Raising Some Questions
It’s frustrating to feel stuck at the same pay year after year—especially when you know you’re doing good work. If your boss hasn’t given you a raise in five years (especially one you think you deserve), we get that you’re probably wondering: is that even legal? Doesn’t he have to give me a raise at some point? Well, the answer might surprise you.
Employment Law Basics
To put it bluntly: most U.S. employers aren’t legally required to give raises. The law typically only requires they pay at least minimum wage. Unless you have a contract or union agreement that guarantees pay increases, your boss is within their rights to keep your salary the same.
But what about cost-of-living increases? At least those are mandatory, right?
Cost-of-Living Increases Aren’t Guaranteed
Many workers assume employers must give cost-of-living raises to keep up with inflation. In reality, most private companies don’t have to—unless your contract, union agreement, or state/local law specifically requires it. While COLAs are common in government jobs and pensions, for most workers they’re optional. And without them, inflation slowly eats away at your paycheck’s value.
Still, state and local governments sometimes step in with their own rules.
State Laws May Differ
Federal law doesn’t require raises, but states sometimes add their own rules. Some tie wage increases to inflation, while others set special rules for government workers or public contracts. That’s why it’s worth checking your state’s labor department for details where you live.
In fact, some states have automatic pay adjustments written right into law.
Automatic Minimum Wage Adjustments
Some states automatically raise their minimum wage each year based on inflation or cost of living. For example, California, Washington, Colorado, and Arizona all have built-in annual increases tied to consumer prices.
And it’s not just states—many cities set their own higher standards too.
City and County Rules
Certain cities go even further with their own rules. Seattle, San Francisco, and New York City all set higher minimum wages than their states, and many of them rise yearly with inflation.
For workers in construction or public projects, another set of laws applies.
Leonhard_Niederwimmer, Pixabay
Prevailing Wage Laws
In some states, prevailing wage laws require a higher pay on government-funded construction and public works projects. States like New York, Illinois, and Massachusetts set these wages, which can amount to guaranteed pay bumps for qualifying projects.
But even without special laws, fairness in how raises are handed out can raise legal questions.
When Everyone Else Gets a Raise But You Don’t
Legally, your boss can give raises to some people and not others—as long as the reason isn’t discrimination. If you’re denied a raise based on protected characteristics like race, gender, age, religion, disability, or national origin, that’s illegal. If it’s based on performance, seniority, or budget choices, it’s usually allowed—even if it feels unfair.
So what happens if you don’t have legal protections to lean on? That’s where strategy comes in.
Minimum Wage Rules Still Apply
If your pay has stayed flat but the minimum wage has gone up, your employer must at least keep your paycheck above that level. If you’re making less than your state or local minimum wage, that’s a legal violation worth reporting.
Salaried vs. Hourly Pay
If you’re hourly, you’re entitled to overtime pay for extra hours worked (unless you’re in an exempt category). If you’re salaried, your pay may legally stay the same for years—even if your workload increases—unless your contract says otherwise.
Contracts Change the Game
Did you sign an employment contract when you started? Contracts or union agreements may include raise schedules—if so, your employer is legally bound to follow them. Without one, you’re mostly at the mercy of company policy.
Look at Company Policy
If the law doesn’t guarantee you a raise, the next place to turn is your own workplace rules. Some employers spell out how raises work in employee handbooks or HR policies. If the policy promises annual reviews or merit increases, you can point to that when making your case.
And having a strong case starts with tracking your own contributions.
Track Your Own Performance
Document your achievements, contributions, and responsibilities. If you’ve taken on more work without a pay bump, you’ll have stronger leverage when you ask for a raise.
The timing of that ask can be just as important as the evidence you bring.
Timing Matters
Raises often happen at specific times of year—after performance reviews, during budget season, or at work anniversaries. If you missed the window, ask when the next opportunity comes up.
It also helps to know what people in your role are earning elsewhere.
Compare Industry Standards
Use resources like Glassdoor, Payscale, or the Bureau of Labor Statistics to find out if your salary is competitive. If you’re being underpaid compared to peers, you have more reason to ask for a change.
And if your company is thriving while your paycheck isn’t, that’s worth pointing out.
Consider the Company’s Health
If the company has been struggling financially, raises may be harder to come by. But if profits are strong and leadership is rewarding themselves, you may be justified in pushing harder.
Either way, how you frame the conversation matters a lot.
How to Ask for a Raise
Keep the conversation professional. Focus on your value, not just your needs. Use concrete examples of how you’ve helped the company grow, save money, or solve problems—and stay calm even if the answer isn’t what you hoped.
And if the answer is no, you still have some options.
What If They Say No?
If your boss won’t budge, ask about alternative benefits—extra vacation days, flexible hours, training opportunities, or bonuses. Sometimes perks can add real value even without a pay bump.
But if you’ve been stalled for years, it may be time to look at the bigger picture.
Look at Your Career Path
If you’ve been stagnant for 5 years, ask yourself: Is there room to grow here? Sometimes the best move isn’t squeezing out a raise—it’s moving to a new role or company where advancement is possible.
Networking can open those doors faster than you think.
Start Networking Now
Building a professional network gives you options. LinkedIn, industry events, and professional groups can connect you with people at companies that pay better.
Browsing job listings can also reveal just how much your skills are worth.
Explore New Job Listings
Checking current postings for your role can show you what’s out there. If job ads offer significantly higher pay, that’s evidence you may be undervalued.
And in some industries, collective action is another way to secure fair pay.
Unionizing or Collective Action
In some industries, unions help ensure raises are part of the deal. Even if you’re not unionized, talking to coworkers about shared concerns can carry more weight than going solo.
But if all else fails, sometimes the best option is a fresh start.
Know When to Move On
If your employer consistently refuses to recognize your value, it may be time to switch jobs. Most people get their biggest raises by changing companies, not staying put.
Even if you’re not ready to leave tomorrow, you still have more control than it feels like.
Final Thought
Your boss doesn’t legally have to give you a raise—but that doesn’t mean you’re stuck. Know your rights, know your worth, and explore your options. Even if you’ve been overlooked for years, you have tools to protect yourself and move forward.
You Might Also Like:
My boss created a fake employee who always wins “Employee of the Month.” Can we expose this?
