For over a decade the Federal minimum wage remains at $7.25 per hour, but more than half the states and many cities, counties and locals have set increases effective January 1st, 2023 with a few announcing a change during 2023. The progress to $15.00 per hour marches on and a number of states and cities are now well beyond that. Areas in Washington state are even approaching $20.00 per hour. A list of each state/local that has announced a change in 2023, at the time of this publishing, 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, 2023 unless otherwise noted.
- Alaska: $10.85
- Arizona: $13.85 ($10.85 for tipped employees-$3 less than minimum wage)
- Flagstaff: $16.80 ($14.80 for tipped employees)
- Tucson: $13.85
- California: $15.50 (no longer a difference in large or small employers)
- Oakland: $15.97
- San Diego: $16.30
- San Jose: $17.00
- West Hollywood (new): $17.50 for businesses with 50 or more employees; $17.00 for businesses with 49 or fewer employees. Hotel employers $18.35 (no change)
- West Hollywood (new): (July 1, 2023) $18.86 for all businesses.
- Colorado: $13.65 ($10.62 for tipped employees)
- Denver: $17.29 ($14.27 for tipped employees)
- Connecticut: $15.00 (July 1, 2023)
- Delaware: $11.75
- Florida: $12.00 (September 30, 2023) ($8.98 for tipped employees)
- Illinois $13.00 ($7.80 for tipped employees)
- Chicago: $xx.xx (July 1, 2023) for businesses with 4 to 20 employees. Increase not determined as of publishing.
- Maine: $13.80 ($6.90 for tipped employees)
- Portland: $14.00 ($7.00 for tipped employees)
- Maryland $13.25 for businesses with 15 or more employees; $12.80 for businesses with 14 or fewer employees.
- Montgomery County: $15.00 (July 1, 2023) for businesses with 11 to 50 employees; $14.50 for businesses with 10 or fewer employees.
- Massachusetts: $15.00 ($6.75 for tipped employees)
- Michigan: $12.00* (February 20, 2023) ($10.80 for tipped employees) *Pending further judicial or legislative intervention
- Minnesota: $10.59 for businesses with annual gross revenue of $500,000 or more; $8.63 for businesses with annual gross revenue of less than $500,000
- Minneapolis: $15.19 for businesses with 101 or more employees; $13.50 for businesses with 100 or fewer employees.
- St. Paul: $15.19 for businesses with 10,001 or more employees; $15.00 for businesses with 101 to 10,000 employees, $13.00 for businesses with 6 to 100 employees, and $11.50 for businesses with five or fewer employees.
- Missouri: $12.00 ($6.00 for tipped employees)
- Montana: $9.95
- Nevada: $10.25 (July 1, 2023) for businesses offering qualified health insurance benefits, and $11.25 for employers that do not.
- New Jersey: $14.13; $12.93 for seasonal or less than 6 employees ($5.26 for tipped employees)
- New Mexico $12.00 ($3.00 for tipped employees)
- Santa Fe: $12.95
- Albuquerque: $7.20 for tipped employees
- Las Cruces: $4.78 for tipped employees
- New York: $14.20 (December 31, 2022)
- Ohio: $10.10 for large employers ($5.05 for tipped employees); $7.25 for small employers with gross receipts of less than $342,000 per year
- Oregon: $13.50 (July 1, 2023)
- Portland metro: $1.25 over the standard minimum wage (July 1, 2023) Employers in nonurban counties $1.00 less than the standard minimum wage
- Puerto Rico: $9.50
- Rhode Island: $13.00
- South Dakota: $10.80 ($5.40 for tipped employees)
- Vermont: $13.18 ($6.59 for tipped employees)
- Virginia: $12.00
- Washington (state): $15.74
- Seattle: $18.69 for businesses with 501 or more employees; $18.69 for businesses with 500 or fewer employees that don’t offer medical benefits; $16.50 for businesses with 500 or fewer employees that do offer medical benefits
- SeaTac $19.06
A question we are often asked is in regards to when to put the change into effect. Let’s take the example of a rate is to increase on January 1st. This means that it is for work performed on or after that date, and not based on the actual paydate. For example, if your weekly pay period is from 12/25/2022 to 12/31/2022, with a check date of January 6th, 2023, then all of those hours worked can be paid at the 2022 rate, even though it is being paid in 2023.
When it gets complicated is when your pay period crosses between two years. A situation occurs when your pay period straddles two different calendar years. For example, in the case of a biweekly pay period of 12/25/2022 through 1/7/2023 some days would need to be paid at the old rate and some 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. For those who process their payroll and timekeeping with us, rates can be 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 2023. 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.