Fights to increase minimum wage have raged for years between workers, federal, and state governments. Ranging from efforts by advocacy groups, individual protesters, and combined efforts of unions, the call to increase federal minimum wage standards has been long overdue. Now, this one state is responding to the call and is set to raise minimum wage standards for this one group of workers who could see increases reach as high as $30 for their labor.
Minimum wage standards differ depending on location
Currently, the federal minimum wage is set at $7.25/hour. However, workers have long called for a change to this standard, with federal standards not raised since 2009. With more than 15 years passing since this amount was implemented, the cost of living has risen exponentially, as well as inflation, particularly thanks to the influence of the COVID-19 pandemic.
While federal policy directs that the bare minimum to pay employees protected under the federal Fair Labor Standards Act is set at $7.25/hour, the good news is that most states have their own minimum wage standards, which are higher than this. While many Southern states are known for still abiding by federal minimum wage standards, others have more than doubled it, with states like California and Washington paying over $16/hour for their residents.
However, to add fuel to the fire, some states have a minimum wage set lower than federal standards. Georgia, for example, has the lowest minimum wage in the country, set at $5.15/hour. If you are an employee who is protected by the federal Fair Labor Standards Act, your employer must pay you the highest minimum wage between the state and federal minimum wage standards. However, certain laborers who are not covered by the Act are left to the discretion of their employer which minimum wage standards they follow.
These workers from this state could now earn $30
In a landslide win for hospitality employees, Ordinance 188610 in the Los Angeles City Clerk was recently signed into law at the end of May by Mayor Karen Bass, which will see hospitality workers’ wages in the state be increased to $30/hour by July 1, 2028, through staggered increases beginning next year. This wage increase is thanks to the state gearing up to host both the 2028 Summer Olympics and the 2026 FIFA World Cup.
“Hotel workers often live paycheck to paycheck and are frequently forced to work two or three jobs to provide food and shelter for their families,” describes the ordinance. “…They also rely on the public sector as a provider of social support services and, therefore, the City has an interest in promoting an employment environment that protects government resources.”
However, the new piece of legislation has received resistance from the hospitality industry, stating how such a required wage increase would be disastrous for employers, with American Hotel & Lodging Association CEO Rosanna Maietta describing the increase as an ‘economic tsunami’. Currently, Los Angeles’ minimum wage is set at $17.87/hour. This year also saw wage increases in Missouri from $12.30/hour to $13.75/hour.
Bad news for employees in this state
This year also saw wage disputes in Nebraska. While the state raised its minimum wage from $12/hour to $13.50/hour, with 2026 set to see the minimum wage be raised to $15/hour, many residents have expressed frustration that the wage increases are not enough to address the systemic cost-of-living crisis seen across the nation.
While the wage raise increase in Nebraska is expected to benefit minimum wage employees the most, low-income households in particular continue to feel the pressure to make ends meet. While the state tends to be more affordable than other locations in the US, with the state’s cost-of-living averages approximately 11% lower than national averages, the problem is that salary and wage increases are not adequately ensuring that residents feel supported.
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