Employees in additional than 20 states, cities and counties to get a wage increase on July 1

Employees in additional than 20 states, cities and counties will get a wage increase on July 1 when increased minimal wages kick in — a part of a nationwide push to make sure the nation’s lowest-paid employees are maintaining with the rising price of dwelling.

Among the many states are Connecticut, Nevada and Oregon, together with the District of Columbia, which collectively have virtually 6 million employees. Moreover, minimal wages in a dozen California cities, together with Los Angeles and San Francisco, will enhance on July 1, in addition to in Chicago and St. Paul, Minnesota. A couple of counties are additionally boosting their minimal wages, together with Cook dinner County in Illinois and Montgomery County in Maryland.

Whereas the lowest-paid employees in these states, cities and counties will likely be instantly impacted, the upper baseline wage units an earnings flooring for many workers in these states, consultants notice. 

The hikes come because the federal minimal wage nears the thirteenth anniversary of its final enhance, marking the longest interval with out a rise because the baseline wage was created in 1938. There are nonetheless 20 states, principally within the South and Midwest, the place the federal minimal wage of $7.25 an hour serves because the wage flooring. That price is under the poverty line of $8.38 for households of two or extra, the place one one particular person is working.

In the meantime, 30 states and the District of Columbia have adopted wages above the federal baseline wage, with some states tying their will increase to the price of dwelling. That ought to be a extra equitable approach to make sure that employees are maintaining with inflation, mentioned Holly Sklar, CEO of Enterprise for a Truthful Minimal Wage, which advocates for a better minimal wage.

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“When you will have indexing to the price of dwelling you might be working in place. It isn’t like, ‘I obtained an enormous pay increase,’ nevertheless it’s permitting you to not fall behind,” Sklar informed CBS MoneyWatch. “It is actually important.”

The federal minimal wage “was designed to maintain folks out of poverty, and now it is preserving folks in poverty in a dramatic approach” within the states the place the federal minimal wage stays the legislation, she added.

First increase since 2009

The federal minimal wage was final elevated on July 24, 2009, when it rose to $7.25 an hour. If that baseline wage had risen together with the nation’s productiveness progress since 1968, it might have reached virtually $21.50 an hour in 2020, in keeping with an evaluation from the Middle for Financial and Coverage Analysis. 

To make certain, paying a better wage can influence a enterprise’s profitability, however it could actually additionally assist retain employees and enhance morale, which may result in higher customer support and gross sales, famous Gina Schaefer, the proprietor of A Few Cool {Hardware} Shops, which runs 13 Ace {Hardware} shops. Seven of these places are in D.C., the place Schaefer will begin paying a minimal wage of $16.10 an hour on Friday. 

“The extra money my teammates make, the extra money they take into the group,” mentioned Schaefer, who’s a member of of Enterprise for a Truthful Minimal Wage. “Not solely is it much less of a drain on social providers, they’ve extra money to spend within the native communities.”

Schaefer mentioned most of her employees earn above the minimal wage, however she hires some new workers — equivalent to teenagers of their first job — on the baseline wage. A rise “makes a huge impact on the profitability of the corporate,” she mentioned. However, she added, “We’re completely in favor of it.”


The baseline wage in Connecticut will enhance from $13 to $14 on Friday, and employees will see one other increase — to $15 an hour — on June 1, 2023. The state has 1.9 million civilian employees, in keeping with authorities knowledge.

That increase stems from a legislation that went into impact three years in the past. After the June 2023 enhance, annual changes will likely be made based mostly on the Employment Price Index beginning on January 1, 2024. 


Nevada’s minimal wage will enhance from $9.75 an hour to $10.50 an hour for employees with out well being protection, whereas workers with medical insurance will see their baseline pay enhance from $8.75 an hour to $9.50 an hour. 

Will increase will proceed in 75-cent bumps till the baseline wage reaches $12 an hour ($11 for employees with well being care protection) in 2024. 

Nevada has a workforce of about 1.5 million folks.


Oregon’s minimal wage will enhance from $12.75 an hour to $13.50 on Friday. The state has 2.2 million employees. 

Beneath state legislation, nonetheless, there are separate baseline charges for Portland and non-urban counties. Employees in Portland will see a lift from $14 to $14.75 an hour. The wage in non-urban counties will enhance from $12 to $12.50 an hour. 

Beginning in 2023, the state’s baseline wage will likely be adjusted yearly based mostly on the Client Value Index, which measures the rise in costs throughout a basket of products and providers. 

Washington, D.C.

Washington, D.C. will increase its minimal wage from $15.20 an hour to $16.10 an hour on Friday.

Its minimal wage is listed to the 12-month share change within the Client Value Index for All City Shoppers (CPI-U) for the D.C. area, with the adjustments carried out on July 1 of every 12 months. 

There are virtually 400,000 employees in D.C. 

Cities and counties boosting minimal wage:

In California, the next cities and counties are growing their baseline wages on Friday, in keeping with the legislation agency Fisher Phillips.

  • Alameda: $15.75 an hour
  • Berkeley: $16.99 an hour
  • Emeryville: $17.48 an hour
  • Fremont: $16.00 an hour
  • Lengthy Seashore: $16.73/hour for lodge employees; $16.55 for concessionaire employees
  • Los Angeles Metropolis: $16.04 for all employers
  • Los Angeles County: $15.96 an hour
  • Malibu: $15.96 an hour
  • Milpitas: $16.40 an hour
  • Pasadena: $16.11 an hour
  • San Francisco Metropolis and County: $16.99 an hour
  • Santa Monica: $15.96 an hour
  • West Hollywood: $16.50 an hour for employers with greater than 50 workers, or $16.00 an hour for employers with fewer than 50 workers. Resort employees will earn $18.35 an hour.

Moreover, these cities and counties are boosting their minimal wage on Friday:

  • St. Paul, Minnesota: Companies with greater than 10,000 workers pays $15 an hour, up from $12.50 an hour. Employers with between 101 to 10,000 employees pays $13.50 an hour, up from $12.50; these with 6 to 100 employees pays $12 an hour, up from $11; and people with 5 or fewer employees pays $10.75, up from $10.
  • Minneapolis will enhance its baseline wage to $13.50 an hour, from $12.50 an hour, for companies with 100 or fewer employees. Companies with greater than 100 employees will see their minimal wage enhance to $15 from $14.25 an hour.
  • Montgomery County, Maryland: Employers with 51 or extra employees pays $15.65 an hour, up from $15 an hour beforehand. These with 11 to 50 employees pays $14.50, up from $14 an hour; and people with 10 employees or much less pays $14 an hour, up from $13.50.
  • Cook dinner County, Illinois (which incorporates Chicago in addition to different cities and townships like Evanston and Elk Grove): The minimal wage will rise to $13 an hour from $12. 
  • Chicago: Companies with 21 employees or extra pays $15.40, up from $15.00. These with 4 to twenty employees pays $14.50 an hour, up from $14. 

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