Living wages could see a major boost.
Since 2009, the federal minimum wage has been set at $7.25 an hour. However, Democrats in Congress have a new proposal that would see it jump to $25. But some lawmakers say it’s still not enough.
The Living Wage for All Act was introduced back in April and would raise the federal minimum wage to $25 per hour with a “two-track phase-in.” This would be made possible by forcing large, highly profitable corporations to lead the transition.
These major employers would need to reach $25 by 2031, while smaller employers would phase in more gradually, reaching $25 by 2038. The bill’s supporters claim the boost is needed in order to keep pace with the rising cost of housing, health care, groceries and others.
“Growing up, I saw my immigrant parents and my neighbors working multiple minimum wage jobs just to survive. Today, companies are reporting record-high earnings while working people struggle to survive. Minimum wage is not a living wage. That’s not right. If we want to address the affordability crisis, we must also address the wage crisis,” said Congresswoman Delia C. Ramirez in a press release.
According to a report, Senator Chris Murphy was set to introduce another bill to accompany the original legislation.
States across the country have proposed and passed similar legislation without the need of the federal government. In fact, 37 states are already above the federal minimum wage with 22 enacting the increases recently.
California’s standard rate is $16.90, with even higher wages for specific industries like fast food. Meanwhile, Alaska raised theirs to $13.00 per hour with laws on the books to reach $15.00 in 2027.
Despite states taking action, a Nexstar analysis reveals that if the federal bill passes, $25 an hour is enough for a single working adult to live “self-sufficiently” in all but 14 states — but that’s without children, by MIT’s calculations.
The calculator shows a living wage, in hourly rates, that an individual in a household must earn to support themselves and/or their family, working full-time or 2080 hours per year.
For example, one of the most expensive states for a single and working adult is Hawaii where folks would need to make nearly $30 an hour to survive. Two other states — Massachusetts and California — would also require a living wage of above $30 an hour.
If the new bill passed, Rhode Islanders would narrowly be able to afford their lives, as calculations revealed a single adult would need $25.01 an hour. Other states where a $25 federal minimum wage wouldn’t nearly be enough — Virginia, New Hampshire, Maryland, Colorado, Connecticut, Oregon, Washington, New Jersey, New York, and the District of Columbia.
So which states would be fine?
West Virginia has the lowest necessary income at $19.53 an hour, according to the MIT Living Wage Calculator. But again, that is only for a single working adult.
For those with children, only 11 states would be able to survive on a $25 minimum — and that’s by slim margins. Kansas just makes the cut with a living wage of $24.99 an hour for each of the two working adults.
Other states who hit the mark: Iowa, Texas, West Virginia, South Dakota, Alabama, Louisiana, Tennessee, Arkansas, Kentucky, and Mississippi.
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