7 hrs ago
Five US States Set Minimum Wage Increases for 2027
Five states plan to pay workers a higher minimum wage starting in 2027.
Washington’s statewide minimum wage will be the highest of the five, at $17.73 an hour.
The rates in California, Connecticut, New Jersey and Michigan will also go up.
The federal minimum wage will stay at $7.25 an hour.
Seattle, a city in Washington, plans to set its minimum wage at $22.14.
Washington changes its minimum wage each year based on inflation.
The article also says Washington’s job market has recently shown signs of weakness.
Some Seattle restaurant owners have cited higher labour costs among the pressures they faced.
Washington, California, Connecticut, New Jersey and Michigan plan to raise minimum wages on January 1, 2027.
Washington will have the highest statewide rate among them, rising from $17.13 to $17.73 an hour.
Connecticut’s rate will rise to $17.48, California’s to $17.40, New Jersey’s to $16.48 for most workers, and Michigan’s to $15.
The federal minimum wage remains $7.25 an hour; Seattle’s minimum wage is set to reach $22.14 in 2027.
Washington’s rate is adjusted annually for inflation, while the state reported 4.9% unemployment in August and an estimated loss of 900 jobs that month.
- Who
- Workers in Washington, California, Connecticut, New Jersey and Michigan; Seattle workers are also affected by the city’s planned rate.
- What
- The states plan to increase minimum wages in 2027, while Seattle plans to raise its rate to $22.14 an hour.
- Where
- Five US states and Seattle, Washington.
- When
- The state increases are scheduled to take effect on January 1, 2027; Seattle’s rate is also stated for 2027.
- Why
- Washington’s increase is calculated annually using inflation; the article does not specify a single reason for all five states’ increases.
Higher wage floors
Business cost concerns
Minimum wage increases
Higher wage floors
Workers in the named states are scheduled to receive higher minimum wages in 2027, and the article notes that state pay floors are increasingly above the federal rate.
Business cost concerns
The article says Seattle’s wage rules have become part of a wider debate about rising labour costs for businesses; some restaurant owners who later closed cited those costs among their pressures.
Key facts
- Federal minimum wage
- $7.25 an hour
- Washington 2027 rate
- $17.73 an hour, up from $17.13
- California 2027 rate
- $17.40 an hour, up from $16.90
- Connecticut 2027 rate
- $17.48 an hour, up from $16.94
- New Jersey 2027 rate
- $16.48 an hour for most workers, a 56-cent increase
- Michigan 2027 rate
- $15 an hour, up from $13.73
- Seattle 2027 rate
- $22.14 an hour
- Washington unemployment
- 4.9% in August, compared with 4.1% nationally
Sources
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