The federal minimum hourly wage is just $7.25 and has not increased since 2009. The Raise the Wage Act of 2023, introduced in the U.S. House of Representatives and U.S. Senate on July 25, 2023, would gradually raise the federal minimum wage to $17 an hour by 2028. The bill would also gradually raise and then eliminate subminimum wages for tipped workers, workers with disabilities, and youth workers, so that all workers covered by the Fair Labor Standards Act (FLSA) would be at the same wage level.
27,858,000
Number of workers affected
19%
Share of U.S. workforce affected
$86 billion
Total additional wages provided
$3,100
Average increase per worker
EPI’s analysis shows that raising the federal minimum wage to $17 by 2028 would impact 27,858,000 workers across the country, or 19% of the U.S. workforce. The increases would provide an additional $86 billion annually in wages for the country’s lowest-paid workers, with the average affected worker who works year-round receiving an extra $3,100 per year.
Table 1 shows EPI’s estimates of the population of workers, by demographic and other characteristics, who would benefit from the Raise the Wage Act of 2023.
| Group | Total workforce | Directly affected | Share directly affected | Indirectly affected | Share indirectly affected | Total affected | Share of group who are affected | Group’s share of total affected |
|---|---|---|---|---|---|---|---|---|
| All workers | 146,831,000 | 14,727,000 | 10.0% | 13,131,000 | 8.9% | 27,858,000 | 19.0% | 100.0% |
| Gender | ||||||||
| Male | 75,687,000 | 5,695,000 | 7.5% | 5,440,000 | 7.2% | 11,135,000 | 14.7% | 40.0% |
| Female | 71,143,000 | 9,032,000 | 12.7% | 7,691,000 | 10.8% | 16,723,000 | 23.5% | 60.0% |
| Age group | ||||||||
| Ages 16–19 | 5,293,000 | 2,833,000 | 53.5% | 664,000 | 12.5% | 3,497,000 | 66.1% | 12.6% |
| Age 20 or older | 141,538,000 | 11,893,000 | 8.4% | 12,467,000 | 8.8% | 24,361,000 | 17.2% | 87.4% |
| Ages 16–24 | 19,834,000 | 7,306,000 | 36.8% | 3,346,000 | 16.9% | 10,652,000 | 53.7% | 38.2% |
| Ages 25–39 | 50,112,000 | 4,021,000 | 8.0% | 4,824,000 | 9.6% | 8,845,000 | 17.7% | 31.8% |
| Ages 40–54 | 45,431,000 | 1,762,000 | 3.9% | 2,764,000 | 6.1% | 4,526,000 | 10.0% | 16.2% |
| Age 55 or older | 31,453,000 | 1,638,000 | 5.2% | 2,197,000 | 7.0% | 3,835,000 | 12.2% | 13.8% |
| Race/ethnicity | ||||||||
| White, non-Hispanic | 86,494,000 | 7,040,000 | 8.1% | 6,501,000 | 7.5% | 13,541,000 | 15.7% | 48.6% |
| Black, non-Hispanic | 17,619,000 | 3,023,000 | 17.2% | 2,205,000 | 12.5% | 5,228,000 | 29.7% | 18.8% |
| Hispanic, any race | 28,750,000 | 3,703,000 | 12.9% | 3,378,000 | 11.7% | 7,081,000 | 24.6% | 25.4% |
| Asian, non-Hispanic | 9,717,000 | 416,000 | 4.3% | 642,000 | 6.6% | 1,058,000 | 10.9% | 3.8% |
| Other race/ethnicity | 4,251,000 | 545,000 | 12.8% | 406,000 | 9.5% | 950,000 | 22.4% | 3.4% |
