Rise in Minimum Wage Scheduled in 15 Locations Nationwide, Effective July. Locations Detailed.
Revamped and Restructured Article:
Minimum Wage Hikes Across the US
Got some extra cash coming your way? That's what hundreds of thousands of workers across numerous cities and states will be feeling this July. Here's the lowdown on the minimum wage hikes taking effect starting July 1.
First on the roster, around 800,000 workers in two states – Alaska and Oregon, as well as Washington, D.C. – are set to experience a pay hike, according to the Economic Policy Institute (EPI), a well-known left-leaning economic think tank. But it's not just those states that are seeing an increase – a bunch of cities and counties will also be upping their minimum wage rates next month.
It's been a while since the federal minimum wage has budged, with the baseline rate still stuck at $7.25 an hour since 2009. With the cost of living steadily rising over the years, some states and municipalities have opted to boost their minimum wages through ballot measures, inflation adjustments, and legislation.
The minimum wage increases will put more money in workers' pockets, helping many of them and their families navigate their expenses, as the state economic analyst at EPI, Sebastian Martinez Hickey, explains. The average increase in annual wages for a full-time, year-round worker resulting from these minimum wage hikes ranges from $420 in Oregon to $925 in Alaska.
Interestingly, around 58% of the workers who will receive pay hikes are women, while Black and Hispanic workers will also disproportionately benefit. Unfortunately, there's no explicit clarification on whether this trend is consistent across all the cities and states experiencing wage increases.
Meanwhile, while the federal minimum wage remains stagnant, there have been repeated attempts to boost it, with the latest coming from Missouri-based Senator Josh Hawley, a Republican, who recently introduced legislation to raise the national baseline wage to $15 per hour. He was joined by Vermont Democratic Sen. Peter Welch as a co-sponsor.
The Track Record in July
So, let's delve into the specifics. Alaska, D.C., and Oregon won't be the only ones dishing out raises this July. In fact, 12 cities and counties across California, Illinois, and Maryland will also hand out pay increases. However, as of now, the data only confirms increases for California-based cities.
Alameda, Berkeley, Emeryville, Fremont, Los Angeles City, Los Angeles County (unincorporated areas), Milpitas, Pasadena, San Francisco, Santa Monica, and Malibu (with the exception of Malibu, where the minimum wage increase has been suspended for a year due to business support post Palisades Fire).
Chicago, Illinois, and Montgomery County, Maryland, are yet to confirm or announce their minimum wage increases for July.
Aside from these cities, there are industry-specific wage increases taking effect in some California cities:- Los Angeles City: $22.50 per hour for hotel and airport employees- Santa Monica: $22.50 per hour for hotel employees and employees of businesses operating on hotel property- West Hollywood: $20.22 per hour for hotel employees
If the details for the wage increases in Illinois and Maryland surface, we'll be sure to update you!
Until then, keep that change coming, folks! 🎉🎉
MoneyWatch Reporter:Megan Cerullo is a New York-based reporter for our MoneyWatch, covering small business, workplace, health care, consumer spending, and personal finance topics. She frequently appears on our News 24/7 to discuss her reporting.
Enrichment Notes:- The list of cities and counties increasing their minimum wages in July 2023 is limited to multiple California cities and counties, with no confirmed increases identified for Illinois or Maryland during that period.- There are also industry-specific wage increases taking effect in July 2023 in some California cities.- Malibu is an exception where the minimum wage increase scheduled for July 1 was suspended for one year, so the minimum wage remains at $17.27 per hour due to support for businesses affected by the Palisades Fire.
- The revamped report reveals that numerous cities and states, such as California, Illinois, and Maryland, will increase their minimum wages in July, next to states like Alaska, Oregon, and Washington D.C.
- The enhancements in minimum wages are not exclusive to service workers, as sectors like hotels and businesses operating on hotel property in cities like Santa Monica will also see increased pay rates.
- The Economic Policy Institute (EPI) estimates that the average annual wage for a full-time, year-round worker will increase substantially due to these wage hikes, ranging from $420 in Oregon to $925 in Alaska.
- Remarkably, women, along with Black and Hispanic workers, will make up around 58% of the workforce that benefits from the minimum wage hikes, although data on the distribution of these demographics across all the impacted cities and states is not yet explicit.
