MILLIONS of Americans will see a major change to their paychecks as new legislation rolls out on Tuesday, impacting workers in over a dozen spots across the US.
The minimum wage increases will take effect in more than 15 cities and states as local governments work to better financially support their workforces.
Over one million workers across a number of states, counties, and cities will see a bump to their paychecks starting on Tuesday[/caption]
The federal baseline rate for minimum wage has stood at $7.25 per hour since 2009.
However, as the cost of living has crawled upwards over time, some states and cities have raised their own minimum wages through ballot measures, inflation adjustments, and laws.
Under a minimum wage increase being rolled out Tuesday, July 1, over one million American employees will see a much-needed boost to their paychecks.
In Alaska, Oregon, and Washington DC alone, over 800,000 Americans will benefit from the pay hikes, according to the Economic Policy Institute.
“These minimum wage increases will put more money in workers’ pockets, helping many of them and their families make ends meet,” EPI state economic analyst Sebastian Martinez Hickey wrote in a post.
“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.”
Workers in another dozen cities and counties, mostly in California, are also implementing minimum wage increases starting July 1, bringing the total number of impacted workers to over one million.
SEEING GREEN
In Alaska, the state is boosting the minimum wage by $1.09 to $13 per hour – an increase that was approved by voters via a ballot measure.
The increase will impact 19,400 residents – roughly 6.3% of the state’s workforce – and raise their annual paychecks by an average of $925, according to EPI estimates.
Over in Washington DC, workers will earn 45 cents more per hour, bringing the minimum wage to $17.95 an hour.
The hike is the result of an automatic inflation adjustment and will affect roughly 62,200 workers, or about 7.5% of the city’s workforce.
Thanks to the paycheck bump, employees in Washington DC will pull in $727 more per year on average.
Oregon’s pay increase will impact around 801,700 workers – or 9.4% of the state’s workforce – and increase their minimum wage by 35 cents to $15.05 per hour.
The result of an automatic inflation adjustment, the change will raise the average worker’s yearly income by around $420.
Minimum wage increases
Beginning on July 1, the following states, cities, and counties will raise their minimum wage:
- Alameda, California: The minimum wage will rise 46 cents to $17.46
- Berkeley, California: The minimum wage will rise 51 cents to $19.18
- Emeryville, California: The minimum wage will rise 54 cents to $19.90
- Fremont, California: The minimum wage will rise 45 cents to $17.75
- Los Angeles, California: The baseline wage will rise 59 cents to $17.87
- Los Angeles County, California: The minimum wage will rise 54 cents to $17.81
- Milpitas, California: The minimum wage will rise 50 cents to $18.20
- Pasadena, California: The minimum wage will rise 54 cents to $18.04
- San Francisco, California: The minimum wage will rise 51 cents to $19.18
- Santa Monica, California: The minimum wage will rise 54 cents to $17.81
- Chicago, Illinois: The minimum wage will rise 40 cents to $16.60
- Montgomery County, Maryland: The minimum wage will rise 50 cents to $17.65
- Alaska: The minimum wage will rise $1.09 to $13
- Washington DC: The minimum wage will rise 45 cents to $17.95
- Oregon: The minimum wage will rise 35 cents to $15.05
Minimum wage increases will also take effect in 12 cities and counties across the US beginning on Tuesday, which includes 10 localities in California.
In The Golden State, workers will see their hourly wages spike by 40 to 59 cents per hour, bringing the new hourly rates from around $17.46 in Alameda to $19.90 in Emeryville.
Cities such as Berkeley and San Francisco will bump up their minimum wage to $19.18 per hour, Los Angeles and nearby areas will increase pay to just under $18 an hour.
Outside of California, workers in Chicago, Illinois, will receive 40 cents more per hour, bringing the minimum wage in the city to $16.60 per hour.
Over in Maryland’s Montgomery County, residents will see the minimum wage hike by 50 cents to $17.65 per hour.
Around 58% of Americans benefiting from pay bumps are women, according to EPI estimates.
Black and Hispanic workers will also disproportionately gain from the increases.
WHY IS THERE A MINIMUM WAGE?
The country first enacted a federal minimum wage in 1938 under the Fair Labor Standards Act during the Great Depression in an effort to stabilize the economy and protecting the working class.
The first federal minimum wage in the US was set at 25 cents per hour, which has since risen to $7.25 an hour.
Minimum wage laws exist to ensure a basic standard of living for workers, preventing employees from exploiting them with extremely low pay.
These laws also exist to help stimulate the economy, increasing consumer spending by boosting the paychecks of low-wage earners.
There are various proposals and advocacy efforts underway to raise the federal minimum wage, with senators from Missouri and Vermont introducing a bipartisan bill in June to increase it to $15 per hour.
Minimum wage has been a point of contention for years, especially in service-based industries such as dining.
As the cost of living and inflation hit both restaurants and workers hard, many establishments have been rolling out new fees.
Diners, for example, vowed to boycott a restaurant after discovering a mystery “living wage fee” on the receipt – it’s 18% added to every bill.
Meanwhile, another customer was left “bugged” after a popular restaurant chain mysteriously added two extra fees.
