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Link to original content: https://www.investopedia.com/articles/investing/080515/top-5-us-cities-highest-minimum-wage.asp
The 5 U.S. Cities With the Highest Minimum Wage

The 5 U.S. Cities With the Highest Minimum Wage

Awareness campaigns have led to wage hikes

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Updated August 29, 2024
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As of January 2024, the federal minimum wage stands at just $7.25 per hour despite calls for a $15 minimum wage.

According to our research, the top five cities in the United States with the highest minimum wage as of 2024 are:

  • Tukwila, Wash.
  • Seattle, Wash.
  • SeaTac, Wash.
  • Mountain View, Calif.
  • Emeryville, Calif.

Key Takeaways

  • The minimum wage is the lowest amount of money that an employer can pay a worker per hour.
  • The federal minimum wage has been stuck at $7.25 for more than a decade, but there have been efforts to raise it to $15 per hour.
  • The current federal minimum wage is insufficient to support oneself or a family, particularly in the more expensive cities in the U.S.
  • Several cities have minimum wages that exceed the federal level; those with the highest rates are Tukwila, Seattle, SeaTac, Mountain View, and Emeryville.
  • Many states have minimum wage rates that are higher than the federal government's rate.

The Push for Higher Minimum Wages

Since its peak in 1968, the minimum wage relative to inflation and the cost of living has fallen steadily. Prior to the early 2010s, few states and municipalities had minimum wages significantly higher than the federal minimum wage. This changed when minimum wage workers came together to spread awareness about their plight.

These awareness campaigns were highly successful, drawing support from high-profile activists. These activists have since successfully pushed local governments in several cities to mandate higher minimum wages that enable workers to be self-sufficient.

It is extremely difficult, if not impossible, to support oneself (much less a family) with a minimum wage job (even when working full time), especially in expensive cities.

1. Tukwila, WA

As of January 2024, the minimum wage in Tukwila was $20.29 per hour for large employers and $18.29 for mid-sized employers.

Large employers are those with more than 500 employees worldwide. Mid-size employers are those with 15 to 500 worldwide or revenue of more than $2 million earned in Tukwila.

In July 2024, the minimum wage paid to employees at mid-sized companies will rise to $19.29. The rate of $20.29 paid by large employers will not rise at that time.

Tukwila's minimum wage is adjusted for inflation annually.

2. Seattle, WA

As of January 2024, the minimum wage in Seattle was $19.97 per hour. A lower rate of $17.25 applies if a small business (with 500 or fewer employees) pays $2.72 per hour toward medical benefits for employees or an employee earns $2.72 per hour in tips.

In June 2014, Seattle made history when its city council signed into law a mandate to raise the minimum wage for all workers in the city to $15 per hour. The city became the first in the U.S. to have a $15 minimum wage. At that time, no other city had a minimum wage that was even close.

In 2023, both large and small businesses paid a minimum wage of $18.69 per hour. A lower rate of $16.50 applied if a small business paid $2.19 per hour toward medical benefits for employees or the employee earned $2.19 per hour in tips.

Seattle's minimum wage is adjusted for inflation annually.

3. SeaTac, WA

As of January 2024, the minimum wage in SeaTac was $19.71 per hour.

That rate is only available to employees working in the city’s hospitality and transportation industries. Aside from those workers, SeaTac’s general minimum wage is the same as the state minimum wage, which is $16.28 per hour.

SeaTac's minimum wage is adjusted for inflation annually.

4. Mountain View, CA

As of January 2024, the minimum wage in Mountain View was $18.75 per hour.

Mountain View established its own minimum wage on Jan. 1, 2015, at $10.30 per hour. It was set to rise by a specified amount each year until it reached $15 in 2018.

Since 2019, Mountain View's minimum wage has been adjusted for inflation annually.

5. Emeryville, CA

As of July 2023, the minimum wage in Emeryville was $18.67. It is set to rise again in July 2024.

When Emeryville established its minimum wage ordinance on July 2, 2015, there were two minimum wage levels. These were $12.25 per hour for employees up to 55 years old and $14.44 per hour for those no younger than 56 years old. By 2019, the age categories no longer applied.

Emeryville's minimum wage rate is adjusted for inflation annually.

Several states have passed bills that will eventually put all cities in their jurisdictions at $15 or more per hour. Workers in some of these cities will have to wait a few years to benefit from the new minimum wage laws fully.

For example, Florida residents voted in November 2020 to increase the state’s minimum wage incrementally (beginning at $10 per hour on Sept. 30, 2021) until it reaches $15 per hour in September 2026. As of January 2024, it is $12 per hour.

Other states have minimum wages above the federal level, with 22 of those states increasing their wages further in 2024.

What States Have a $15 or Higher Minimum Wage?

California ($16), Connecticut ($15.69), Maryland ($15), Massachusetts ($15), New Jersey ($15.13), New York ($15; higher depending on area), and Washington ($16.28). Washington, D.C. has a minimum wage of $17.

Does Every State Have a Minimum Wage Law?

No. These states have no minimum wage law: Alabama, Louisiana, Mississippi, South Carolina, and Tennessee. In this case, the federal minimum wage of $7.25 applies.

What U.S. States Have the Lowest Minimum Wages?

Georgia and Wyoming have minimum wage rates of $5.15. In this case, the federal minimum wage of $7.25 applies.

The Bottom Line

The federal minimum wage of $7.25 has not increased since 2009 and is now too low to allow for families to live above the poverty line.

Due to demands from workers, many states, cities, and municipalities have a minimum wage above the federal rate. There continues to be a push to increase the federal minimum wage to $15, but it has been met with significant resistance.

Article Sources
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  1. U.S. Senate Committee on Health, Education, Labor & Pensions. "Top Democrats Introduce Bill Raising Minimum Wage to $15."

  2. U.S. Department of Labor. “Minimum Wage.”

  3. Labor Law Center. "State Minimum Wage Rates: City/County Minimum Wage Rates."

  4. Economic Policy Institute. "Twenty-two states will increase their minimum wages on January 1, raising pay for nearly 10 million workers."

  5. Economic Policy Institute. “Congress has never let the federal minimum wage erode for this long.”

  6. Move.org. “The Least Livable US Cities for Minimum Wage Earners.”

  7. City of Tukwila. "MINIMUM WAGE AND FAIR ACCESS TO ADDITIONAL HOURS OF WORK."

  8. Seattle Office of Labor Standards. "Minimum Wage."

  9. The National Law Review. “Minimum Wage Groundswell? Seattle, Others Raise Their Statutory Minimum Wage Rates.”

  10. City of SeaTac. “CITY OF SEATAC ANNOUNCES 2024 MINIMUM WAGE ADJUSTMENTS.”

  11. Washington State Department of Labor and Industries. “Minimum Wage.”

  12. City of Mountain View. “An Ordinance Amending Section 42.14 of the Mountain View City Code Related to the Citywide Minimum Wage,” Page 1.

  13. Emeryville, California. "Minimum Wage Ordinance."

  14. U.S. Department of State. "Notice: Increase to State of Florida's Minimum Wage."

  15. U.S. Department of Labor. "State Minimum Wage Laws."

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