The federal minimum wage is $7.25 per hour, and has not been changed in over a decade. But some states have higher minimum wage requirements, and others bumped it up even higher in 2025.
Minimum wage increased in more than 20 states on Jan. 1, 2025. The states with the highest minimum wage requirements are now Washington, California, and Connecticut — with minimum pay topping $16 per hour.
Other states to raise their minimum wage this year include: Alaska, Arizona, Colorado, Delaware, Illinois, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont and Virginia.
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Across the country, more than nine million U.S. workers will start seeing bigger paychecks in 2025 because of the changes, according to the left-leaning Economic Policy Institute. However, not everyone is happy.
"At the end of the day, restaurants have to survive too," said Paul Roma, accountant for National Coney Island. "And this would be devastating to the paradigm under which we do business."
Opponents like Roma say high minimum wage requirements will increase operating costs, which may ultimately be passed on to customers.
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Advocates, meanwhile, say higher wages help boost the economy.
"Wages drive more consumer activity," said Chris White, director of the Michigan chapter of the Restaurant Opportunities Center, a non-profit that advocates for higher wages for restaurant workers.
"So, what we're doing is stabilizing the industry," White added. "We're actually improving the industry by raising wages."
Many hourly workers like Rafeval Green say the pay bumps are a sign of progress.
"I feel like it's a step in the right direction," he said. "I feel like customer service needs it in general. I feel like it keeps the world going around."
