It was one of the most hotly debated federal issues of 2014, but 21 U.S. states have moved ahead with their own minimum wage increases as of Jan 1, 2015.
The wage hikes pushed hourly pay for an estimated 3.1 million workers up to an average of $8 and a high of $9.15, the Economic Policy Institute (EPI) reported.
The state wage increases were enacted through ballot initiatives and legislation passed across various U.S. states – including Alaska, Arkansas, Connecticut, Florida, Nebraska, Ohio, Maryland, Massachusetts, Rhode Island and South Dakota.
“It’s not going to bring them a life of luxury, but it’s a substantial amount of money for somebody struggling to get by,” said EPI senior economic analyst David Cooper. “They can make payment plans for a car or buy some extra groceries.”
The U.S. Bureau of Labor Statistics estimates that about 4.3 percent of all hourly paid workers currently earn wages at or below the federal minimum of $7.25.
President Barack Obama has proposed raising the federal minimum wage to $10.10 per hour, but this effort has faced opposition – most of it from Republicans, which will now control both the House and Senate. The president also signed an executive order to raise the minimum wage to $10.10 for individuals working on new federal service contracts.
“Raising the minimum wage nationwide will increase earnings for millions of workers, and boost the bottom lines of businesses across the country,” said a White House statement. “While Republicans in Congress continue to block the President’s proposal, a number of state legislatures and governors, mayors and city councils, and business owners have answered the President’s call and raised wages for their residents and employees.”
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