Many states in the United States are getting ready for higher minimum wages starting in 2025. This change is important for workers who earn lower incomes, as it can help with the rising prices of everyday essentials like housing, food, and health care.
Why Are States Raising the Minimum Wage?
The federal minimum wage has stayed at $7.25 per hour since 2009. Since the cost of living is much higher now, and basic needs are more expensive, individual states are setting their own higher minimum wages to protect workers.
Only a small number of workers still earn the federal minimum wage, and these are the people most affected by inflation.
Each state decides whether and how to raise its minimum wage based on local costs and labor conditions. Most of the new rates are finalized by October to take effect on January 1, 2025.
Which States Will Raise the Minimum Wage?
The following states will see an increase in the minimum wage:
- California will go from $16.00 to $16.50 per hour.
- Washington will increase from $17.50 to $17.95 per hour.
- New York will raise its rate from $15.50 to $16.00 per hour.
- Florida will move up from $13.00 to $14.00 per hour.
- Oregon will increase from $14.70 to $15.05 per hour.
- Arizona will go from $14.35 to $14.70 per hour.
- Delaware will see a jump from $13.25 to $15.00 per hour.
- Colorado will go from $14.42 to $14.81 per hour.
- Connecticut will raise its rate from $15.69 to $16.35 per hour.
- Michigan will go from $10.33 to $10.56 per hour.
What Should Employers Do?
All businesses need to prepare for these changes to avoid any penalties for non-compliance. Here’s what employers should do:
- Check official state websites to confirm the new minimum wage rates for 2025.
- Update payroll systems and employee records to include the new rates before January 1.
- Adjust wages for tipped workers or those in training, if required by law.
- Notify employees about the change in writing so everyone is clear about their new pay.
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Check out: VA Clothing Allowance: Eligibility and Application Guide for 2025
