County, California: The minimum wage will rise 54 cents to $17.81
- Milpitas, California: The minimum wage will rise 50 cents to $18.20
- Pasadena, California: The minimum wage will rise 54 cents to $18.04
- San Francisco, California: The minimum wage will rise 51 cents to $19.18
- Santa Monica, California: The minimum wage will rise 54 cents to $17.81
- Chicago, Illinois: The minimum wage will rise 40 cents to $16.60
- Montgomery County, Maryland: The minimum wage will rise 50 cents to $17.65
Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.
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