- 21 states, 48 cities and counties lifted minimum wage this year
- Higher wage floors help women, Black, and Hispanic employees
- Despite state and local movement, the federal minimum wage hasn’t changed in over 15 years, the longest-ever period without an increase
Millions of workers around the country can expect a pay increase thanks to minimum wage hikes that took effect on January 1.
In states that raised their wage, more than 9.2 million employees, or roughly 13.7% of the workforce, will benefit, according to the Economic Policy Institute, a worker advocacy think tank. Its analysis shows women comprise nearly three-fifths of the workers getting a raise. The changes also significantly benefit Black and Hispanic workers relative to their share of the workforce.
Listed below are the 21 states where the minimum wage rose, according to the National Employment Law Project (NELP), a worker advocacy organization. In addition, NELP’s tabulation shows 48 cities and counties lifted their minimums.
Minimum Wage Increases by State
| State | 2025 Minimum Wage | 2024 Minimum Wage |
|---|---|---|
| Alaska | $11.91 | $11.73 |
| Arizona | $14.70 | $14.35 |
| California | $16.50 | $16.00 |
| California (Healthcare only) | $18.00-$23.00 (varies by facility) | $18.00-$23.00 (varies by facility) |
| Colorado | $14.81 | $14.42 |
| Connecticut | $16.35 | $15.69 |
| Delaware | $15.00 | $13.25 |
| Illinois | $15.00 | $14.00 |
| Maine | $14.65 | $14.15 |
| Michigan | $10.56 | $10.33 |
| Minnesota | $11.13 | $10.85 (large) $8.85 (small) |
| Missouri | $13.75 | $12.30 |
| Montana | $10.55 | $10.30 |
| Nebraska | $13.50 | $12.00 |
| New Jersey | $15.49 (standard) $14.53 (small, seasonal) $13.40 (agricultural) $18.49 (long-term care) | $15.13 (standard) $13.73 (small, seasonal) $12.81 (agricultural) $18.13 (long-term care) |
| New York | $16.50 (NYC & Long Island) $15.50 (upstate) | $16.00 (NYC & Long Island) $15.00 (upstate) |
| Ohio | $10.70 | $10.45 |
| Rhode Island | $15.00 | $14.00 |
| South Dakota | $11.50 | $11.20 |
| Vermont | $14.01 | $13.67 |
| Virginia | $12.41 | $12.00 |
| Washington | $16.66 | $16.28 |
When it comes to the specific dollar amount, ten states and Washington, D.C. now have minimum wages at or above $15 per hour. Some states have different minimum wage requirements that depend on the employer’s size or industry, or the employee’s role.
Meanwhile, the federal minimum wage has not changed since 2009, when Congress set it at $7.25 for most employees and $2.13 for tipped workers. We’re currently living through the longest period without an increase in the federal minimum since President Franklin Delano Roosevelt signed legislation creating it more than 85 years ago.
If you work in a state with a higher minimum wage than the federal rate, you’re entitled to the higher amount. But five states—Alabama, Louisiana, Mississippi, South Carolina, and Tennessee—have no minimum wage law, so employees in those states are covered by federal law alone.
11 States Increased the Minimum Wage for Tipped Workers
Federal law and most states allow employers to pay a lower minimum wage to tipped workers, based on the assumption that tips will make up the difference. That mainly affects food and beverage employees like servers and bartenders, but it also covers other tipped occupations such as nail technicians, hotel housekeepers, and parking lot attendants. In seven states—Minnesota, Montana, Nevada, California, Alaska, Washington, and Oregon—employers must pay the same minimum wage to tipped and non-tipped employees.
Listed below are the states that raised the minimum wage for tipped employees, according to NELP’s tabulation.
Tipped Wage Increases by State
| State | 2025 Tipped Wage | 2024 Tipped Wage |
|---|---|---|
| Arizona | $11.70 | $11.35 |
| Colorado | $11.79 | $11.40 |
| Illinois | $9.00 | $8.40 |
| Maine | $7.33 | $7.08 |
| Michigan | $4.01 | $3.93 |
| Missouri | $6.88 | $6.15 |
| New Jersey | $5.62 | $5.26 |
| New York (Hospitality only) | $10.35-$13.75 depending on region & occupation | $10.00-$13.35 depending on region & occupation |
| Ohio | $5.35 | $5.05 |
| South Dakota | $5.75 | $5.60 |
| Vermont | $7.01 | $6.84 |
Outten & Golden LLP is committed to upholding your right to receive all the compensation you deserve for your work. If you think your employer might be paying you less than it’s supposed to, please reach out to us.
