A Comprehensive Overview of 2022 and 2023 Minimum Wage Changes
2022 Minimum Wage Changes
In the summer of 2022, multiple cities and counties in California raised...
9 mins
3993 Huntingdon Pike Suite 110 Huntingdon Valley, PA 19006 Mon - Fri: 8:30AM - 5:00PM
3993 Huntingdon Pike Suite 110 Huntingdon Valley, PA 19006 Mon - Fri: 8:30AM - 5:00PM
Eighteen states are raising their minimum wage in 2023, or that rate is increasing based on previously established annual increases. In some of these states, these rate changes do not take effect on January 1st; instead, they become law later in the year.
State |
2022 Minimum Wage |
2023 Minimum Wage (effective 1/1/23 unless noted) |
California |
$15.00 for businesses with 26+ employees |
$15.00 minimum will apply to all employers Annual increases begin 1/1/23 |
Connecticut |
$14.00 |
$15.00 effective 6/1/23 |
Delaware |
$10.50 |
$11.75 |
Florida |
$11.00 |
$12.00 effective 9/30/23 |
Illinois |
$12.00 |
$13.00 |
Massachusetts |
$14.25 |
$15.00 |
Michigan |
$9.87 |
$10.10 |
Minnesota |
$10.33 |
Annual increases begin 1/1/23 |
Missouri |
$11.15 |
$12.00 |
Montana |
$9.20 |
Annual increases begin 1/1/23 |
Nevada |
$9.50 |
$11.25 |
New Jersey |
$13.00 |
$14.00 (Businesses with fewer than 6 employees and seasonal employees pay $12.70) |
New Mexico |
$11.50 |
$12.00 |
Ohio |
$9.30 |
Annual increases begin 1/1/23 |
Oregon |
$13.50 |
Annual increases begin 7/1/23 |
Rhode Island |
$12.25 |
$13.00 |
Vermont |
$12.55 |
Annual increases begin 1/1/23 |
Virginia |
$11.00 |
$12.00 |
No, the Government last raised the federal minimum wage in 2009 from $6.55 per hour to $7.25 per hour. This base wage set by the federal government sets the standard for individual states to build upon, allowing each state to decide the minimum wage for its own citizens according to its own cost of living.
Some states have chosen to set their minimum wage higher than the federal minimum wage, while others have not. However, no state can set its minimum wage lower than the federal minimum wage of $7.25 per hour.
In 2023, Connecticut, Massachusetts, and California will tie for the highest rate at $15 per hour for all employers. Georgia and Wyoming have the lowest rates - in both states, employers only have to pay $5.15 per hour unless the employer is subject to the Fair Labor Standards Act (FLSA), in which case they default to the federal minimum wage. FLSA only applies to employers who make more than $500,000 per year or engage in interstate commerce.
Some employees are exempt federally from minimum wage requirements, including:
Additionally, some worker classifications have special rules federally. For example:
California's Pay Transparency Law will require employers to notify job applicants and employees about the pay scale for their job if requested, and they must provide it automatically in the job listing if they have more than 14 employees.
In Colorado, employers must prepare for Paid Medical and Family Leave (PFML). Employees who qualify for FMLA will get 12 weeks of paid leave funded through payroll taxes, which employees and employers share.
In New York, paid FMLA already exists. But in 2021, sick siblings will now be included as those individuals for which someone may qualify for FMLA in the state.
Regarding remote workforces, it is important to note that minimum wage requirements follow the employee, so if, for example, the employee works remotely in Rhode Island, then Rhode Island determines the minimum wage even if the employer is in California. In the days of hybrid workforces, employers must keep track of where employees actually work.
In some states, including California, Maine, New York and Washington, the minimum salary required to be classified as exempt from overtime is tied to the minimum wage and therefore will also increase on January 1, 2023.
While it certainly is not mandatory, evaluating all employees' pay rates when the minimum wage increases to retain good employees is important. It would be unjust for those earning more than minimum wage to suddenly receive only minimum wage; this should be addressed when evaluating pay.
