What should be done regarding the minimum wage in the United States has been the subject of acrimonious debate for decades. It has remained at $7.25 per hour since 2009, an unlivable salary for Americans in an era of extremely high inflation.
According to the Economic Policy Institute (EPI), the purchasing power of minimum wage workers is equivalent to that of workers in the 1950s.
Lowest Minimum Wage In US
President Joe Biden campaigned for a $15 minimum wage by 2020, but little progress has been made on the issue. While the federal minimum wage has stayed unchanged since 2014, nearly two dozen states and the District of Columbia have increased their minimum wage.
There are now just over a half-dozen states where the minimum hourly wage is greater than $13.00. This number, including the District of Columbia, will reach at least 14 in 2023 due to indexing and projected increases. The majority of these are located on the East and West Coasts.
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In 2023, however, none of the states with the lowest minimum pay of $7.25 will adjust their minimum wage rates.
- Alabama
- Georgia
- Idaho
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Mississippi
- New Hampshire
- North Carolina
- North Dakota
- Oklahoma
- South Carolina
- Tennessee
- Texas
- Utah
- Wisconsin
- Wyoming
Five states lack a state minimum wage and use the federal minimum wage instead. Alabama, Louisiana, Mississippi, and South Carolina are the names of these five states.
In January, a dozen states will raise their minimum wages. Three additional states and the District of Columbia will follow suit later in 2023.
Three states will raise their minimum wage to at least $15, joining California, the District of Columbia, and a few municipalities that have previously enacted this policy. The federal minimum wage has been $7.25 per hour since the summer of 2009.
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Minimum Wage Increase
While the federal minimum wage has stayed unchanged since 2014, nearly two dozen states and the District of Columbia have increased their minimum wage. In addition, 46 cities and towns around the US require businesses to pay their employees more than the federal minimum wage.
Nebraska, Nevada, and the District of Columbia have all passed new laws recently. Voters in Nebraska approved a ballot issue in November to increase the minimum wage to $15 per hour by 2026. The state of Nevada will boost its minimum wage to $12 for all workers, regardless of whether or not they have health insurance, thus removing its two-tier structure.
The law in Washington, D.C. will increase the minimum pay for tipped workers to $16.10 per hour by 2027, up from the current minimum wage of $5.35 per hour, and eliminate the tip credit.
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