Hundreds of thousands of workers across the U.S. are set to get a pay bump starting July 1, as minimum wage increases take effect in more than a dozen states, cities, and counties.
According to the Economic Policy Institute (EPI), more than 800,000 workers in Alaska, Oregon and Washington, D.C. alone will see their baseline pay go up next month. Another dozen local jurisdictions—mostly in California—will also implement increases.
Why It Matters
The pay hikes come as the federal minimum wage remains stuck at $7.25 per hour, unchanged since 2009. With the cost of living continuing to rise, many states and cities have raised their own minimums through legislation, ballot measures or inflation adjustments.
What To Know
In Alaska, the minimum wage will rise by $1.09 to $13.00 an hour, an increase approved by voters through a ballot measure. EPI calculates the boost will affect 19,400 workers—about 6.3 percent of Alaska’s workforce—and add an average of $925 per year to their paychecks.
Washington, D.C. will raise its minimum by 45 cents to $17.95 an hour due to an automatic inflation adjustment, impacting an estimated 62,200 workers, or 7.5 percent of the city’s workforce. The average worker there will earn about $727 more per year.
In Oregon, about 801,700 workers—roughly 9.4 percent of the state’s workforce—will see their minimum wage climb 35 cents to $15.05 an hour, also tied to inflation. That’s an average annual increase of $420 per worker.
Beyond those statewide and D.C. changes, minimum wages will increase in 12 cities and counties next month.
That includes 10 cities and counties in California, with increases ranging from 45 to 59 cents an hour. New hourly rates will range from about $17.46 in Alameda to nearly $20 in Emeryville—one of the highest local minimum wages in the country. Cities including Berkeley and San Francisco will see their wages climb to $19.18 an hour, while workers in Los Angeles and surrounding areas will earn just under $18.
Outside California, Chicago, Illinois, will boost its minimum wage by 40 cents, bringing it to $16.60 an hour.
And in Maryland, Montgomery County will increase its minimum wage by 50 cents to $17.65 an hour.
The EPI estimates that about 58 percent of workers benefiting from the July 1 hikes are women, while Black and Hispanic workers will also disproportionately gain.
What People Are Saying
“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 said. “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.”
What Happens Next
Calls to raise the federal wage persist. This month, Republican Senator Josh Hawley of Missouri and Democratic Senator Peter Welch of Vermont introduced a bipartisan bill to lift the federal minimum to $15 per hour—more than double the current rate.
Starting July 1, employers will have to ensure they review the changes made in different cities to minimum wage rates and pay their employees accordingly.
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