Federal Minimum Wage Stagnates 16 Years Amid Rising Living Costs

The federal minimum wage in the U.S. has remained at $7.25 per hour since 2009, losing significant buying power amid rising living costs, with many states maintaining or defaulting to this level, resulting in financial struggles for low-wage workers. Some states and cities have enacted or proposed much higher minimum wages, such as California’s $20 minimum for large fast-food chains, which increased wages by about 8 percent but also reduced fast-food employment by roughly 3 percent, illustrating the complex trade-offs involved. Meanwhile, Oklahoma faces a contentious proposal to tie its minimum wage to the cost of living in high-cost urban areas like San Francisco, which critics warn could lead to job losses and economic disruption in the lower-cost state. Colorado is strengthening wage and hour enforcement by expanding employer liability, including extending personal liability to minority owners with significant control, and allowing penalties for noncompliance, though it permits some penalty waivers under specific conditions. These developments reflect a growing tension between efforts to raise wages to meet living costs and concerns about the economic impact on employment and business operations.