The federal minimum wage has been $7.25 per hour since July 2009 — the longest stretch without an increase since the minimum wage was established in 1938.
As of 2026, thirty states plus Washington, D.C. have set minimum wages above the federal floor. California, New York, Washington State, and several others have already reached or exceeded $15 statewide.
The Congressional Budget Office estimated in 2021 that a federal $15 minimum would raise pay for roughly 17 million workers but reduce employment by about 1.4 million — both projections come with wide error bars.
Supporters argue the current floor falls far below a living wage in nearly every U.S. county and that gradual increases have shown limited employment effects. Opponents argue that automation and reduced hiring offset much of the gain, especially for entry-level workers.
Economists remain split. Recent studies of state and city minimum-wage increases find a range of small positive to small negative employment effects, depending on local labor-market conditions.