The hikes take effect in the following states on January 1: Alaska, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont and Washington, plus Washington, DC.

Some states, such as Nevada and Oregon, have increases set for July 1. Florida’s minimum wage will go up on September 30.

With the increase, Washington will continue to have the highest minimum wage of all states at $16.28, up from $15.74. Meanwhile, Hawaii will see the largest increase in its minimum wage – from $12 to $14.

However, Washington, DC, will continue to have the highest minimum wage in the country at $17.05, up slightly from last summer, when it was raised to $17. Another wage hike in Washington, DC, is scheduled for July.

Student loans, 401(k) and financial aid

A sign calling for student loan debt relief is seen in front of the Supreme Court as the justices are scheduled to hear oral arguments in two cases involving President Joe Biden's bid to reinstate his plan to cancel billions of dollars in student debt in Washington, U.S., February 28, 2023.
A sign calling for student loan debt relief is seen in front of the Supreme Court as the justices are scheduled to hear oral arguments in two cases involving President Joe Biden’s bid to reinstate his plan to cancel billions of dollars in student debt in Washington, DC, in February. Nathan Howard/Reuters

Student loan payments may affect how much people are able to save for retirement, but starting January 1, a new retirement law allows student loan payments to boost 401(k)s for some workers. Under the new law, Secure 2.0, employers can match their employees’ qualifying student loan payments with a contribution into the employee’s employer-sponsored retirement account.

The Department of Education also recently updated the Free Application for Federal Student Aid, better known as the FAFSA. The form is used to determine financial aid eligibility for the 2024-2025 academic year, and the updated version, released Sunday, is shorter and easier to fill out. It is also expected that many low-income borrowers will be eligible for more financial assistance.

CNN