The state of California is to raise the minimum wage there to $US10 an hour. New legislation will gradually raise the current minimum of $US8 an hour by 25% by 2016.
The measure was opposed by some business owners who warned it would force them to reduce hiring.
The BBC reports the federal minimum wage is $US7.25 an hour, although 19 states and Washington DC have a higher minimum.
The state senate passed the bill on a party-line vote on Thursday. The state assembly earlier passed a separate version.
Governor Jerry Brown said the minimum wage has not kept pace with rising costs in California.
