Oxfam’s 2025 index highlights federal and state-level backsliding on labor policy against the backdrop of an increasingly regressive second Trump administration
Ahead of Labor Day, Oxfam, the global organization fighting inequality to end poverty and injustice, released the seventh edition of its Best States to Work Index (BSWI), a robust database and interactive map that measure policies supporting working families in all 50 states, the District of Columbia and Puerto Rico. This year, the District of Columbia again earned the top spot in the index as the “best” state for workers, followed closely by California (#2), Oregon (#3), New York (#4), and Washington (#5). By contrast, North Carolina falls at the bottom of the index as the “worst” state for the fifth year in a row, followed by Mississippi (#51), Alabama (#50), Georgia (#49), and Tennessee (#48).
The index tracks 27 policies across three dimensions—wages, worker protections, and rights to organize—that seek to capture which states have stepped in to fill the gaps left by federal inaction to support low-wage workers and working families. In many ways, 2025 has been a year of backsliding. Geographic inequality within the U.S. continues to widen, as many states have rolled back hard-won protections for low-wage workers, working families, and even children. Roughly one third of states (17) now have weakened child labor protections by lowering the age of working, extending the hours children can work, and/or removing the requirement for parental consent. Just two years ago in 2023, only four states had rolled-back child labor laws.
“Now more than ever, it’s crucial that policymakers step up to protect workers and their families. So far this year, we’ve seen the Trump administration callously slash life-saving programs left and right—from humanitarian and development aid across the world, to Medicaid and food assistance for people here in the U.S. Comprehensive workers’ rights and robust labor policies are part of a larger social safety net that can benefit everyone, and states can and should support their workers in the face of this administration’s attacks on working families and marginalized communities,” said Abby Maxman, President and CEO of Oxfam America.
For the most part, state rankings have stayed within a few points of the 2024 index, underscoring the importance of federal policy change to move the needle for all workers, regardless of where in the U.S. they live. But as the federal government continues to weaken foundational labor standards like collective bargaining rights for federal workers, many state lawmakers have followed suit with similarly regressive policies. For example, this year voters approved new paid sick leave policies in multiple states through ballot initiatives; however, some governors either fully or partially revoked these protections. In Nebraska (#22), the governor signed a law significantly narrowing the terms of who qualifies for paid sick leave ahead of the October implementation deadline. Missouri’s (#25) governor went even further, signing a bill that gutted Proposition A, which provided paid sick leave and raised the minimum wage in Missouri.
Oxfam’s research consistently shows a strong correlation between states that perform well in the BSWI and key measures of well-being, including lower poverty and food insecurity, reduced infant mortality, higher gross domestic product (GDP) per capita and median household incomes, and stronger unionization rates.
Together with the BSWI, Oxfam also released the fifth edition of the Best States for Working Women (BSWW), which ranks states based on policies that either directly or disproportionately support women workers, such as equal pay, flexible scheduling, and paid leave. In this Index, Oregon is the “best” state for working women, followed by New York (#2), California (#3), the District of Columbia (#4), and Illinois (#5).
The Best States to Work Index is meant to inspire a race to the top for all states and serve as an advocacy tool to help policymakers identify areas for improvement. Workers need more robust protections at both the state and federal levels. Oxfam recommends a suite of urgent policy initiatives to help support workers and their families, including:
Raise Wages: Oxfam calls on policymakers to raise the wage at both the state and federal levels. Subminimum tipped wages should be abolished, minimum wage exclusions of certain workers must end, and the minimum wage needs to be lifted.
Strengthen Worker Protections: We need stronger worker protections at the state and federal levels, including paid family and medical leave, strengthened equal pay laws, paid pumping breaks, stronger child labor laws, and protections for domestic workers.
Protected Rights to Organize: The federal government must protect and expand workers’ rights to organize and collectively bargain. States must repeal “right-to-work" laws, which undermine worker power; protect public employees’ rights to collectively bargain; and extend organizing rights to excluded workers.
Oxfam is a global organization that fights inequality to end poverty and injustice. We offer lifesaving support in times of crisis and advocate for economic justice, gender equality, and climate action. We demand equal rights and equal treatment so that everyone can thrive, not just survive. The future is equal. Join us at oxfamamerica.org.
/ENDS
Notes to editors:
Download the full report, “Best States to Work in the U.S. 2025,” here.
Explore the BSWI 2025 interactive map and state scorecards here.
Explore the “Best States for Working Women” interactive map here.
Both Missouri and Nebraska have hollowed out provisions on sick leave passed by voters in November 2024. In June 2025, Nebraska’s governor signed a bill narrowing the terms of who qualifies for paid sick leave. In July of this year, Missouri’s governor signed a law overturning provisions of Proposition A, which would have provided paid sick leave and raised the minimum wage in the state.