| Not person of color | 86,494,000 | 7,040,000 | 8.1% | 6,501,000 | 7.5% | 13,541,000 | 15.7% | 48.6% |
| Person of color | 60,336,000 | 7,687,000 | 12.7% | 6,630,000 | 11.0% | 14,317,000 | 23.7% | 51.4% |
| Family status | ||||||||
| Married parent | 36,637,000 | 1,449,000 | 4.0% | 2,035,000 | 5.6% | 3,484,000 | 9.5% | 12.5% |
| Single parent | 13,290,000 | 1,918,000 | 14.4% | 1,810,000 | 13.6% | 3,728,000 | 28.0% | 13.4% |
| Married, no children | 37,987,000 | 1,574,000 | 4.1% | 2,327,000 | 6.1% | 3,901,000 | 10.3% | 14.0% |
| Unmarried, no children | 58,917,000 | 9,786,000 | 16.6% | 6,959,000 | 11.8% | 16,745,000 | 28.4% | 60.1% |
| Education | ||||||||
| Less than high school | 14,247,000 | 3,813,000 | 26.8% | 2,180,000 | 15.3% | 5,993,000 | 42.1% | 21.5% |
| High school | 36,207,000 | 5,281,000 | 14.6% | 4,970,000 | 13.7% | 10,251,000 | 28.3% | 36.8% |
| Some college, no degree | 33,167,000 | 4,445,000 | 13.4% | 3,828,000 | 11.5% | 8,273,000 | 24.9% | 29.7% |
| Associates degree | 13,417,000 | 780,000 | 5.8% | 1,081,000 | 8.1% | 1,861,000 | 13.9% | 6.7% |
| Bachelors degree or higher | 49,793,000 | 407,000 | 0.8% | 1,072,000 | 2.2% | 1,480,000 | 3.0% | 5.3% |
| Family income | ||||||||
| Less than $25,000 | 15,606,000 | 5,043,000 | 32.3% | 3,424,000 | 21.9% | 8,467,000 | 54.3% | 30.4% |
| $25,000–$49,999 | 27,224,000 | 3,088,000 | 11.3% | 3,625,000 | 13.3% | 6,713,000 | 24.7% | 24.1% |
| $50,000–$74,999 | 25,596,000 | 2,137,000 | 8.3% | 2,223,000 | 8.7% | 4,360,000 | 17.0% | 15.7% |
| $75,000–$99,999 | 21,089,000 | 1,390,000 | 6.6% | 1,386,000 | 6.6% | 2,776,000 | 13.2% | 10.0% |
| $100,000–$149,999 | 28,247,000 | 1,529,000 | 5.4% | 1,381,000 | 4.9% | 2,910,000 | 10.3% | 10.4% |
| $150,000 or more | 27,841,000 | 1,032,000 | 3.7% | 910,000 | 3.3% | 1,942,000 | 7.0% | 7.0% |
| Family income-to-poverty ratio | ||||||||
| In poverty | 9,860,000 | 4,186,000 | 42.5% | 1,765,000 | 17.9% | 5,951,000 | 60.4% | 21.4% |
| 100–199% poverty | 20,025,000 | 3,957,000 | 19.8% | 4,190,000 | 20.9% | 8,147,000 | 40.7% | 29.2% |
| 200–399% poverty | 45,502,000 | 3,969,000 | 8.7% | 4,482,000 | 9.8% | 8,450,000 | 18.6% | 30.3% |
| 400%+ poverty | 71,444,000 | 2,615,000 | 3.7% | 2,695,000 | 3.8% | 5,309,000 | 7.4% | 19.1% |
| Work hours | ||||||||
| Part-time ( | 8,450,000 | 2,313,000 | 27.4% | 1,135,000 | 13.4% | 3,448,000 | 40.8% | 12.4% |
| Mid-time (20–34 hours) | 20,979,000 | 5,896,000 | 28.1% | 3,434,000 | 16.4% | 9,330,000 | 44.5% | 33.5% |
| Full-time (35+ hours) | 117,401,000 | 6,518,000 | 5.6% | 8,562,000 | 7.3% | 15,080,000 | 12.8% | 54.1% |
| Industry | ||||||||
| Agriculture, fishing, forestry, mining | 2,263,000 | 265,000 | 11.7% | 171,000 | 7.6% | 436,000 | 19.2% | 1.6% |
| Construction | 8,478,000 | 333,000 | 3.9% | 540,000 | 6.4% | 873,000 | 10.3% | 3.1% |
| Manufacturing | 15,914,000 | 712,000 | 4.5% | 1,002,000 | 6.3% | 1,713,000 | 10.8% | 6.1% |
