Workers in Alaska, Oregon, and Washington, DC will be entitled to a higher minimum wage starting on July 1.
Alaska’s minimum wage will increase to $13 an hour, from $11.91, while Washington, DC’s will rise to $17.95 per hour, from $17.50.
Oregon’s minimum wage differs by region, so workers in the Portland metro area must earn at least $16.30 an hour, up from $15.95, by July 1. Those in non-urban counties will be entitled to $14.05 an hour, up from $13.70, while workers in all other regions will see the minimum wage go up to $15.05, from $14.70.
New minimum wage rates will also take effect in a host of cities and counties starting July 1, including Los Angeles ($17.87), Chicago ($16.60), and Montgomery County, Maryland (at least $15.50), which includes many DC suburbs and is the state’s largest county.
Wage wins for California workers. Employees in the healthcare and hospitality industries will also be covered by higher minimum wage rates taking effect in California.
A law that Gov. Gavin Newsom signed in 2023 will gradually raise the minimum wage for healthcare workers in the state to $25 an hour. The first rate increases took effect in October 2024. As of July 1, the minimum wage will go up to $24 an hour for employees of certain types of healthcare facilities (e.g. hospitals with 10,000 or more workers), and to $18.63 an hour for others (e.g. safety net hospitals).
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Thanks to a recent Los Angeles City Council vote to give raises to workers in the tourism industry, hotel workers in LA will be eligible for an hourly minimum wage of $22.50 starting on July 1.
California’s state-wide minimum wage is $16.50 an hour, but many other cities in the Golden State go higher, including San Diego, San Jose, San Francisco and Santa Clara.
Tips for dealing with wage hikes. Alaska and Oregon are among 23 states raising their minimum wage this year, with most hikes having already taken effect this past January.
Complying with new minimum wage rates can create complicated secondary or indirect effects for HR teams, such as wage compression or higher health insurance premiums, as HR Brew previously reported. To get ahead of such challenges, HR leaders might want to consider reviewing their company’s pay grade structure, as well as assess any potential costs that could arise from wage hikes.
Even as dozens of states and localities are moving to raise their minimum wages, the federal minimum wage remains at $7.25 an hour, which hasn’t changed since 2009. However, employees are entitled to the highest minimum wage rate in effect where they work (often the state or local rate).