The federal minimum wage will increase from $6.55 per hour to $7.25 per hour on Friday, July 24. The new minimum wage is the last of three scheduled increases that started under the Bush administration.
The Department of Labor says that a family with a full-time minimum wage earner would see its monthly income increase by about $120.
"This well-deserved increase will help workers better provide for their families in the face of today's economic challenges,” says Secretary of Labor Hilda L. Solis. “I am especially pleased that the change will benefit working women, who make up two-thirds of minimum wage earners."
A vast majority of states have set their own minimum wages, most of which are below the new federal rate of $7.25 per hour. Some states have approved minimum wages that increase in lock-step with the federal rate.In general, employers in 30 states will see the minimum wage they are required to pay increase on Friday, July 24. Those states are:
- Alabama
- Alaska
- Arkansas
- Delaware
- Florida
- Georgia
- Idaho
- Indiana
- Kansas
- Louisiana
- Maryland
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- New Jersey
- New York
- North Carolina
- North Dakota
- Oklahoma
- Pennsylvania
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Virginia
- Wisconsin (state law is not tied to federal law, so employers covered by state, but not federal law, will not be required to pay federal minimum wage.)
- Wyoming (state law is not tied to federal law, so employers covered by state, but not federal law, will not be required to pay federal minimum wage.)
In the District of Columbia, the minimum wage will increase to $8.25 per hour July 24, because the district's minimum wage automatically increases to $1 above the federal rate.
In Nevada, the increase in the federal rate on July 24 will require employers that provide health insurance to pay their employees $7.25 per hour. Employers that don't offer qualified health insurance must pay $7.55 per hour.
This year's increase in the federal minimum wage will generally have no effect on employers in 19 states because they currently have minimum wages at or above $7.25 per hour. Those states are:
- Arizona (the state minimum wage is $7.25 and is indexed to inflation)
- California (the state minimum wage is $8.00)
- Colorado (the minimum wage is $7.28 and is indexed to inflation)
- Connecticut (the state minimum wage is $8.00 ($8.25 on 1/1/10))
- Hawaii (the state minimum wage is $7.25)
- Illinois (the state minimum wage is $8.00 ($8.25 effective 7/1/10))
- Iowa (the state minimum wag is $7.25)
- Kentucky (the state minimum wage increased to $7.25 on July 1)
- Maine (the state minimum wage is $7.25 ($7.50 on 10/1/09))
- Massachusetts (the state minimum wage is $8.00)
- Michigan (the state minimum wage is $7.40)
- New Hampshire (the state minimum wage is $7.25)
- New Mexico (the state minimum wage is $7.50)
- Ohio (the state minimum wage is $7.30 and is indexed to inflation)
- Oregon (the state minimum wage is $8.40 and is indexed to inflation)
- Rhode Island (the state minimum wage is $7.40)
- Vermont (the state minimum wage is $8.06 and is indexed to inflation)
- Washington (the state minimum wage is $8.55 and is indexed to inflation)
- West Virginia (the state minimum wage is $7.25)