What was the new federal minimum wage amount after the last increase and when did it take effect?
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Executive summary
The most recent reporting in the provided sources says the federal minimum wage was increased from $7.25 to $9.50 per hour, with most outlets saying the change took effect in mid-November 2025 (dates reported include November 12 or November 15, 2025) [1] [2] [3]. Sources agree the tipped subminimum rose to $5.50 and that states and cities continue to set higher local floors [2] [1] [4].
1. What the sources say: a mid‑November federal increase to $9.50
Multiple news summaries and site explainers in the search set report that the federal hourly minimum rose to $9.50 in late 2025, ending a 16‑year freeze at $7.25 [1] [2] [3]. Those accounts present the new federal floor as taking effect in November 2025, with specific implementation dates cited by different outlets—November 12 in one explainer and November 15 in another [2] [3].
2. Tipped workers and the new tipped subminimum
Reporting in these sources notes an explicit change for tipped workers: the federal tipped minimum (previously $2.13) was raised to $5.50 per hour, while employers may still use tip credits provided that total pay meets the new $9.50 federal minimum [2] [1]. The coverage emphasizes that the higher tipped base seeks to reduce income volatility for service workers [1] [2].
3. Variation and minor date discrepancies across outlets
There is not a single uniform effective date in the collected reporting. Some sites say the federal hike must be implemented by November 12, 2025, while others say it begins November 15, 2025 [2] [3]. Several summaries and guides place rollout windows in October–December 2025 or say employers will have short compliance timelines [5] [6] [7]. The discrepancy is visible across the sample and indicates reporting differences about the compliance cutoff [5] [7] [3].
4. Where federal action sits relative to states and cities
Even with a federal change to $9.50, many states and localities already have higher minimums; coverage stresses employers must pay whichever standard—federal, state, or local—is higher [4] [8]. Several sources emphasize that dozens of states, cities and counties are phasing in their own increases for 2025–2026, and that the federal move does not override higher state/local floors [4] [9] [8].
5. Policy context and competing perspectives
Analysts cited in this collection frame the 2025 federal increase as the largest shift after a long freeze and as part of broader legislative efforts or proposals [5] [10]. Think tanks and advocates estimate millions would be affected by escalators or larger proposed bills; for example, the Economic Policy Institute estimated impacts for proposals that would have raised the floor much higher over time [10]. Conversely, other summaries and historical notes point out longstanding debates about job effects and inflation adjustments tied to federal increases [11] [10].
6. What these sources do not resolve
Available sources do not mention a single definitive official federal government press release or Department of Labor rule text among the provided results that pins an exact universal effective date; instead, reporting relies on news summaries and explainers that give either November 12 or November 15 as the operative date [2] [3]. The sample also does not include the statutory language of any enacted law showing the effective date—those texts are not present in the set (not found in current reporting).
7. Practical takeaway for workers and employers
If you are paid at or near the federal floor, the sources advise expecting $9.50/hour as the new federal floor and a $5.50 tipped base beginning in mid‑November 2025, while checking your state or local minimum because those may be higher and control pay obligations [1] [2] [8]. Employers are urged to update payroll systems, post updated FLSA notices, and ensure tip credits don’t leave tipped workers under $9.50 per hour [2] [3].
Limitations: this account strictly reflects the provided search results and cites only them; it highlights inconsistencies in reported effective dates and notes the absence of the primary legal text or an official DOL posting within this set (p1_s4; [3]; not found in current reporting).