Midyear State Minimum Wage Rate Updates: July 1, 2025

As we head into the summer months, employers must prepare for another round of minimum wage rate updates in states, counties, and cities across the United States.  

While most states update their wage rates at the beginning of the year, two states and Washington D.C. will increase their minimum wage on July 1, 2025.  

Alaska Minimum Wage in 2025

Alaska’s minimum wage will increase on July 1, 2025, after Ballot Measure 1 passed during the 2024 General Election. Ballot Measure 1 impacts the state’s minimum wage, paid sick leave, and captive audience laws.  

Under the new minimum wage schedule, Alaska’s minimum wage increases from $11.91 to $13.00 on July 1, 2025.  

Alaska prohibits employers from taking a tipped credit, so there is no separate tipped employee wage.  

Oregon Minimum Wage in 2025

Oregon has a unique, three-tiered system of minimum wage rates that updates on July 1 of each year. The applicable minimum wage tier depends on the employee’s workplace location within the state.  

Effective July 1, 2025, the wage rates in the three-tiered system of Oregon are as follows: 

• Portland Metro Area – $16.30 
• Standard Counties – $15.05 
• Non-Urban Counties – $14.05 

Portland Metro’s minimum wage applies to workers within the “urban growth boundary” in the state, which includes parts of Clackamas, Multnomah, and Washington counties.  

The standard minimum wage applies to workers in Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, and Yamhill counties as well as parts of Clackamas, Multnomah, and Washington that are outside the urban growth boundary described above.  

The non-urban minimum wage applies to workers in Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler Counties. 

Like Alaska, Oregon also prohibits taking a tip credit, so the state has no tipped employee wage. 

Washington D.C. Minimum Wage in 2025

The nation’s capital will also see a minimum wage update on July 1, 2025, as follows:

• $17.95
• Remains at $10.00 (tipped employees)

Washington D.C.’s mayor signed the Tipped Minimum Wage Increase Clarification Emergency Amendment Act of 2025 on June 30, 2025, which delayed the tipped employee wage increase of $12 to Oct. 1, 2025, after it was originally set to take effect on July 1. The tipped employee wage in D.C. now remains at $10 per hour.

As a reminder, Washington D.C. voters approved a ballot measure, known as Initiative 82, back in 2022, which gradually increases the tipped employee wage until it’s equal to the standard wage on July 1, 2027.