| Wholesale trade | 3,888,000 | 220,000 | 5.7% | 265,000 | 6.8% | 485,000 | 12.5% | 1.7% |
| Retail trade | 16,898,000 | 3,327,000 | 19.7% | 2,331,000 | 13.8% | 5,658,000 | 33.5% | 20.3% |
| Transportation, warehousing, utilities | 7,978,000 | 341,000 | 4.3% | 488,000 | 6.1% | 829,000 | 10.4% | 3.0% |
| Information | 2,970,000 | 122,000 | 4.1% | 108,000 | 3.6% | 231,000 | 7.8% | 0.8% |
| Finance, insurance, real estate | 9,333,000 | 229,000 | 2.5% | 348,000 | 3.7% | 577,000 | 6.2% | 2.1% |
| Professional, science, management services | 9,611,000 | 148,000 | 1.5% | 205,000 | 2.1% | 353,000 | 3.7% | 1.3% |
| Administrative, support, waste services | 5,811,000 | 756,000 | 13.0% | 732,000 | 12.6% | 1,488,000 | 25.6% | 5.3% |
| Educational services | 14,461,000 | 899,000 | 6.2% | 786,000 | 5.4% | 1,685,000 | 11.7% | 6.0% |
| Health care, social assistance | 21,163,000 | 1,915,000 | 9.0% | 1,934,000 | 9.1% | 3,848,000 | 18.2% | 13.8% |
| Arts, entertainment, recreational services | 2,994,000 | 561,000 | 18.7% | 440,000 | 14.7% | 1,001,000 | 33.4% | 3.6% |
| Accommodation | 1,736,000 | 372,000 | 21.4% | 313,000 | 18.0% | 685,000 | 39.5% | 2.5% |
| Restaurants | 10,032,000 | 3,572,000 | 35.6% | 2,313,000 | 23.1% | 5,885,000 | 58.7% | 21.1% |
| Other services | 5,896,000 | 830,000 | 14.1% | 966,000 | 16.4% | 1,796,000 | 30.5% | 6.4% |
| Public administration | 7,404,000 | 125,000 | 1.7% | 191,000 | 2.6% | 316,000 | 4.3% | 1.1% |
| Tipped occupations | ||||||||
| Nontipped | 142,827,000 | 13,435,000 | 9.4% | 11,134,000 | 7.8% | 24,568,000 | 17.2% | 88.2% |
| Tipped | 4,004,000 | 1,292,000 | 32.3% | 1,998,000 | 49.9% | 3,290,000 | 82.2% | 11.8% |
| Sector | ||||||||
| For-profit | 111,766,000 | 12,872,000 | 11.5% | 11,324,000 | 10.1% | 24,196,000 | 21.6% | 86.9% |
| Nonprofit | 12,979,000 | 889,000 | 6.8% | 846,000 | 6.5% | 1,735,000 | 13.4% | 6.2% |
| Government | 22,085,000 | 966,000 | 4.4% | 961,000 | 4.4% | 1,927,000 | 8.7% | 6.9% |
Notes: Values reflect the population estimated to be affected by the proposed change in the federal minimum wage. Wage changes resulting from scheduled state and local minimum wage laws are accounted for by EPI’s Minimum Wage Simulation Model. Totals may not sum due to rounding. Shares calculated from unrounded values. Directly affected workers will see their wages rise as the new minimum wage rate will exceed their current hourly pay. Indirectly affected workers have a wage rate just above the new minimum wage (between the new minimum wage and 115% of the new minimum). They will receive a raise as employer pay scales are adjusted upward to reflect the new minimum wage.
Source: Economic Policy Institute Minimum Wage Simulation Model; see Technical Methodology by Cooper, Mokhiber, and Zipperer (2019).
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Table 2 shows the estimated impact of the Raise the Wage Act of 2023 by state.
