Minimum wage hikes for millions of workers are going into effect in 22 states

Upwards of 10 million workers will see a bump in their paychecks in 2024. Twenty-two states hiked their minimum wage rates to help low-income employees make ends meet.

The most generous state is Hawaii. The Aloha State is increasing its minimum wage by two bucks to $14 per hour. Michigan’s increase is the smallest – a 23 cent per hour increase to $10.33. But a pending lawsuit in the Wolverine State could ramp up the hourly rate to $12 if thousands of low-income workers win their case in front of the Michigan supreme court.

Maryland, New Jersey and upstate New York low-income workers’ wage rate will top $15 an hour starting this January 1. They join California ($15.50), Connecticut, Massachusetts, Washington state and the remainder of New York offering $15 per hour or higher.

The 22 states increasing their minimum wage rates in 2024 are Alaska, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont and Washington state.

The federal minimum wage remains $7.25 per hour, set by the Department of Labor. States can use that as the default rate or they can institute a higher wage rate. Neighboring states may offer vastly different rates, which can give employers in the higher-wage state a leg up. For example, the Illinois (not including Chicago) minimum wage is now $14 an hour compared to next-door Indiana at $7.25.

Employers to use technology to replace workers

Some employers will, of course, try to replace entry-level workers with technology such as Artificial Intelligence and robots. The food industry in particular is expected to lay off workers by the droves.

Just before the California wage hike went into effect, Pizza Hut announced it would lay off more than 1,200 delivery drivers. A wage hike just for fast food workers, from $16 to $20 per hour in the Golden State, is liable to spur other restaurant chains to let people go.

About 17 million workers are minimum wagers. Nearly 58% are women.