It’s been 15 years since the last federal minimum wage increase in the United States, and the current rate of $7.25 per hour, which went into effect in 2009, has remained stagnant despite numerous proposals to raise it. While federal action remains on hold, many states have taken matters into their own hands by implementing higher minimum wages. As of 2025, more than 20 states will increase their minimum wage rates, benefiting millions of workers across the country. Here’s a breakdown of the scheduled increases by state.
States Raising the Minimum Wage in January 2025
This Article Includes
Several states will see their minimum wage rates increase on January 1, 2025. These states have either set automatic increases tied to inflation or cost of living, or have passed legislation mandating new minimum wage thresholds. Here’s the complete list of states raising their wages on the first day of the year:
- Alaska: from $11.73 to $13.00
- Arizona: from $14.35 to $14.70
- Colorado: from $14.42 to $14.81
- Connecticut: from $15.69 to $16.35
- Delaware: from $13.25 to $15.00
- Illinois: from $14.00 to $15.00
- Maine: from $14.15 to $14.65
- Michigan: from $10.30 to $10.56
- Missouri: from $12.30 to $13.75
- Montana: from $10.30 to $10.55
- Nebraska: from $12.00 to $13.50
- New Jersey: from $15.00 to $15.49
- New York (In New York City and Long Island / Westchester): from $16.00 to $16.50
- New York: from $15.00 to $15.50
- Ohio: from $10.45 to $10.70
- Oklahoma: from $7.25 to $9.00
- Rhode Island: from $14.00 to $15.00
- South Dakota: from $11.20 to $11.50
- Vermont: from $13.67 to $14.01
- Virginia: from $12.00 to $13.50
California’s Uncertainty: $16.50 or $18 per Hour?
California, known for having one of the highest minimum wages in the country, has a unique situation in 2025. The state’s minimum wage is set to rise to $16.50 under current law, reflecting a 3.18% increase based on the Consumer Price Index (CPI-W). However, a recent ballot measure could push the wage to $18 per hour for employers with 26 or more workers. The proposal was narrowly defeated by voters, with 50.8% voting against the increase.
As a result, unless further action is taken, California’s minimum wage will increase to $16.50 starting January 1, 2025. Smaller businesses with 25 or fewer employees will continue to be impacted by changes set under this law, but a delay in the wage increase may affect them in 2026.
Additional State-Wide Minimum Wage Changes in 2025
While many states will adjust their minimum wage rates on January 1, other states have scheduled increases for later in the year. These changes are often linked to inflation or legislative mandates. Here are the states making adjustments in 2025 outside of the January 1st window:
- Michigan: From $10.56 to $12.48 (effective July 1, 2025)
- Oregon: Increase set for July 2025 (exact amount pending)
- District of Columbia: Increase scheduled for July 2025 (exact amount pending)
- Florida: From $13.00 to $14.00 (effective September 30, 2025)
These increases reflect the growing push across the U.S. for workers to earn a living wage that keeps pace with inflation and the rising cost of living. Each state and jurisdiction has implemented its own strategies for determining how and when to raise the minimum wage.
Why These Changes Matter
The scheduled increases in 2025 come at a crucial time for millions of workers across the country. With the cost of living rising, particularly in urban centers, many workers have been struggling to keep up with expenses. A higher minimum wage helps ensure that workers can afford basic necessities like housing, healthcare, and food. These state-level increases demonstrate the power of local government to affect change where federal action has been slow or absent.
The patchwork nature of these increases, however, highlights the disparity in minimum wage laws across the U.S. Workers in states with higher minimum wages are better able to handle rising costs, while those in states with stagnant wages or lower increases continue to face challenges.
Looking Ahead: Federal Action or Continued State-by-State Solutions?
While the increases in 2025 are a step forward for many workers, the conversation around a federal minimum wage increase continues. Advocates for a higher federal minimum wage argue that national standards are needed to ensure fairness and equity. However, without federal action, states will continue to lead the way, offering a mix of automatic, inflation-based, or voter-approved increases.
As we move into 2025, more states will likely follow suit, pushing the envelope on how much workers should earn to maintain a reasonable standard of living. Only time will tell if Congress will pass a nationwide increase, but for now, workers in these 20+ states will see the fruits of state-level efforts to make sure that their paychecks reflect the realities of the modern economy.
Conclusion
2025 will be a year of significant change for many workers as minimum wages rise across the U.S. From California to Florida, states are stepping up to ensure that their workers are better compensated. As we continue to see the effects of inflation and rising living costs, these increases will be crucial in helping workers maintain financial stability. The trend of raising the minimum wage, however, highlights the growing need for a federal solution to wage disparity, something that may continue to be debated for years to come.