What State had the Highest Minimum Wage in 2024?

When the federal minimum wage was first established in the United States during the Great Depression the rate was just 25¢ an hour. Today, gradual increases have brought that figure to $7.25 an hour. As the cost of living continues to rise, however, some states have taken matters into their own hands, implementing minimum wages above the federal rate.

Because the cost of living varies so widely across the country, many states set their minimum wages to reflect their unique economic conditions. Even within states, minimum wages can vary due to city and county legislation. Given these differences, which state has the highest minimum wage?

Key Question: What state has the highest minimum wage in 2024?

Key Takeaways:

• States set minimum wage levels above the federal rate to improve worker protections and address local cost of living trends.
• Washington state had the highest minimum wage in 2024 with a rate of $16.28 per hour.
• In 2024, three other states had a minimum wage exceeding $15 per hour - California, Connecticut, and New Jersey.
• Minimum wage legislation can improve workers’ financial security and potentially even their physical health.
• However, critics argue that minimum wages can contribute to higher unemployment and even rising inflation.
• Minimum wages climbed in 2024 thanks to pre-planned increases and inflation adjustments, but growth is likely to slow in the next few years.

What state had the highest minimum wage in 2024?

According to the US Department of Labor, Washington had the highest minimum wage in 2024 with a rate of $16.28 per hour. The state will maintain that status in 2025 thanks to a 38¢ increase to $16.66. The honorable mention goes to Washington D.C., which, if it were a state, would take the top spot with a minimum wage of $17.50 in 2024.

Washington State has such a high minimum wage due to a 2016 ballot initiative that mandated a rate of $13.50 by 2020 with further increases tied to inflation. Washington adjusts its minimum wage at the start of each year based on the Consumer Price Index for the Seattle-Tacoma-Bellevue area. This helps ensure that minimum wage increases respond to local cost of living trends.

Top 10 states with the highest minimum wages in 2024

While Washington led the nation, plenty of other states also increased their minimum wages in recent years. The list below features the 10 states with the highest minimum wages in 2024.

1. Washington - $16.28

Washington’s minimum wage is indexed to inflation, meaning it has to be updated annually to account for the cost of living. Due to high inflation in recent years, Washington’s minimum wage has climbed, driving the state to the top of the list. Some cities in the state have even higher minimum wages – such as Tukwila, whose minimum wage rose to $21.20 in 2025.

2. California - $16.00

In addition to this baseline minimum wage, California also sets higher minimums for certain industries. Fast food employees, for instance, have a $20 per hour minimum. In 2025, California’s minimum wage is set to increase to $16.50.

3. Connecticut - $15.69

Connecticut’s minimum wage has climbed over the past few years in a series of $1 increments, reaching $15 per hour in 2023. Now, the minimum wage is indexed to inflation, with a 70¢ increase coming in 2025. If the federal minimum wage ever catches up or becomes equal to the state’s rate, Connecticut will automatically increase its wage to 0.5% above it.

4. New Jersey - $15.13

In 2018, New Jersey’s minimum wage was just $8.60 an hour. In 2019, however, legislation was passed to bring this figure up to $15 in a series of gradual increases. With further adjustments linked to inflation, New Jersey’s minimum wage will grow to $15.49 next year.

5 (Tied). New York - $15.00

While New York’s 2024 statewide minimum wage was $15 per hour, much of the state’s population lives in areas with higher local minimums. New York City, Long Island, and Westchester, for instance, have a minimum wage of $16. In 2025, both the state and local rates will climb by 50¢.

5 (Tied). : Maryland - $15.00

Not previously on the top 10 list, Maryland’s minimum wage recently increased by $1.75 to bring the state to $15 per hour in 2024. This followed a series of planned increases stemming from 2019 legislation. While this rate will stay the same in 2025, future years will see inflation-indexed increases.

5 (Tied). : Massachusetts - $15.00

Following two successive annual 75-cent increases, Massachusetts’s minimum wage reached $15 in 2023. It has remained at this level and will continue to do so barring new legislative initiatives. According to state policy, Massachusetts’s minimum wage must always be at least $0.50 more than the federal minimum wage.

8. Oregon - $14.70

In 2024, Oregon’s standard minimum wage was $14.70. Workers in different regions of the state, however, are subject to different minimums. In the Portland Metro area, the minimum wage rises to $15.95 per hour, while it falls to $13.70 in certain non-urban areas. In July 2025, these wages will likely increase due to an inflation-linked adjustment.

