In 2025, 23 states will raise their minimum wage due to the growing cost of living, but there remains uncertainty about whether Louisiana will follow suit. Currently, Louisiana’s minimum wage is aligned with the federal rate of $7.25 per hour, a figure that has remained unchanged since 2009. While some states are moving toward higher wages to help residents cope with rising living costs, Louisiana remains one of the five states that do not have a state-specific minimum wage law, instead adopting the federal standard.

As of 2024, the cost of living in Louisiana has significantly outpaced the purchasing power of the minimum wage, which has decreased by about 25% over the past 13 years. Despite this, Louisiana has no immediate plans to raise its minimum wage, though local advocates are pushing for change.

In contrast, 23 states across the nation have announced plans to increase their minimum wages in 2025. States like California, Colorado, and Illinois will see significant increases, with some rates rising by more than 50 cents an hour. The full list of states raising their minimum wage includes:

• Alaska: $11.73 raising to $11.91
• Arizona: $14.35 raising to $14.70
• California: $16 raising to $16.50
• Colorado: $14.42 raising to $14.81
• Connecticut: $15.69 raising to $16.35
• Delaware: $13.25 raising to $15
• Illinois: $14 raising to $15
• Maine: $14.15 raising to $14.65
• Michigan: $10.33 raising to $10.56
• Minnesota: large and small employers raising to $11.13
• Missouri: $12.30 raising to $13.75
• Montana: $10.30 raising to $10.55
• Nebraska: $12 raising to $13.50
• New Jersey: $15.13 raising to $15.49
• New York (upstate): $15 raising to $15.50
• New York: $16 raising to $16.50
• Ohio: $10.45 raising to $10.70
• Rhode Island: $14 raising to $15
• South Dakota: $11.20 raising to $11.50
• Vermont: $13.67 raising to $14.01
• Virginia: $12 raising to $12.41
• Washington: $16.28 raising to $16.66

Meanwhile, Louisiana, along with other states that follow the federal minimum wage, has no immediate plans to increase wages. These states include Alabama, Georgia, and Mississippi, among others.

What This Means for Construction Owners

For construction owners, the rise in minimum wages in other states could have significant implications, especially in terms of labor costs and project budgeting. As minimum wage increases make a broader impact across the country, owners in states like Louisiana may need to consider the potential for future wage hikes, which could affect their workforce costs. While Louisiana has not raised its minimum wage yet, it may eventually follow the trend set by other states, requiring construction owners to adjust financial planning and operational strategies. As labor costs rise, owners will need to explore ways to improve operational efficiency, manage project timelines, and ensure that workers are paid fair wages while maintaining the financial feasibility of projects.