USA Minimum Wage Increase 2025: New Rates and State-by-State Breakdown

A minimum wage is referred to as the Lowest Wage received by the workers on an hourly basis. This state minimum wage helps the worker to have an Equal Distribution of income. However, the people of the country have demanded to increase in the price of minimum wage by the federal government. Some of the local areas in the U.S. have increased their minimum wage while others have not which creates a difference between all the states having equal distribution of income. The minimum wage criteria are set by the Fair Labor Standards Act (FLSA) and the current rate is $7.25 per hour.

USA Minimum Wage Increase 2025

Every individual working and earning always aspires to earn the deserving amount for the time they have been working for. To signify this concept and be fair to working individuals the government of the U.S. introduced this concept of a Minimum Wage with 25 cents per hour back in the year 1938. While the state government set the concept of Minimum Wage in the year 1938, some states such as Massachusetts started this in 1912 for women and children. After the FLSA introduced this idea, every individual felt Included and Important. It gave them a chance to earn fairly according to their work hours.

While the state has set a unanimous minimum wage, some of the cities have set their criteria and have higher minimum wages than those of the state. Due to this, the federal government is requested to go ahead and prevail the highest rate to match the difference between the Federal and Local Minimum Wage. As discussed, these wages are given to every American but some of them are a case of exception as they might be working on tips or fall under different minimum wage categories.

This initiative started by the government has the purpose of protecting the people from exploitation and making sure that every worker gets the basic earnings they deserve. The minimum wage earned by individuals at first was 25 cents in 1938 and after that, it was last changed in the Year 2009 and reached $7.25 per hour.

USA Minimum Wage Increase Overview

Department	U.S. Department of Labor
Article On	USA Minimum Wage Increase
Country	USA
Program Name	Fair Labor Standards Act (FLSA)
Minimum Wage	$7.25
Category	Government Aid
Official Website	Dol.gov

Understanding Fair Minimum Wage Act

The Fair Labor Standards Act (FLSA) is part of the federation which is responsible for deciding the minimum wage for workers on an Hourly Basis. $7.25 per hour is the minimum wage for the USA citizens. This department also allows the employees to work overtime and get their minimum wages for the same. The individuals who work overtime are categorized as Non-Exempt Employees who are legally allowed to receive their overtime pay. The FLSA is backed by the U.S. Department of Labor. In the U.S. different states have set their minimum wage which is even higher than federal.

Furthermore, it is the responsibility of the working individuals to Maintain their Hourly Records and check their wages earned accordingly. Under the FLSA act the employers are allowed to pay less to the tipped employees as the minimum wage set for them is $2.13 Per Hour. When the minimum wage is combined with their tips it reaches the level of minimum wage which is fair in their case. Additionally, some of the workers or even industries are exempted from the criteria of minimum wage.

Different Wage Criteria in the States of U.S.

States	Wages Per Hour
District Of Columbia	$17.50
Washington	$16.66
California	$16.50
New York	$16
Massachusetts	$15
Illinois	$15
Maryland	$15
Connecticut	$16.35 (tipped workers)
Colorado	$14.81
Arizona	$14.70
Oregon	$14.70
Florida	$13
Texas	$7.25 (same as federal)

Increase in U.S. Minimum Wage

The minimum wage for the U.S. has been fixed at $7.25 and has not changed since 2009. The individuals working in different parts of the country feel inequality with their wages and are eagerly looking forward to getting their hourly wages increased. The Raise Wage Act 2025 is in progress and if passed the minimum wage will be extended to $17 by the year 2030. This act will also ensure that the service industry workers and the tipped workers also receive the minimum wage. Moreover, it will also ensure that the disabled do not receive any Subminimum Wage certificates which will ensure competitive employment and participation.

Importance of increased minimum wage?

The times have changed and so have the Prices of Necessities. It feels important to increase the minimum wage so that families can be pulled out of poverty or can be prevented from the verge of being in poverty. Increased minimum wage will also help the Consumers to Spend More which will contribute to the growth of the economy. It will help the low and moderate-wage workers to be a part of equally distributed income. Increasing the minimum wage will also create more and more Job Opportunities. Moreover, it will also help in increasing the tax revenue earned by the government as more earnings will result in more tax.

Increasing the minimum wage will also help in Improving the Living Standards of the individuals and cover their expenses such as food bills, medications, and house allowance. It will also help in improving the health of the individuals as increased income can help in maintenance of health.  

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