By The newspaper
Dec 28, 2023, 17:39 PM EST
As the new year approaches, nearly 10 million workers in 22 states can expect a significant increase in their pay.
The Economic Policy Institute reported that raising minimum wages will generate an additional $7 billion in annual wages for these workers, marking a substantial economic shift and a step toward solving inflation-related struggles.
The states leading the wage increase movement
Starting January 1, 2024, states like California, New York and Washington will increase their base pay to at least $16 an hour, putting them at the forefront of the wage increase movement.
This increase is especially notable in the context of the federal minimum wage, which has stagnated at $7.25 an hour since 2009, despite a more than 40% increase in inflation. Twelve of the states that enacted these increases have tied their base pay to inflation, ensuring an annual adjustment that helps preserve workers’ purchasing power.
Wage increases will disproportionately benefit women and people of color. About 60% of those who will benefit from the mandatory wage increase are women, while Hispanic and African American workers will also see significant impacts.
This change reflects not only economic adjustment, but a move towards greater equality and support for those who are often most vulnerable to exploitation. Beyond the immediate financial improvement, these changes are a victory for advocates pushing for fair and living wages for all workers.
States that will increase their minimum wage on January 1, 2024 and their new salary
- Alaska: $11.73
- Arizona: $14.35
- California: $16
- Colorado: $14.42
- Connecticut: $15.69
- Delaware: $13.25
- Hawaii: $14
- Illinois: $14
- Maine: $14.15
- Maryland: $15
- Michigan: $10.33
- Minnesota: $10.85
- Missouri: $12.30
- Mountain: $10.30
- Nevada: $12
- New Jersey: $15.13
- New York: $16
- Ohio: $10.45
- Rhode Island: $14
- South Dakota: $11.20
- Vermont: $13.67
- Washington: $16.28 dollars
Broader implications and future increases
While many employers have already increased their starting wages due to a tight labor market, these state-mandated increases are crucial as they ensure sustained wage gains for workers.
Starting January 1, workers in six states will enjoy a base wage that is more than double the federal minimum wage. However, the fight for fair wages is not over: 20 states, mostly in the South and Midwest, still adhere to the federal limit of $7.25.
Looking ahead, states like Florida, Nevada and Oregon will also raise their minimum wages later in 2024, continuing the trend of state-led efforts to financially support workers.
The start of 2024 marks a significant moment for workers’ rights and economic policy, as all 22 states implement minimum wage increases.
This measure, which is expected to benefit nearly 10 million workers and inject billions into the economy, is a response to the current fight against inflation and the stagnation of the federal minimum wage.
As states take the lead in ensuring a fair wage for their workers, the nation watches and waits to see the broader impact of these increases, both economically and socially.
While there is still a long way to go, these increases are a step in the right direction and promise a slightly brighter and more equitable new year for millions of Americans.
Keep reading:
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