In Case You Missed It - New Year Brings New Pay Bumps in 23 States

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ICYMI: New Year Brings New Pay Bumps in 23 States

In case you missed it, the new year brought increased incomes to workers earning the minimum wage in 23 states. The pay hikes, which range from just 23 cents to as much as an extra $1.50 an hour, will boost the incomes of 8.4 million workers, according to estimates from the Economic Policy Institute.

Workers earning the minimum wage in the remaining states will see no mandated changes in their hourly wages, and there are still employees in many states earning the federal minimum wage, which is just $7.25 an hour.

Increasing wages will go a long way toward helping many workers whose wallets have been hit by inflation, which was at an annual rate of 7.1% in November. Residents in Washington got one of the biggest boosts, with a $1.25 hourly wage increase for workers earning the minimum wage. Workers in Washington earn the highest statewide minimum wage, at $15.74 an hour.

But workers in these states won't be the only ones getting a boost. In addition to statewide increases, 27 cities and counties around the country also boosted minimum wages. After a new year's bump of $1.52, workers in SeaTac, Washington earn the nation's highest minimum wage: $19.06 per hour.

- Kristin

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Term of the Day

Flexible Spending Account (FSA)

A flexible spending account (FSA) is an employer-sponsored savings account that lets employees pay certain out-of-pocket medical or dependent care costs with pre-tax dollars.

You contribute to these accounts by withholding a portion from each paycheck throughout the year, similar to a 401(k) retirement savings plan.

Health care FSA funds are accessible from the beginning of the plan year even if you haven't contributed anything yet, but you must wait until you've made contributions to your dependent care accounts before you can use them. FSAs are best for people who can forecast yearly qualifying costs accurately, because if you don't use all your savings by year-end, you lose it.

Off the Charts

Here are the states where minimum wage is rising—and where it still remains at the federal minimum of $7.25.