| State | Total workforce | Directly affected | Share directly affected | Indirectly affected | Share indirectly affected | Total affected | Share of the state workforce affected | Average annual wage increase of affected workers (2023$) | Total annual wage change (2023$, millions) | Percent change in average annual wages of affected workers |
|---|---|---|---|---|---|---|---|---|---|---|
| U.S. total | 146,831,000 | 14,727,000 | 10.0% | 13,131,000 | 8.9% | 27,858,000 | 19.0% | $3,100 | $86,352 | 12.1% |
| Alabama | 1,963,000 | 349,000 | 17.8% | 192,000 | 9.8% | 541,000 | 27.5% | $4,279 | $2,313 | 17.4% |
| Alaska | 330,000 | 21,000 | 6.4% | 32,000 | 9.7% | 53,000 | 16.1% | $1,876 | $100 | 6.5% |
| Arizona | 3,021,000 | 290,000 | 9.6% | 340,000 | 11.3% | 630,000 | 20.9% | $961 | $606 | 3.4% |
| Arkansas | 1,213,000 | 219,000 | 18.0% | 118,000 | 9.7% | 337,000 | 27.8% | $3,607 | $1,215 | 13.8% |
| California | 18,427,000 | * | * | * | * | * | * | * | * | * |
| Colorado | 2,681,000 | 161,000 | 6.0% | 231,000 | 8.6% | 392,000 | 14.6% | $1,018 | $399 | 3.7% |
| Connecticut | 1,706,000 | 14,000 | 0.8% | 35,000 | 2.1% | 50,000 | 2.9% | $6,471 | $321 | 22.8% |
| Delaware | 427,000 | 61,000 | 14.2% | 44,000 | 10.2% | 104,000 | 24.4% | $2,412 | $251 | 9.4% |
| District of Columbia | 363,000 | 3,000 | 0.7% | 4,000 | 1.1% | 7,000 | 1.8% | * | * | * |
| Florida | 8,925,000 | 1,135,000 | 12.7% | 1,188,000 | 13.3% | 2,323,000 | 26.0% | $1,233 | $2,863 | 4.3% |
| Georgia | 4,552,000 | 722,000 | 15.9% | 479,000 | 10.5% | 1,202,000 | 26.4% | $4,269 | $5,131 | 17.0% |
| Hawaii | 685,000 | * | * | * | * | * | * | * | * | * |
| Idaho | 721,000 | 112,000 | 15.5% | 76,000 | 10.5% | 188,000 | 26.0% | $3,519 | $661 | 14.5% |
| Illinois | 5,918,000 | 570,000 | 9.6% | 600,000 | 10.1% | 1,170,000 | 19.8% | $1,426 | $1,669 | 5.3% |
| Indiana | 2,976,000 | 407,000 | 13.7% | 314,000 | 10.5% | 721,000 | 24.2% | $3,506 | $2,528 | 14.7% |
| Iowa | 1,479,000 | 231,000 | 15.6% | 156,000 | 10.6% | 387,000 | 26.2% | $3,258 | $1,261 | 14.0% |
| Kansas | 1,341,000 | 191,000 | 14.3% | 136,000 | 10.1% | 327,000 | 24.4% | $3,619 | $1,184 | 15.1% |
| Kentucky | 1,825,000 | 311,000 | 17.0% | 172,000 | 9.4% | 483,000 | 26.5% | $4,156 | $2,007 | 17.6% |
| Louisiana | 1,900,000 | 420,000 | 22.1% | 191,000 | 10.1% | 611,000 | 32.1% | $5,174 | $3,159 | 20.9% |
| Maine | 600,000 | 34,000 | 5.7% | 72,000 | 12.0% | 106,000 | 17.7% | $1,285 | $136 | 5.0% |
| Maryland | 2,929,000 | 197,000 | 6.7% | 190,000 | 6.5% | 387,000 | 13.2% | $2,721 | $1,053 | 10.1% |
| Massachusetts | 3,399,000 | 30,000 | 0.9% | 440,000 | 13.0% | 471,000 | 13.8% | $1,859 | $875 | 7.2% |
| Michigan | 4,310,000 | 535,000 | 12.4% | 401,000 | 9.3% | 936,000 | 21.7% | $3,313 | $3,101 | 14.0% |
| Minnesota | 2,715,000 | 133,000 | 4.9% | 255,000 | 9.4% | 388,000 | 14.3% | $1,462 | $567 | 6.4% |
| Mississippi | 1,162,000 | 283,000 | 24.3% | 132,000 | 11.3% | 414,000 | 35.7% | $4,822 | $1,998 | 19.1% |
| Missouri | 2,694,000 | 346,000 | 12.9% | 299,000 | 11.1% | 646,000 | 24.0% | $2,403 | $1,552 | 9.3% |
| Montana | 452,000 | 64,000 | 14.1% | 49,000 | 10.9% | 113,000 | 25.0% | $2,514 | $284 | 10.5% |
| Nebraska | 922,000 | 121,000 | 13.1% | 73,000 | 7.9% | 194,000 | 21.0% | $2,212 | $428 | 9.2% |
