More and more states, counties, and cities are instituting mid-year wage hikes – primarily based on adjustments for inflation. As minimum wage mandates reach new heights in some places across the country, the bulk of economic evidence shows drastic increases cost jobs, close businesses, and contribute to inflation.
Since the first wave of state and local minimum wage hikes in January, 26 states and localities instituted higher wage requirements as of July 1. Many of these increases also apply to tipped restaurant employees.
The states and local areas raising their wages includes:
|
State/City |
Tipped Wage |
Regular Minimum Wage |
|
Alameda, CA |
$17.00 |
$17.00 |
|
Berkeley, CA |
$18.67 |
$18.67 |
|
Emeryville, CA |
$19.36 |
$19.36 |
|
Fremont, CA |
$17.30 |
$17.30 |
|
Los Angeles (city), CA Hotel employees |
$17.28 $20.32 |
$17.28 $20.32 |
|
Los Angeles (county), CA |
$17.27 |
$17.27 |
|
Malibu, CA |
$17.27 |
$17.27 |
|
Milpitas, CA |
$17.70 |
$17.70 |
|
Pasadena, CA |
$17.50 |
$17.50 |
|
San Francisco, CA |
$18.67 |
$18.67 |
|
Santa Monica, CA |
$17.27 |
$17.27 |
|
West Hollywood, CA |
$19.08 |
$19.08 |
|
District of Columbia |
$10.00 |
$17.50 |
|
Chicago, IL Small employers |
$11.02 $11.02 |
$16.20 $15.20 |
|
Cook County, IL |
$8.40 |
$14.05 |
|
Montgomery County, MD Mid-size employers Small employers |
$4.00 $4.00 $4.00 |
$17.15 $15.50 $15.00 |
|
Saint Paul, MN Mid-size employers Small employers Micro employers |
$15.57 $14.00 $12.25 |
$15.57 $14.00 $12.25 |
|
Nevada (state) |
$12.00 |
$12.00 |
|
Santa Fe (city), NM (March) |
$3.00 |
$14.60 |
|
Santa Fe (county), NM (March) |
$4.38 |
$14.60 |
|
Oregon (state) |
$14.70 |
$14.70 |
|
Portland, OR |
$15.95 |
$15.95 |
|
Non-urban counties, OR |
$13.70 |
$13.70 |
|
Puerto Rico |
$2.13 |
$10.50 |
|
Bellingham, WA (May) |
$17.28 |
$17.28 |
|
Renton, WA Small employers |
$20.29 $18.29 |
$20.29 $18.29 |
|
Tukwila, WA Mid-size employers Small employers |
$19.29 $16.28 |
$19.29 $16.28 |
Get the full updated list of state and city minimum wage hikes for 2023-2024 here.
Some of the infamous new increases took place in the cities of Washington, D.C. and Chicago – where anti-tipping activists pushed measures to eliminate the cities’ tip credits.
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Washington, D.C.’s tipped minimum wage rose from $8 to $10 per hour on July 1. Recent analysis of federal jobs data shows that after just one year moving toward full tip credit elimination, the full-service restaurant industry has a net loss of nearly 1,000 jobs.
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Chicago’s tipped minimum wage rose from $9.48 to $11.02 per hour on July 1. Federal jobs data shows that in the months leading up to this first increase on the way to full tip credit elimination, full-service restaurants in the Chicago metro area have been shedding jobs despite job growth in limited-service restaurants and total area employment.
Other notable developments include backlash to sky-high minimum wage rates from business operators concerned about their ability to survive with ever-increasing labor costs.
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California instituted its $20 minimum wage for all fast food franchise restaurants in the state, and businesses are already being forced to raise menu prices, lay off staff, or shut their doors. The most recent data shows historically low annual fast food employment growth and net job losses.
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West Hollywood City Council postponed a scheduled July 1 wage hike, citing business concerns about the disastrous impacts on the local restaurant industry. The City Council voted to delay the scheduled increase until 2025.
As temperatures get hotter, lawmakers should stay vigilant for negative consequences playing out in their districts as minimum wage mandates across the country overheat.