Minimum wage increases take effect in 21 states and 48 cities in 2025

Starting January 1, 2025, minimum wage increases will affect 21 states and 48 cities and counties, benefiting an estimated 9.2 million workers. These changes will raise total pay by $5.7 billion, with California's wage increasing from $16 to $16.50. Five states are raising their minimum wage through existing laws, while Nebraska and Montana are implementing changes from voter-approved measures. By 2027, 19 states and Washington, D.C., will have a minimum wage of at least $15. The Economic Policy Institute reports that women, Black, and Hispanic workers will be the most impacted by these increases. However, many argue that the new minimum wages may still fall short of meeting rising living costs.