Nearly 10 million Americans will get raises from minimum wage hikes in 2024: Study

A new year will bring more pay for millions of Americans, according to a new study from the Economic Policy Institute (EPI).

On New Year’s Day, 22 states will raise their minimum wage, giving nearly 9.9 million Americans a pay raise. In total, workers will receive $6.95 billion in additional wages from the increases.

In addition, 38 cities and counties will increase their minimum wages on Jan. 1, rising above their state floors and adding to the number of workers who will see any increase in their paychecks.

The analysis by EPI shows women will make up 57.9 percent of the workers getting an increase on the first day of 2024.

Minimum wage increases will also disproportionately help Black and Hispanic workers, the EPI said.

African Americans make up 9 percent of the workforce in states with increases, but they are 11 percent of the workers affected by the increases. Meanwhile, Hispanic workers make up 19.6 percent of the states’ workforces, but they are nearly 40 percent of the ones earning an increase.

The increases will also benefit families, with 25.8 percent of affected workers being parents, equating to more than 2.5 million people. As a whole, 5.6 million children are living in homes where an individual will receive a minimum wage increase.

Workers and families in need will earn support from the increases. Almost 1 in 5 workers getting a raise have incomes below the poverty line, and 47 percent have incomes two times below the poverty line.

Individuals in California, Hawaii and New York make up 51 percent of those earning a raise, all states with high costs of living.

The 22 states increasing their minimum wage in the new year are:

• Maine
• Vermont
• Washington
• Montana
• Minnesota
• Michigan
• Illinois
• New York
• Rhode Island
• South Dakota
• Ohio
• New Jersey
• Connecticut
• California
• Colorado
• Nebraska
• Missouri
• Maryland
• Deleware
• Arizona
• Alaska
• Hawaii

Hawaii has the highest increase, growing by $2 to $14 per hour. This translates to a boost of $1,380 in annual wages for the average full-time worker.

Michigan has the smallest increase, going from $10.10 per hour to $10.33, translating to an additional $216 a year for an average full-time worker.

A case before the Michigan Supreme Court could increase that amount for low-wage workers.

Among other notable increases, the minimum wages in Maryland, New Jersey and upstate New York will equal or exceed $15 per hour for the first time, joining the rest of New York, California, Connecticut, Massachusetts and Washington as the only states with minimum wages at or above $15 per hour.

Seven states have passed legislation or ballot measures to reach or exceed $15 per hour. The states are Delaware, Florida, Hawaii, Illinois, Nebraska, Rhode Island and Virginia.

More than 17 million workers still earn less than $15 per hour, according to EPI, and 47.8 percent of those people live in one of the 20 states that use the federal minimum wage of $7.25 per hour.