Several states to increase minimum wage in 2025. When was the last time Kentucky did?
While minimum wage in Kentucky hasn't changed in almost 16 years, many states are seeing minimum wage increases this year. Here's where.
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.
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
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
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 incrementally increase wages for tipped workers.
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.
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.
Minimum wage in Indiana is $7.25 an hour and has been since 2009, according to the Department of Labor, when the federal minimum wage was increased from $6.55.
Employers must pay tipped employees at least $2.13 per hour if the employer claims a tip credit and if the employee's tips combined with the hourly wage do not equal the minimum wage, the employer must make up the difference.
According to MIT's Living Wage Calculator in Jefferson County, a living wage (for full-time employment) for one adult without children is $21.55 an hour, which is almost three times the current state minimum wage.
One child increases that living wage to $36.47 an hour, two children to $45.91 an hour and three children to $58.41 an hour, which is almost six, seven and nearly nine times the state minimum wage of $7.25.
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.
Katie Wiseman covers trending news for IndyStar and Midwest Connect. Contact her at klwiseman@gannett.com. Follow her on Bluesky @katiewiseman
This article originally appeared on Louisville Courier Journal: What is minimum wage in Kentucky? What is minimum wage in other states?
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