Minimum Wage Tracker Economic Policy Institute

Every year, our global community comes together to fight injustice and support people whose human rights are under threat. This is a textbook example of how big brands often leverage their power and influence over regional suppliers to dictate costs, rather than acknowledging the https://www.bookstime.com/articles/incremental-cost true cost of the labour behind their products. West noted that more than 200 restaurants closed in Denver last year.

• This information often may be found at the websites maintained by State labor departments.
• There is a federal minimum wage, but many states and localities set a higher wage.
• The federal minimum wage in the United States is $7.25 per hour as of 2025 unless the worker falls into a category that’s specifically exempted from the Fair Labor Standards Act (FLSA).
• Inflation and price increases after that point caused the real earnings of minimum wage workers to fall as productivity increased.
• Your state may also have different minimum wages for employees who receive tips.

Informal minimum wages

The prominent academics consulted by the B-READY minimum wage around the us team, as well as the literature, consider the minimum-to-median wage ratio as the best measure to assesses the appropriateness of the minimum wage. However, data on median wages are scarce and not annually updated, therefore the team used GDP per capita to establish a minimum wage-to-GDP per capita ratio. The ratio should be carefully balanced, as setting it too high or too low can have negative consequences. If the minimum wage is set too high, it may become unaffordable for employers, leading to labor market rigidities and discouraging hiring, including in the formal sector, which increases informality, especially among vulnerable groups. On the other hand, if the ratio is set too low, it could contribute to increased poverty, and inequality, coupled with lower productivity; thereby, subdued economic growth.

Basic income

The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act unless the State wage rate is higher than the federal rate. Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour. 4 A Montana business not covered by the federal Fair Labor Standards Act whose gross annual sales are $110,000 or less may pay $4.00 per hour. “The January 1 increases show that the minimum wage continues to be a powerful tool for combating racial and gender wage disparities, supporting working families, and reducing poverty,” EPI said in its report. Minimum-wage workers in 21 states will see a bigger paycheck come the new year. They’re among the many thousands of laws changing as a new year begins.

Davos: Rich and powerful must uphold their responsibility to safeguard humanity

Mariam points to Boulder for example, which has one of the highest minimums in the state, and also an extremely high cost of living. The B-READY project offers a new approach to evaluating the business environment by balancing employer challenges with worker well-being. It provides policymakers data and insights to create labor policies trial balance that enhance firm productivity while ensuring workers’ protection and inclusivity.Sign up to receive B-READY’s newsletter with the most recent news about global business environment. Residential workers (“live-in workers”) receive premium pay for hours worked over 44 in a payroll week. The New York minimum wage equals the federal minimum wage when set below the federal rate.

What is the federal minimum wage?

If the federal and local government minimum wages are different, the higher wage rate applies. The political and social narratives around minimum wages vary from country to country. But in almost every context, the debate has been dominated by the interests of the most wealthy and powerful in society. For decades, those in favour of keeping wages low have argued that stronger economic growth, often through the success of businesses is  ultimately beneficial to the rights and livelihoods of working people. Low-wage laborers in the United States can be exempt from the minimum wage if a sizable portion of their income is derived from tips.

• Those wage increases will impact an estimated 9.2 million workers and raise pay by a total of $5.7 billion, according to the Economic Policy Institute, a think tank that publishes economic research and examined the expected 2025 wage increases.
• Meanwhile the federal minimum wage of $7.25 has not increased in 15 years and the spending power of one dollar is not what it used to be — putting workers in a tough spot as prices for groceries and housing have risen over time.
• The first national minimum wage was enacted by New Zealand in 1894, followed by the United Kingdom in 1909.
• When a government is specific about the lowest amount a worker must be paid, this often becomes the highest amount workers in some industries will ever make, without excessive overtime.
• The minimum wage in Colorado is increasing by 39 cents an hour, starting January 1, 2025.