Virginia Governor Signs Law to Raise Minimum Wage to $15 per Hour by 2028

Background on Minimum Wage Changes The Economic Policy Institute reported that 17 states currently have minimum wages of at least $15 per hour, ranging from $15.

13 in Washington. These increases stem from a campaign by activists for higher wages that began over a decade ago. 25 in 2009. 25, including Georgia, Indiana, Iowa, Kansas, Kentucky, Pennsylvania, Texas, Utah, and Wisconsin.

Other states are considering further increases, such as proposals to raise wages above $20 per hour. In Maryland, a bill to increase the minimum wage from $15 to $25 stalled in committee and missed a legislative deadline. Holly Sklar, CEO of Business for a Fair Minimum Wage, stated in an email that minimum wage increases boost consumer spending, which supports businesses and the economy.

Sklar disagreed with projections of job losses from Virginia's law. The group advocates for wage hikes to address rising living costs.

Economic Research and Perspectives Research on minimum wage effects varies.

3% linked higher minimum wages to fewer jobs. The analysis indicated that employers may automate tasks or reduce hours in response to increased labor costs. A senior economist at the American Institute for Economic Research stated that Virginia's law may accelerate AI adoption in low-skill workplaces.

Earle noted that the change raises questions about hiring and future job automation. A marketing professor at New York University said that New York's economy grew after raising its minimum wage to $16. Critics have pointed to California as an example.

The Bureau of Labor Statistics estimated in December 2024 that California fast-food restaurants lost 6,166 jobs following a wage increase. Advocates maintain that such hikes reduce employee turnover and foster economic growth, while some economists highlight potential inflationary effects.