While the Federal minimum wage remains at $7.25 per hour, 27 states and many cities, counties and locals have set increases effective January 1st, 2022 with a few announcing a change during 2022. Many states continue their path to $15.00 per hour and you will now find places in Washington state that have a minimum wage over $17.00 per hour. A list of each state/local, along with the new hourly rate is listed below. Any state that does not have a minimum wage change scheduled is not listed.
All rates are effective January 1st, 2022 unless otherwise noted.
- Alaska: $10.34
- Arizona: $12.80 ($9.80 for tipped employees-$3 less than minimum wage)
- Flagstaff: $15.50
- Tucson: $13.00 (April 1, 2022)
- Arkansas: $11.00 (tipped minimum wage will remain at $2.63)
- California: $15.00 for businesses with 26 or more employees, and $14.00 for 25 or less;
- Oakland: $15.06
- San Diego: $15.00
- San Jose: $16.20
- West Hollywood (new): $15.50 for businesses with 50 or more employees; $15.00 for businesses with 49 or fewer employees. Hotel employers $17.64
- West Hollywood (new): (July 1, 2022) $16.50 for businesses with 50 or more employees; $16.00 for businesses with 49 or fewer employees.
- Colorado: $12.56 ($9.54 for tipped employees)
- Denver: $15.87
- Connecticut: $14.00 (July 1, 2022)
- Delaware: $10.50 Training and youth minimum wage rate of $8.75 will be eliminated on 12/29/2021.
- Florida: $11.00 (September 30, 2022) ($7.98 for tipped employees)
- Illinois $12.00 ($7.20 for tipped employees)
- Chicago: $14.50for businesses with 4 to 20 employees.
- Maine: $12.75 ($6.38 for tipped employees)
- Portland: $13.00 ($6.50 for tipped employees)
- Maryland $12.50 for businesses with 15 or more employees; $12.20 for businesses with 14 or fewer employees.
- Montgomery County: $14.50 (July 1, 2022) for businesses with 11 to 50 employees; $14.00 for businesses with 10 or fewer employees.
- Massachusetts: $14.25 ($6.15 for tipped employees)
- Michigan: $9.87 ($3.75 for tipped employees)
- Minnesota: $10.33 for businesses with annual gross revenue of $500,000 or more; $8.42 for businesses with annual gross revenue of less than $500,000
- Minneapolis: $15.00 (July 1, 2022) for businesses with 101 or more employees; $13.50 for businesses with 100 or fewer employees.
- St. Paul: $15.00 (July 1, 2022) for businesses with 10,001 or more employees; $13.50 for businesses with 101 to 10,000 employees, $12.00 for businesses with 6 to 100 employees, and $10.75 for businesses with five or fewer employees.
- Missouri: $11.15 ($5.58 for tipped employees)
- Montana: $9.20
- Nevada: $9.50 (July 1, 2022) for businesses offering qualified health insurance benefits, and $10.50 for employers that do not.
- New Jersey: $13.00; $11.90 for seasonal or less than 6 employees ($5.13 for tipped employees)
- New Mexico $11.50 ($2.80 for tipped employees)
- Santa Fe: Increase expected in March 2022, but not announced as of publishing.
- New York: $13.20 (December 31, 2021) ($11.00 for tipped service employees and $8.80 for tipped food service employees)
- Nassau, Suffolk, and Westchester Counties: (12/31/2022) $15.00 ($12.50 for tipped service employees and $10.00 for tipped food service employees)
- Ohio: $9.30 for large employers; $7.25 for small employers with gross receipts of less than $342,000 per year ($4.65 for tipped employees)
- Oregon: $13.50 (July 1, 2022)
- Portland metro: $14.75 (July 1, 2022) Employers in nonurban counties $12.50
- Rhode Island: $12.25
- South Dakota: $9.95 ($4.98 for tipped employees)
- Vermont: $12.55 ($6.28 for tipped employees)
- Virginia: $11.00
- Washington (state): $14.49
- Seattle: $17.27 for businesses with 501 or more employees; $17.27 for businesses with 500 or fewer employees that don’t offer medical benefits; $15.75 for businesses with 500 or fewer employees that do offer medical benefits
- SeaTac $17.53
A question we are often asked is in regards to the timing of the rate change. A rate change takes place on January 1st, means that it is for work performed on or after that date. It is not based on the date the wages are paid. For example, if your biweekly pay period is from 12/18/2021 to 12/31/2021, with a check date of January 5th, 2022, all of those hours worked would be paid at the 2021 rate, even though it is being paid in 2022. A situation occurs when your pay period straddles two different calendar years, and a few days needs to be paid at the old rate and a few days at the new. This may cause a nightmare of work if your timekeeping/payroll system cannot handle assigning rates based on the day worked. The easiest solution would be to pay the entire pay period at the new rate. Yes, one may see this as ‘overpaying’ the employees, but in most cases the added administrative work involved may overshadow the additional wages paid. With PayMaster HCM time & labor and payroll, rates are assigned on a daily basis, so mid-pay period rate changes are never an issue.
The following 20 states are all remaining at the Federal minimum wage level of $7.25 for any FLSA subject employers. They either have no minimum rate set, or it is lower than the federal $7.25 rate. A rate that has been in place since July 24th, 2009. Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, Wyoming.
A final note. If your state has enacted a rate change, this means that you will need to update your state labor poster.
If your state is not listed, check with your state’s department of labor to confirm there was no rate change for 2022. The data listed is for general informational purposes only and should not be used as legal or professional advice. Please contact your state and local agency for more information regarding your State Minimum Wage as well as any exceptions that may exist.
While I make every attempt to ensure the accuracy and reliability of the information provided in this article, the information is provided “as-is” without warranty of any kind. PayMaster, Inc and Romeo Chicco do not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information contained. Consult with your CPA, Attorney, and/or HR Professional.