As scheduled, a new minimum wage increase will go into effect today for large, small, and micro businesses in the United States. The Minimum Wage Ordinance establishes the lowest hourly rate for work performed in the country. The minimum wage regulations vary depending on the size of the business. From now on, firms of all sizes must pay their employees a minimum wage of $15 per hour by 2027. This modification is a reflection of the continuous efforts to keep workers’ purchasing power intact in the face of inflation, guaranteeing that earnings keep pace with the rise in living expenses. Learn more about the five states and more than 10 US cities that will enjoy minimum wage increases starting yesterday.
California, Illinois, Minnesota, Washington, and Maryland have announced that the minimum wage per hour would be increased beginning Monday, July 1, bringing much-needed relief for workers in several places. Californians, in particular, will benefit greatly from the wage boost. According to data from the Bureau of Economic Analysis (BEA), California has the highest housing, rent, and food costs in the country. This increase in the minimum wage will help reduce the economic constraints on many state residents.
Minimum wage increase per city in the United States
Beginning on Monday, minimum wage workers in Oregon, Nevada, and Washington, D.C., as well as in a few other American towns and counties, will receive a pay increase. The minimum wage in Washington, D.C., is now $17.50 per hour, a 50-cent rise. It is $10.25 more than the federal minimum wage of $7.25 per hour and greater than any state minimum wage in the country. Every year on July 1st, the minimum wage in Washington, D.C., is raised under the rate of inflation, which is often determined by comparing the consumer price index (CPI) of the U.S. Bureau of Labor Statistics.
It is important to highlight that the federal minimum wage, which has remained stagnant since 2009 despite soaring costs for goods and services, is less than the minimum wage imposed by the majority of states. Nevada’s minimum wage has increased by $1.75 to $12. The practice of paying wages that were $1 below the state requirement for employers that offered health insurance terminated on July 1st. Similar to D.C., Oregon bases its minimum wage on the rate of inflation. However, minimum-wage earners’ earnings differ by area. In all three areas, the minimum wage rose by fifty cents or around three percent, as follows:
- Southern, Central, and Eastern Oregon’s non-urban rural areas: $13.70.
- Oregon coast counties and the Willamette Valley: $14.70.
- Portland: $15.95.
California minimum wage raise
The following California cities and counties are projected to increase their minimum wage beginning July 1, 2024, above the state level:
- Alameda: US$ 17 per hour
- Berkeley: $18.67 per hour
- Emeryville: $19.36 per hour
- Fremont: $17.30 per hour
- Los Angeles: $17.28 per hour
- Los Angeles County: $17.17 per hour
- Milpitas: $17.70 per hour
- Pasadena: $17.50 per hour
- San Francisco: $18.67 per hour
- Santa Monica: $17.27 per hour.
Washington minimum wage raise
- Renton: $20.29 for companies with more than 500 employees; $18.29 for businesses in the medium-sized category or those generating more than $2 million in revenue annually.
- Tukwila: $19.29 for small businesses and $20.29 for big businesses.
Oregon minimum wage raise
- Portland: $15.95.
- Rural Oregon counties: $13.70.
- Non-rural Oregon counties: $14.70.
Illinois minimum wage raise
- Chicago: $16.20 only for employers with more than four workers.
- Cook County: $14.05.
Minnesota minimum wage raise
- Minneapolis: $15.57.
- St. Paul: U$S15.57 for companies considered large and U$S14 for small employers.
Maryland minimum wage raise
- Montgomery County: $17.15 for businesses considered large; $15.50 for medium-sized employers; and $15 for small employers.
