Hundreds of thousands of the lowest-paid workers in New York and New Jersey will get a pay hike on January first.
In New Jersey, the minimum wage will rise one dollar, to $8.25, and will be indexed to inflation for the first time.
In New York, the minimum wage will increase 75 cents, to $8.00. It will then rise in phases to $9 by 2016.
The National Employment Law Project predicts hundreds of millions of dollars in increased economic activity as a result of workers spending from their bigger paychecks.
Workers in eleven other states, including Connecticut, Florida, and Ohio, will see their pay rise as well.
One group that's missing out on the benefit is tipped workers, like waiters and busboys. Their base rate will stay the same in New York – at least for now. New Jersey has no minimum wage for tipped workers.
The minimum wage will also increase in 11 other states on New Year's Day - Connecticut, Rhode Island, Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Vermont and Washington.