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national employment law project
'A National Disgrace': 19 States to Raise Minimum Wage But Federal Rate Stuck at $7.25
One Fair Wage noted that "tipped workers can still legally be paid as little as $2.13 an hour, a system advocates describe as a direct legacy of slavery."
Dec 31, 2025
Over a third of US states are set to raise their minimum hourly wage in 2026, but worker advocates including Sen. Bernie Sanders on Wednesday decried a federal minimum wage that's remained at $7.25 since 2009—and just $2.13 an hour for tipped workers for over three decades.
Minimum wage hikes are set to go into effect in 19 states on Thursday: Arizona, California, Colorado, Connecticut, Hawaii, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, Virginia, and Washington.
Increases range from 28 cents in Minnesota to $2 in Hawaii, with an average hike of 67 cents across all 19 states. More than 8.3 million workers will benefit from the increases, according to the Economic Policy Institute (EPI). The mean minimum wage in those 19 states will rise to $14.57 in 2026, up from $13.90 this year.
Three more states—Alaska, Florida, and Oregon—plus Washington, DC are scheduled to raise their minimum wages later in 2026.
In addition to the state hikes, nearly 50 counties and municipalities plan to raise their minimum wages in the coming year, according to the National Employment Law Project (NELP). These include San Diego, California—where the minimum wage for hospitality workers is set to rise to $25 an hour by 2030—and Portland, Maine, where all workers will earn at least $19 by 2028.
However, the federal minimum wage remains at $7.25, and the subminimum rate for tipped workers is $2.13, where it's been since 1991—and has lost more than half its purchasing power since then.
The federal minimum wage has stayed at $7.25 since 2009. In 2026, workers in 19 states and 49 cities and counties an increase. Alabama’s rate will stay at $7.25. 🔗 https://t.co/mrGfPAKba3 pic.twitter.com/EsokVIc6KP
— AL.com (@aldotcom) December 31, 2025
"Tipped workers can still legally be paid as little as $2.13 an hour, a system advocates describe as a direct legacy of slavery," the advocacy group One Fair Wage (OFW) said in a statement Tuesday.
Sanders (I-Vt.) said on social media on the eve of the hikes: "Congratulations to the 19 states raising the minimum wage in 2026. But let’s be clear: A $7.25 federal minimum wage is a national disgrace. No one who works full time should live in poverty. We must keep fighting to guarantee all workers a living wage—not starvation wages."
Yannet Lathrop, NELP's senior researcher and policy analyst, said earlier this month that "the upcoming minimum wage increases are incremental and won’t magically turn severely underpaid jobs into living-wage jobs, but they do offer a bit of relief at a time when every dollar matters for people."
“The bigger picture is that raising the minimum wage is just one piece of a much larger fight for a good jobs economy rooted in living wages and good benefits for every working person," Lathrop added. "That’s where we need to get to."
Numerous experts note that neither $7.25, nor even $15 an hour, is a livable wage anywhere in the United States.
"The gap between wages and real living costs is stark," OFW said. "According to the MIT Living Wage Calculator, there is no county in the United States where a worker can afford to meet basic needs on less than $25 an hour. Even in the nation’s least expensive counties, a worker with one child would need at least $33 an hour to cover essentials like rent, food, childcare, and transportation."
"Advocates argue that policies like President [Donald] Trump’s 'no tax on tips' proposal fail to address the underlying problem of poverty wages," OFW continued. "While the policy has drawn attention, they say it is a headline rather than a solution, particularly since nearly two-thirds of tipped workers do not earn enough to owe federal income taxes."
Frustrated by the long-unchanged $7.25 federal minimum wage, numerous states in recent years have let voters give themselves raises via ballot initiatives. Such measures have been successful even in some red states, including Missouri and Nebraska.
Rising minimum wages are a legacy of the union-backed #FightFor15 movement that began among striking fast-food workers in 2012. At least 20 states now have minimum wages of $15 or higher.
However, back then, "the buying power of a $15 minimum wage was substantially higher than it is today," EPI noted. "In 2025, a $15 minimum wage does not achieve economic security for working people in most of the country. This is particularly true in the highest cost-of-living cities."
In April, US senators voted down an amendment that would have raised the federal minimum wage to $17 an hour. Every Democratic and Independent upper chamber lawmaker voted in favor of the measure, while all Republicans except Sen. Josh Hawley (Mo.) rejected it.
