federal minimum wage

Just over half can cover costs for themselves and their families with what they’re bringing home from work.

By this time next year, more states will have a minimum wage of at least $15 an hour than those where workers receive the federal minimum wage of $7.25 an hour.

It’s the longest stretch of time Congress has gone without raising the federal minimum wage.

The federal floor is $7.25 an hour — but only around 1% of workers are paid that little. Several states and cities will hike their minimums July 1.

The highest state minimum wages as of Jan. 1, 2024 will be Washington state at $16.28 and California at $16. But is that really enough to live on?

“What gives me hope is something that seemed impossible in 2012 is now very possible,” Henry told Marketplace.

Will employers notice? Many are already raising wages for their workers because of the labor crunch.

A listener writes: “If you make the minimum wage $15/hour, it’s not enough in New York and it’s way too much in Peoria. Would it be possible to tie the minimum wage to the cost of living?”

Raising the minimum from $7.25 to $15 per hour is part of the American Rescue Act, now making its way through Congress.

This is a fraught time to tackle minimum wage increases. It would address long-term inequities but more businesses are in trouble now.