State |
Basic Combined Minimum Wage |
Maximum Tip Credit |
Minimum Cash Wage |
$7.25 / hour |
$5.12 / hour |
$2.13 / hour |
|
$9.89 / hour |
No tip credit allowed |
||
$11.00 / hour |
$3.00 / hour |
$8.00 / hour |
|
$9.25 / hour |
$6.62 / hour |
$2.63 / hour |
|
$11.00 / hour (see 2 wage types) |
No tip credit allowed |
||
$11.20 / hour |
$3.02 / hour |
$8.08 / hour |
|
$10.10 / hour (see 2 wage types) |
$1.87 / hour |
$8.23 / hour |
|
$8.75 / hour |
$6.52 / hour |
$2.23 / hour |
|
$13.25 / hour |
$9.36 / hour |
$3.89 / hour |
|
$7.25 / hour |
$5.12 / hour |
$2.13 / hour |
|
$8.46 / hour |
$3.02 / hour |
$5.44 / hour |
|
$7.25 / hour |
$5.12 / hour |
$2.13 / hour |
|
$10.10 / hour |
$0.75 / hour |
$9.35 / hour |
|
$7.25 / hour |
$3.90 / hour |
$3.35 / hour |
|
$8.25 / hour |
$3.30 / hour |
$4.95 / hour |
|
$7.25 / hour |
$5.12 / hour |
$2.13 / hour |
|
$7.25 / hour |
$2.90 / hour |
$4.35 / hour |
|
$7.25 / hour |
$5.12 / hour |
$2.13 / hour |
|
$7.25 / hour |
$5.12 / hour |
$2.13 / hour |
|
$7.25 / hour |
$5.12 / hour |
$2.13 / hour |
|
$11.00 / hour |
$5.50 / hour |
$5.50 / hour |
|
$8.75 / hour |
$5.12 / hour |
$3.63 / hour |
|
$12.00 / hour |
$7.65 / hour |
$4.35 / hour |
|
$9.25 / hour |
$5.73 / hour |
$3.52 / hour |
|
$9.65 / hour (see 2 wage types) |
No tip credit allowed |
||
$7.25 / hour |
$5.12 / hour |
$2.13 / hour |
|
$8.60 / hour |
$4.30 / hour |
$4.30 / hour |
|
$8.50 / hour (see 2 wage types) |
No tip credit allowed |
||
$9.00 / hour |
$6.87 / hour |
$2.13 / hour |
|
$7.25 / hour (see 2 wage types) |
No tip credit allowed |
||
$7.25 / hour |
$4.00 / hour |
$3.25 / hour |
|
$10.00 / hour |
$7.37 / hour |
$2.63 / hour |
|
$7.50 / hour |
$5.37 / hour |
$2.13 / hour |
|
$11.80 / hour |
$3.95 / hour |
$7.85 / hour |
|
$12.00 / hour |
$4.35 / hour |
$8.65 / hour |
|
$15.00 / hour |
$5.00 / hour |
$10.00 / hour |
|
$7.25 / hour |
$5.12 / hour |
$2.13 / hour |
|
$7.25 / hour |
$2.39 / hour |
$4.86 / hour |
|
$8.55 / hour |
$4.25 / hour |
$4.30 / hour |
|
$7.25 / hour |
$5.12 / hour |
$2.13 / hour |
|
$10.75 / hour |
No tip credit allowed |
||
$7.25 / hour |
$4.42 / hour |
$2.83 / hour |
|
$7.25 / hour |
$5.12 / hour |
$2.13 / hour |
|
$10.50 / hour |
$6.61 / hour |
$3.89 / hour |
|
$7.25 / hour |
$5.12 / hour |
$2.13 / hour |
|
$9.10 / hour |
$4.55 / hour |
$4.55 / hour |
|
$7.25 / hour |
$5.12 / hour |
$2.13 / hour |
|
$7.25 / hour |
$5.12 / hour |
$2.13 / hour |
|
$7.25 / hour |
$5.12 / hour |
$2.13 / hour |
|
$10.78 / hour |
$5.39 / hour |
$5.39 / hour |
|
$7.25 / hour |
$5.12 / hour |
$2.13 / hour |
|
$12.00 / hour |
No tip credit allowed |
||
$8.75 / hour |
$6.13 / hour |
$2.62 / hour |
|
$7.25 / hour |
$4.92 / hour |
$2.33 / hour |
|
$5.15 / hour |
$3.02 / hour |
$2.13 / hour |
Information from minimum-wage.org
Don't be caught unaware; stay compliant and ensure correct payroll every time with a payroll partner who keeps track of all of this for you. It allows you to make decisions confidently regarding employee compensation. Contact us today to schedule a brief consultation with our highly trained professionals.
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3993 Huntingdon Pike Suite 110
Huntingdon Valley, PA 19006
Mon - Fri: 8:30AM - 5:00PM
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