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Home » US States To Increase Minimum Wage in 2024 Amid Skyrocketing Cost of Living
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US States To Increase Minimum Wage in 2024 Amid Skyrocketing Cost of Living

OmowunmiBy OmowunmiJanuary 14, 20244 Mins Read
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In 2024, minimum-wage workers in half of the country will experience a pay increase. However, it’s anticipated that this increase may not be sufficient to match the rising cost of living.

On January 1, minimum wage increases took effect in 22 states. Additionally, three more states — Nevada and Oregon on July 1 and Florida on September 30 — will implement raises later in the year.

The minimum wage increases range from 23 cents to $2, setting the new state minimum wages between $10.30 and $16.28. In 2024, Washington state will have the highest minimum wage in the U.S. at $16.28 per hour, followed by California at $16.

In addition to the state increases workers in almost 40 counties and metropolitan areas will experience raises. This will elevate their minimum hourly pay above their state’s minimum wage.

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Denver, for instance, is increasing its minimum wage to $18.29 per hour, surpassing Colorado’s new minimum of $14.42 per hour. In Tukwila, a Seattle suburb, large business employers must pay workers at least $20.29 an hour. Additionally, medium-size employers must pay at least $18.29, exceeding the state’s new $16.28 minimum.

Also, workers in specific industries, such as healthcare and fast-food workers in California, may witness pay increases. This follows the signing of two union-backed wage bills by the state’s governor earlier in 2023.

An estimated 9.9 million U.S. workers will benefit from the state minimum wage increases. These new minimums will provide an automatic pay raise for the lowest-paid workers. Additionally, the impact will extend to workers whose wages are only slightly higher than the minimum, boosting their pay.

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Meanwhile, wages for workers in 20 states will continue to be governed by the federal minimum wage of $7.25, which hasn’t increased since 2009. As of October 2023, approximately 3 million workers, constituting 2% of the total U.S. workforce, earned less than $10 an hour, as reported by the EPI. 

Additionally, nearly 18 million workers were earning less than $15 an hour, a pay level advocated by many labor activists in recent years. This year, among the 25 states increasing their minimum wage, 19 states and Washington, D.C., have tied theirs to the cost of living. However, despite this, some experts argue that the gains won’t match the impact of inflation.

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The starting point for the minimum wage is still much lower than it should be. This perspective comes from Rick Wartzman, the author of the 2022 book “Still Broke: Walmart’s Remarkable Transformation and the Limits of Socially Conscious Capitalism.” 

Wartzman is also a member of the board of Living Wage for U.S., a nonprofit focused on raising wages to cover the actual costs of living. According to him, this discrepancy remains a critical factor in the ongoing challenges associated with minimum wage.

The 2024 pay increases are significant for minimum-wage workers, according to Wartzman, but he emphasizes that they fall short. Wartzman states that a livable wage is $20 an hour or $40,000 a year for a full-time worker, surpassing the majority of state and local minimum wages.

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