Record Number of U.S. Workers Faced Minimum Wage Violations in 2025

Researchers at the Cleveland Federal Reserve examined Census Bureau figures and found that in 2025 a record 5 % of non-exempt employees in the nation’s ten most populous states were paid less than the minimum wage, translating to roughly 5.8 million workers experiencing outright violations and about 6.5 million overall under-payments. The average weekly shortfall was around $95, down from a 2023 peak of over $110 but still far above historic levels.

The surge is driven largely by states with higher statutory minima—California ($16.90), Florida ($14), New York ($16) and Illinois ($15). Researchers point to inadequate enforcement, noting that seven states had no wage investigators and 26 had fewer than ten in 2018. Federal recovery efforts reclaimed over $1.5 billion in stolen wages between 2021 and 2023, while the federal floor remains at $7.25 per hour, unchanged since 2009. A 2021 Pew poll showed strong public support for a $15 minimum, and President Joe Biden’s failed attempt to raise the federal rate underscores the political divide.