Workers across several Democratic-led states are set to ring in 2027 with another pay bump, widening an already sizable gap between state minimum wages and the federal floor of $7.25 an hour. Washington, California and Connecticut will all raise minimum wages that already top $17 an hour beginning Jan. 1, while New Jersey and Michigan will also hike their wage floors — widening the gap with the federal minimum of $7.25 an hour. Washington will lead the pack at $17.73 an hour, up 60 cents from its current $17.13 rate.
Connecticut’s minimum wage will rise from $16.94 to $17.48, while California’s will climb from $16.90 to $17.40. New Jersey will increase its minimum wage by 56 cents to $16.48 an hour for most workers, while Michigan is slated for one of the largest jumps, rising from $13.73 to $15 an hour. AOC-BACKED $30 MINIMUM WAGE PLAN COULD BACKFIRE IN UNEXPECTED WAYS, EXPERTS WARN The hikes come as several Republican-led states have also pushed their wage floors well above the federal rate, though they remain below the highest-paying blue states.
Florida’s minimum wage reached $15 an hour on Sept. 30 and will remain there through the end of 2027, while Missouri is also at $15. Nebraska will increase its minimum wage from $15 to $15.26 on Jan. 1. Washington’s statewide increase will come as Seattle pushes its own wage floor even higher.
The city’s minimum wage is slated to rise to $22.14 an hour in 2027, nearly $4.50 above the new statewide rate. Seattle’s wage requirements have also become a flashpoint in the debate over the costs facing local businesses. Beginning in 2025, all employers in the city, including small businesses, became subject to the same inflation-adjusted minimum wage.
Some restaurant owners who later closed their businesses cited rising labor costs among the financial pressures they faced. ECONOMIST WARNS THOUSANDS OF VIRGINIA JOBS AT RISK AFTER MINIMUM WAGE HIKE SIGNED BY SPANBERGER Washington’s minimum wage is tied to inflation under state law, with the wage floor recalculated each year rather than requiring lawmakers to approve a new increase. Washington voters approved a measure in 1998 that raised the minimum wage and, beginning in 2001, tied future increases to inflation.
Voters approved another measure in 2016 that set wage increases through 2020. Since 2021, the minimum wage has again risen annually with inflation, with the goal of keeping workers’ pay in step with rising prices. Each September, the Washington Department of Labor & Industries calculates the following year’s rate based on changes in the CPI-W.
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