Minimum Wage to Increase in Most States

WASHINGTON - Millions of workers will soon see a boost in their paychecks when minimum wage increases to $7.25 per hour in 30 states.

According to the U.S. Department of Labor , the increase goes into effect July 24 for employees covered by the federal Fair Labor Standards Act (FLSA).

This change will directly benefit workers in the following states: Alabama, Alaska, Arkansas, Delaware, Florida, Georgia, Idaho, Indiana, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Wisconsin and Wyoming.

A family with a full-time minimum wage earner would see its monthly income increase by about $120, which is estimated to be one week's worth of groceries for an average family, 2 – 3 tanks of gas, or one week's worth utilities.

"This administration is committed to improving the lives of working families across the nation, and the increase in the minimum wage is another important step in the right direction," said Secretary of Labor Hilda L. Solis. "This well-deserved increase will help workers better provide for their families in the face of today’s economic challenges. I am especially pleased that the change will benefit working women, who make up two-thirds of minimum wage earners."

Many states have minimum wage laws with provisions that differ from the federal law. When an employer is subject to both, the employer must pay the higher of the two rates.

Employers and employees seeking more information on the increased minimum wage may call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243).