| Nevada | 1,377,000 | 176,000 | 12.7% | 205,000 | 14.9% | 380,000 | 27.6% | $2,281 | $867 | 7.5% |
| New Hampshire | 668,000 | 71,000 | 10.6% | 53,000 | 8.0% | 124,000 | 18.6% | $3,289 | $409 | 14.7% |
| New Jersey | 4,232,000 | 253,000 | 6.0% | 493,000 | 11.7% | 746,000 | 17.6% | $1,867 | $1,392 | 6.8% |
| New Mexico | 890,000 | 139,000 | 15.6% | 107,000 | 12.1% | 246,000 | 27.7% | $3,057 | $753 | 11.6% |
| New York | 9,053,000 | 211,000 | 2.3% | 1,383,000 | 15.3% | 1,595,000 | 17.6% | $1,184 | $1,888 | 4.2% |
| North Carolina | 4,461,000 | 760,000 | 17.0% | 528,000 | 11.8% | 1,289,000 | 28.9% | $4,240 | $5,465 | 17.1% |
| North Dakota | 367,000 | 36,000 | 9.9% | 30,000 | 8.1% | 66,000 | 18.0% | $3,404 | $224 | 14.5% |
| Ohio | 5,193,000 | 724,000 | 13.9% | 548,000 | 10.5% | 1,272,000 | 24.5% | $2,994 | $3,807 | 12.6% |
| Oklahoma | 1,666,000 | 347,000 | 20.8% | 189,000 | 11.3% | 536,000 | 32.2% | $4,252 | $2,279 | 16.7% |
| Oregon | 1,828,000 | * | * | 141,000 | 7.7% | 141,000 | 7.7% | $626 | $88 | 2.3% |
| Pennsylvania | 5,763,000 | 724,000 | 12.6% | 508,000 | 8.8% | 1,232,000 | 21.4% | $3,968 | $4,890 | 17.2% |
| Rhode Island | 502,000 | 36,000 | 7.2% | 48,000 | 9.5% | 84,000 | 16.7% | $2,257 | $190 | 9.0% |
| South Carolina | 2,125,000 | 364,000 | 17.1% | 220,000 | 10.4% | 584,000 | 27.5% | $4,309 | $2,516 | 17.5% |
| South Dakota | 401,000 | 51,000 | 12.8% | 44,000 | 11.0% | 96,000 | 23.8% | $2,619 | $250 | 10.6% |
| Tennessee | 2,915,000 | 493,000 | 16.9% | 293,000 | 10.1% | 786,000 | 27.0% | $4,269 | $3,355 | 17.2% |
| Texas | 13,086,000 | 2,254,000 | 17.2% | 1,266,000 | 9.7% | 3,521,000 | 26.9% | $4,597 | $16,185 | 18.1% |
| Utah | 1,384,000 | 167,000 | 12.1% | 142,000 | 10.3% | 309,000 | 22.4% | $3,038 | $940 | 13.5% |
| Vermont | 292,000 | 21,000 | 7.3% | 24,000 | 8.4% | 46,000 | 15.7% | $1,606 | $74 | 6.5% |
| Virginia | 3,926,000 | 426,000 | 10.9% | 350,000 | 8.9% | 776,000 | 19.8% | $2,655 | $2,061 | 10.1% |
| Washington | 3,367,000 | * | * | * | * | * | * | * | * | * |
| West Virginia | 684,000 | 115,000 | 16.9% | 66,000 | 9.7% | 182,000 | 26.5% | $3,742 | $679 | 15.4% |
| Wisconsin | 2,754,000 | 355,000 | 12.9% | 239,000 | 8.7% | 594,000 | 21.6% | $3,474 | $2,063 | 15.6% |
| Wyoming | 260,000 | 39,000 | 15.1% | 26,000 | 9.8% | 65,000 | 24.9% | $4,288 | $278 | 17.4% |
Notes: Values reflect the population estimated to be affected by the proposed change in the federal minimum wage. Wage changes resulting from scheduled state and local minimum wage laws are accounted for by EPI’s Minimum Wage Simulation Model. Totals may not sum due to rounding. Shares calculated from unrounded values. Directly affected workers will see their wages rise as the new minimum wage rate will exceed their current hourly pay. Indirectly affected workers have a wage rate just above the new minimum wage (between the new minimum wage and 115% of the new minimum). They will receive a raise as employer pay scales are adjusted upward to reflect the new minimum wage. Values marked * cannot be displayed because of sample size restrictions.
Source: Economic Policy Institute Minimum Wage Simulation Model; see Technical Methodology by Cooper, Mokhiber, and Zipperer (2019).
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