Higher Wages Bring New Year Cheer to Low-Wage Workers

As 2023 rolled in, low-wage workers in 23 states across the United States welcomed bigger paychecks thanks to widespread increases in the minimum wage. These pay raises, ranging from 23 cents an hour in Michigan to $1.50 an hour in Nebraska, are set to benefit 8.4 million workers, according to a recent estimate by the Economic Policy Institute, a progressive think tank.

Despite these positive changes, many states still have minimum wages that are effectively no higher than the federal minimum of $7.25 an hour. This could be due to either having no minimum wage or having one set at or below the federal minimum. The map below illustrates where minimum wages currently stand and the adjustments made in 2023.

For years, there have been calls from progressive politicians and organizations to raise the federal minimum wage above its current level. Advocates argue that someone working 40 hours a week at the minimum wage would only earn $15,080 a year, which is well below the federal poverty level of $27,750 for a family of four. An attempt to raise the wage in 2021 as part of a pandemic relief bill was unsuccessful in the narrowly-divided Senate.

However, many states have taken matters into their own hands. Along with the statewide increases, 27 cities and counties across the country are also raising their minimum wages, as calculated by the EPI. Some of the wage increases seen this year were a result of pandemic-era legislation, while others occurred due to automatic adjustments from older laws.

In addition to the increases that came into effect at the start of the year, Connecticut, Washington, D.C., Florida, Nevada, and Oregon are scheduled to raise their minimum wages later in the year. If you have any questions, comments, or stories to share, feel free to reach out to Diccon at dhyatt@thebalance.com.