As Trump administration and Republican policies and practices—such as passing healthcare legislation that does not include an extension of Affordable Care Act tax credits, which are set to expire on Wednesday and send premiums soaring—coupled with persistently high living costs squeeze workers, advocates say a living wage is more important than ever.
The issue is underscored by glaring income and wealth inequality in the US, as well as a roughly 285:1 CEO to worker pay gap among S&P 500 companies last year.
"Minimum wage doesn't cover the cost of living," Janae van De Kerk, an organizer with the Service Employees International Union (SEIU) Airport Workers union and Phoenix Sky Harbor International Airport employee, said in a video posted Tuesday on social media.
"Minimum wage doesn't cover the cost of living. Many of my co-workers have to choose between food on the table or health insurance" Janae, Phoenix Sky Harbor Airport service worker No one should have to make that choice.
[image or embed]
— Airport Workers United (@goodairports.bsky.social) December 30, 2025 at 10:34 AM
"Many of my co-workers have to choose between food on the table or health insurance, or the choice between having food and paying the electric bill," van De Kerk—who advocates a $25 hourly minimum wage—continued.
"We shouldn't have to worry about those things," she added. "We shouldn't have to stress about those things. We're willing to work and we wanna work, and we should be paid for our work."
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'When We Fight, We Win': Amazon Boosts Pay as Workers Launch Bid for $25 an Hour
"Today shows that Amazon workers are united and stronger than ever in our demands for higher pay," said one warehouse worker and organizer.
Sep 18, 2024
As Amazon workers across the United States launched a campaign demanding at least $25 an hour, the e-commerce giant announced Wednesday that it is raising hourly pay for its warehouse workers and drivers.
In what Amazon vice president of worldwide operations Udit Madan called the company's "biggest-ever investment in pay and benefits," the average starting pay for U.S. fulfillment and transportation workers will rise starting this month.
"Members of our front-line team will be getting at least an additional $1.50/hour starting this month, which will bring their average base wage to more than $22/hour and average total compensation to more than $29/hour when you include the value of their elected benefits," such as healthcare, said Madan, who added that the workers will also receive free Amazon Prime subscriptions.
While the Amazon workers who launched the drive for $25 welcomed the announcement, they say they deserve more.
"I've lost out on thousands of dollars of income. I haven't gotten a paycheck since my short-term disability—which only covered 60% of my regular pay—ended in January," said Christine, a worker at Amazon's STL8 fulfillment center in Missouri and longtime member of the STL8 Organizing Committee.
"I'm awaiting approval for long-term disability, which I applied for back in January," explained Christine, who was injured on the job. "I've maxed out my credit cards and drained my 401(k). I'm on food stamps. I just got approved for Medicaid. At one point I started a GoFundMe just to make rent. I've never been in the position of having to ask for money, but the alternative was homelessness. When you're forced into that position, you do what it takes to survive."
"Today shows that Amazon workers are united and stronger than ever in our demands for higher pay," she added. "With over 800 worker signatures on our petition and new workers joining us from across the region, together we will win the $25 an hour that we all deserve."
According to the campaign:
Research suggests working families need at least $25 to make it by. In Missouri, for example, a livable wage for a family of four is at least $25; in New York, the livable wage is even higher, at $39. However, a majority of Amazon warehouse workers reported earning wages between $16 and $20—before Amazon increased starting pay to $17 in September 2023. Amazon itself reports an average pay of $20.50.
"The $1 raise that Amazon gave workers last year was shameful. After accounting for inflation, it wasn't even a raise," lamented Irene Tung, senior researcher and policy analyst at the National Employment Law Project. "Our research has shown that Amazon tends to locate its warehouses in high earnings counties around the country, but lags behind other warehouse employers in pay—even though it can afford to pay workers much more."
Advocates point to Amazon's $30.4 billion 2023 profits as proof that the company can afford to pay its workers more.
"Raising pay by 25% would bring Amazon workers much closer to a middle-income standard of earnings," Tung said. "Given Amazon's size and the enormity of its wealth, it is not far-fetched to ask why this company has thus far failed at creating middle-income jobs for the hundreds of thousands of U.S. workers that power its operations."
Beth Gutelius—the author of Handling Hardship: Data on Economic Insecurity Among Amazon Warehouse Workers—said in a statement that "if warehouse wages had kept pace with inflation, workers would be earning $25.66 an hour—so workers are simply asking Amazon to bring wages in line with the cost of living, which as we know has risen sharply."
"Doing so would help ensure that workers are able to meet their basic needs without relying on public assistance," she added.
