Federal minimum wage

It's the longest stretch of time Congress has gone without raising the federal minimum wage.

The federal floor is $7.25 an hour — but only around 1% of workers are paid that little. Several states and cities will hike their minimums July 1.

The highest state minimum wages as of Jan. 1, 2024 will be Washington state at $16.28 and California at $16. But is that really enough to live on?

“What gives me hope is something that seemed impossible in 2012 is now very possible,” Henry told Marketplace.

Will employers notice? Many are already raising wages for their workers because of the labor crunch.

A listener writes: "If you make the minimum wage $15/hour, it’s not enough in New York and it’s way too much in Peoria. Would it be possible to tie the minimum wage to the cost of living?"

Raising the minimum from $7.25 to $15 per hour is part of the American Rescue Act, now making its way through Congress.

This is a fraught time to tackle minimum wage increases. It would address long-term inequities but more businesses are in trouble now.

This year especially, voters are sympathetic to minimum wage workers on the front lines during a pandemic, an economist says.

It would be the first increase at the federal level since 2009, but Senate Republicans aren't likely to consider the bill.