$15 Minimum Wage Won't Be a Reality for Most Americans Until 2025, Even if It Passes

Democrats may be poised to pass a plan to increase the federal minimum wage to $15 per hour; however, the immediate impact on Americans' paychecks would be much smaller, and it'd be four years before most of the country reaches the $15 threshold.

President Joe Biden's $1.9 trillion package includes a plan to gradually increase the federal minimum wage, starting with an increase to $9.50 in 2021.

employees already make $15 per hour and California, Connecticut and Massachusetts will make the increase in 2023.

New Jersey's minimum wage will increase to $15 in 2024 for most employers, followed by employers with fewer than six employees in 2026.

Under the American Rescue Plan Act of 2021, minimum wage hourly rates will increase to $11 in 2022, $12.50 in 2023, $14 in 2024 and $15 in 2025.

The immediate increase to $9.50 would impact employees in 25 states, where the minimum wage is lower than the proposed increase.