California among states due for minimum wage hikes in 2025; these workers to benefit the most
While workers across many jurisdictions have already seen minimum wage increases this year, some Americans are still due for a bump in 2025, including many workers in California.
Jan. 1, 2025 marked a popular day for pay increases across the U.S., as 21 states and 48 cities raised their minimum wage rates. Meanwhile, planned hikes are in place for California and at least three other states and more than a dozen cities through the end of 2025, according to a report by the worker advocacy group National Employment Law Project.
At the federal level, Sen. Bernie Sanders, I-Vt., and Rep. Bobby Scott, D-Va. introduced on April 8 the Raise the Wage Act, proposing to raise the federal minimum wage from $7.25 to $17 per hour and gradually end the "subminimum" wage for tipped workers. However, it faces a Republican trifecta across Congress and the White House.
Here is what to know about minimum wage increases going into effect in California and across the country in 2025.
According to data compiled by the National Employment Law Project, the following states have enacted minimum wage increases after the New Year or are set for increases later this year:
Michigan: $12.48 per hour became the new minimum wage as of Feb. 21
Alaska: $13.00 will be the new minimum wage as of July 1
California: $18.63-$24 will be the new minimum wage for healthcare, depending on the type of facility, as of July 1
Oregon: $15.05 will be the new standard minimum wage as of July 1. The minimum rate is $16.30 for the Portland metro area and $14.05 for nonurban communities.
Florida: Minimum wage will increase to $14 and $10.98 for tipped employees on Sept. 30
Here are some of the cities and jurisdictions seeing minimum wage hikes this year, according to data compiled by the National Employment Law Project:
Santa Fe, New Mexico: Minimum wage increased to $15 per hour, effective March 1
Los Angeles County, California: Minimum wage increases to $17.81, effective July 1
San Francisco: Minimum wage increases to $19.18, effective July 1
Washington, D.C.: Minimum wage increases to $17.95, effective July 1
St. Paul, Minnesota: Small and micro businesses will see an increase to $15 and $13.25, respectively, effective July 1
Virginia: Gov. Glenn Youngkin vetoed a bill in March that would have raised the minimum wage to $13.50 per hour by Jan. 1, 2026 and $15 per hour on Jan. 1, 2027.
Tennessee: A 2025 bill to raise the minimum wage to $20 per hour has stalled, reported the Tennessean, part of the USA TODAY Network.
North Carolina: The wage floor in North Carolina is set by the federal rate, $7.25. A bill proposing a $22 per hour minimum wage was referred to a committee on March 11, while a separate measure to increase the wage annually until it reached $18 per hour in 2030 was also referred to a committee.
Michigan: Gov. Gretchen Whitmer signed a bill in February that will increase the minimum wage to $15 per hour by 2027. It will also increase wages for tipped workers incrementally.
Florida: While Florida's minimum wage gets increased every year due to a prior law, bills under consideration in the state legislature, SB 676 and HB 541, would carve out exemptions for apprenticeships, internships or work-study programs to be able to work for less, according to the Daytona Beach News-Journal, part of the USA TODAY Network.
Minimum wage increases throughout the entirety of 2025 will directly impact 3 million workers earning minimum wage, and can also help bump up wages for another 6.2 million workers as companies adjust to the new minimum, USA TODAY previously reported.
Wage jumps in recent years have helped some Americans try to keep up with inflation, which hit a 40-year high of 9.1% in mid-2022 before falling to 2.4% in March. However, some of the trade policies pursued by the Trump administration have experts concerned that inflation rates could rise again.
Economists: Trump's sweeping tariffs could mean a US recession, much higher inflation
Advocates have pointed out that some minimum wages are below what they call the "living wage" threshold for the cost of living in the area. Others argue that raising the minimum wage is associated with higher prices and job loss.
Contributing: Paul Davidson, Diana Leyva, C. A. Bridges, USA TODAY Network
Kinsey Crowley is a trending news reporter at USA TODAY. Reach her at kcrowley@gannett.com. Follow her on X and TikTok @kinseycrowley or Bluesky at @kinseycrowley.bsky.social.
This article originally appeared on USA TODAY: Minimum wage increases 2025: Changes coming in California, SF, LA
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