9. Colorado - $14.42

In 2006, Colorado’s government passed legislation linking the state’s minimum wage to inflation. As a result, the state has seen a series of steady increases, with the minimum wage set to rise to $14.81 in 2025. Some Colorado cities also set higher levels, with Denver’s minimum wage recently climbing to $18.81.

10. Arizona - $14.35

In 2017, Arizona’s minimum wage was just $8.05 per hour. That year, however, legislation both raised the minimum wage and tied future increases to inflation. In 2024, Arizona’s minimum wage rose 50¢ to reach $14.35 per hour. In 2025, this figure will rise to $14.70.

How minimum wage affects workers and employers

While most states have established their minimum wage, these laws are not without tradeoffs. In fact, five states have no minimum wage laws at all, defaulting to the $7.25 per hour federal rate (Alabama, Louisiana, Mississippi, South Carolina, and Tennessee). While supporters of minimum wage laws highlight their benefits for workers, critics argue that they increase unemployment and push up inflation.

Impact on workers

A minimum wage can directly increase workers’ quality of life by ensuring higher earnings and greater financial security. This is especially true for workers in manual labor or service jobs, who are more likely to earn the minimum wage. State legislation linking minimum wages to inflation also makes it easier for workers to keep up with cost of living pressures.

A 2020 study by Federal Reserve researchers found that minimum wages result in substantial increases in financial security based on payday loan and unsecured credit data. Further academic research has found some evidence that minimum wage increases could be tied to better public health outcomes, such as reduced rates of smoking and obesity.

Impact on employers

By increasing the cost of labor, however, higher minimum wages can make it more expensive for employers to hire workers. Researchers at Georgia Tech, for instance, found that higher minimum wages can result in an increase in unemployment, especially when the economy is in a recession. Economists have also argued that minimum wages can push up inflation since employers need to raise prices to cover their higher costs.

The true tradeoffs involved in the minimum wage are unsettled and a matter of further research. As inflation-linked minimum wages continue to rise around the country, however, expect to see more public debate about the impact on both employees and employers.

Factors influencing minimum wage decisions in 2024

In 2024, the main factor driving minimum wages continued to be inflation. In many states, this process is now automatic due to inflation-indexed minimum wages. Since inflation is often measured by the Consumer Price Index, which tracks prices for urban consumers, the cost of living in cities is particularly responsible for driving the minimum wage.

Growing awareness of how workers benefit from minimum wage laws is also playing a role. Even Missouri, which has historically had limited workers’ protections, will bring its minimum wage to $15 per hour thanks to a 2024 ballot initiative. Legislation to increase the federal minimum wage, however, does not appear to be forthcoming.

Future outlook: Will minimum wage continue to rise?

State-level minimum wages are set to continue rising in 2025, thanks to both scheduled increases and inflation adjustments. The latest data indicates that at least 28 states will be increasing their minimum wages this year. Michigan will see the largest increase due to a $2.15 jump to $12.48 per hour.

Other notable increases include Delaware, Illinois, and Rhode Island, where scheduled increases will bring the minimum wage to $15 for the first time. Looking toward the future, however, the pace of minimum wage increases may slow. Many states are coming to the end of pre-planned adjustments, and cooling inflation means that future cost-of-living adjustments may be small.

While it’s unlikely for minimum wages to be cut, high rates in certain areas of the country are sparking debate about the impact on businesses and employment. In Denver, for instance, some restaurants are facing closure due to being unable to afford the city’s $18.81 per hour minimum. Stories like these will continue to influence the political landscape and may lead to a pause in new minimum wage legislation.

Conclusion

State-level minimum wage laws are an important tool to address cost of living variations throughout the country. In high-cost states, particularly on the coasts, the federal $7.25 per hour minimum is widely seen as insufficient. In 2024, Washington had the nation’s highest minimum wage at $16.28 per hour, with California, Connecticut, and New Jersey all close behind.

Understanding state-level minimum wages is essential for both workers and employers. For individuals looking to improve their economic opportunities, states with a high minimum wage can potentially offer more financial security. For business owners, staying aware of minimum wage increases is important to remain legally compliant. Finally, policymakers must understand the nuanced impacts of minimum wage laws to balance the interests of workers, employers, and consumers.

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