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Minimum Wage Hikes Will Boost Pay of Nearly 10 Million US Workers in 2024
"These raises are the outcome of over a decade of workers organizing with Fight for $15," said the National Employment Law Project.
Dec 27, 2023
Tireless campaigning by economic justice advocates helped to secure minimum wage hikes for nearly 10 million U.S. workers starting in 2024, and one think tank noted on Wednesday that further successes at the state and local levels are expected in the coming year—but experts said the federal government must catch up with state legislators to deliver fair wages to all workers.
January 1 will see 22 states increase their minimum wages, providing affected workers with an additional $6.95 billion.
That's not counting the 38 cities and counties where minimum pay will be raised starting New Year's Day, including in Montgomery County, Maryland and in Tukwila, Washington, a city outside Seattle that will have the highest minimum wage in the country at $20.29 per hour.
A shrinking number of states still abide by the federal minimum wage of $7.25 per hour, which has not been updated in nearly 15 years.
"In the absence of federal action, states and localities continue to take the lead in advancing fairer wage floors via legislation, ballot measures, and automatic inflation adjustments," wrote Sebastian Martinez Hickey, a research assistant at the Economic Policy Institute (EPI), last week.
For the first time in 2024, Maryland, New Jersey, and New York will require workers to be paid at least $15 an hour, joining other high cost-of-living states including California, Massachusetts, and Connecticut.
At the National Employment Law Project (NELP), senior researcher and policy analyst Yannet Lathrop pointed out on Tuesday that just over a decade after the national Fight for $15 movement was launched, none of the recent ongoing minimum wage campaigns demand less than $15 per hour, and many of the recent victories and campaigns push for "significantly higher wage floors of $20 or above."
The bold demands and reforms of the past year signal "the strength of the movement and a recognition that robust wage increases are needed especially in a post-pandemic, high inflation economic environment," wrote Lathrop. "Some of these campaigns are also demanding equal wages and treatment for all workers including those earning tips, signaling the increasing importance of equitable wage policies."
NELP also noted that the adoption of the $15 minimum wage by large employers like Starbucks and Amazon is likely to positively influence the wage policies of companies across the country.
In addition to raising minimum wages, city and state policymakers have taken other actions this year to stop the exploitation of workers. An ordinance passed in Chicago will phase out the subminimum wage for tipped workers by 2028, and in Boulder County, Colorado, the minimum wage will be raised to $25 per hour by 2030.
Advocates brought to Boulder County policymakers' attention EPI's Family Budget Calculator, wrote Hickey, which showed that a two-income, two-parent, two-child household would need to earn roughly $26 per hour at both jobs to cover "a modest living standard."
The research underscored "how difficult it is for low-wage workers to find a way to live sustainably," Hickey wrote. "A $25 minimum wage might seem high, but the truth is that Boulder County is unlikely to be the highest minimum wage in the country in 2030 because of steps other localities have taken to index their minimum wages to inflation. Strong minimum wage policy can only benefit localities seeking a thriving and equitable local economy."
According to EPI, the minimum wage increases across the U.S. in the new year will disproportionately benefit Black and Hispanic workers. Black Americans make up 9% of the workforce in the states where increases will go into effect, but represent 11.1% of the affected employees. Fewer than 20% of workers in the states are Hispanic, but Hispanic workers make up 37.9% of those whose wages will be increased.
The new state and local laws will increase the purchasing power of households that include 5.6 million children, as more than a quarter of affected workers—2.5 million people—are working parents.
And nearly 20% of workers who will get a raise on January 1 have incomes below the poverty line.
"The minimum wage continues to be a powerful tool for fostering economic equity and ensuring a dignified standard of living for workers across the nation," wrote Hickey. "The proactive steps many states and localities took to index their minimum wages to inflation has helped protect the purchasing power of low-wage workers during the recent period of inflation."
NELP noted that later in 2024, additional minimum wage increases will go into effect in at least three more states and 22 more cities and counties—and advocates will continue campaigning for more victories across the country in the coming year.
Campaigners in states including Alaska, Ohio, and Oklahoma are collecting signatures for ballot initiatives that would push minimum wages to $15 or above, and in California an initiative pushing for an $18 minimum wage by 2026 has qualified for 2024 ballots.
Hickey noted that campaigners are still fighting on behalf of 17.6 million workers who employers continue to pay less than $15 per hour—almost half of whom live in one of the 20 states that use the federal minimum wage.
"Policy reforms are still necessary," wrote Hickey, "to overcome federal inaction and the persistence of unjust minimum wage carve-outs like the tipped minimum wage."
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