The federal minimum wage in the United States has remained stagnant at $7.25 per hour since 2009. This 16-year freeze marks the longest period without adjustment since the minimum wage was first established in 1938. As the cost of living continues to rise, this outdated figure has left many families struggling to meet basic needs.

In response, 30 states and the District of Columbia have enacted laws that set minimum wages above the federal level. These states typically adjust wages annually to align with inflation and living costs. However, states like Texas, which adhere to the federal baseline, have left many workers at a disadvantage.

Despite the state’s reliance on the federal minimum wage, some Texas cities have introduced measures to increase pay for their city employees and in some cases those with on contracts with the local government. Austin, Dallas, Houston, Fort Worth, and San Antonio are leading the charge with significant wage hikes for 2025.

With these increases, Texas’s major cities are beginning to compete with states like Washington, California, and New York, as well as the District of Columbia, where minimum wages range between $16 and $17 per hour. However, in the case of those places, the minimum wages apply to all workers and not just city employees or those with contracts with the local government.

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