In 2024, 25 U.S. states will increase their minimum wage, reports USA Today. Additionally, five states are considering abolishing the two-tiered minimum wage system that allows tip-earning workers to make less than the minimum wage.
The new minimum wages for 22 states went into effect at the beginning of the year; Oregon, Nevada, and Florida will implement the new minimums throughout the year.
Twenty states have no plans to change their minimum wage this year from $7.25 per hour.
As of today, thirty states and Washington D.C. have minimum wages above the federal minimum of $7.25: D.C. has the highest, at $17 per hour, followed by Washington state at $16.28 per hour, and California and New York at $16 per hour.
The minimum wage for tip earners, however, is often below that of the federal minimum wage. This practice often affects restaurant and nightlife workers. Only seven states currently prevent the ability for retailers to pay less than the minimum wage for tipped workers, however, five states are considering requiring full minimum wage for these workers this year, reports NBC News.
Ballot measures are pending in Michigan, Arizona, Ohio, and Massachusetts, and a bill is being reintroduced in Connecticut to eliminate the two-tiered pay system for tip-earning hourly workers. These measures would mean that employers are required to make up the difference when tips fail to meet the $7.25 minimum.
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