The past year has brought many challenges, including those associated with rising inflation and cost-of-living increases. With such concerns top of mind, many states are increasing their required minimum wage rates. Employers should be aware of the following minimum wage increases set to take effect at the end of this year or in 2023. The increases discussed below do not cover tipped workers, other special classes of employees or those mandated by local law. Employers should review their current compensation practices and consult with appropriate counsel to ensure compliance with upcoming rate increases.

Alaska

The Alaska minimum wage will increase from $10.34 per hour to $10.85 per hour, effective Jan. 1.

Arizona

The Arizona minimum will increase from $12.80 per hour to $13.85 per hour, effective Jan. 1.

California

The California minimum wage was previously tiered based on employer size. This year, for example, employers with 25 employees or fewer were subject to a $14 per hour minimum wage, while employers with 26 or more employees were subject to a $15 per hour minimum wage. Effective Jan. 1, however, employers of all sizes are subject to a $15.50 per hour minimum wage requirement.

Colorado

The Colorado minimum wage will increase from $12.56 per hour to $13.65 per hour, effective Jan. 1.

Connecticut

The Connecticut minimum wage will increase from $14 per hour to $15 per hour, effective June 1.

Delaware

The Delaware minimum wage will increase from $10.50 per hour to $11.75 per hour, effective Jan. 1.

Florida

The Florida minimum wage will increase from $11 per hour to $12per hour, effective Sept. 30, 2023.

Illinois

The Illinois minimum wage will increase from $12 per hour to $13 per hour, effective Jan. 1.

Maine

The Maine minimum wage will increase from $12.75 per hour to $13.80 per hour, effective Jan. 1.

Maryland

The Maryland minimum wage will increase from $12.50 per hour to $13.25 per hour, effective Jan. 1.

Massachusetts

The Massachusetts minimum wage will increase from $14.25 per hour to $15 per hour, effective Jan. 1.

Michigan

The Michigan minimum wage will increase from $9.87 per to $10.10 per hour, effective Jan. 1.

Minnesota

Minnesota uses a tiered system for establishing minimum wage rates. As of Jan. 1, the minimum wage will increase from $8.42 per hour to $8.63 per hour for small employers (those with annual gross revenue of less than $500,000) and from $10.33 per hour to $10.59 per hour for large employers (those with annual gross revenues of $500,000 or more).

Missouri

The Missouri minimum wage will increase from $11.15 per hour to $12 per hour, effective Jan. 1.

Montana

The Montana minimum wage will increase from $9.20 per hour to $9.95 per hour, effective Jan. 1.

Nebraska

The Nebraska minimum wage will increase from $9 per hour to $10.50 per hour, effective Jan. 1.

Nevada

Nevada uses a tiered system for establishing minimum wage rates. The lower tier rate may be used when an employer offers qualifying health benefits to an employee. If such benefits are not offered, employers must pay at the higher tier rate.

Effective July 1, the lower tier rate will increase from $9.50 per hour to $10.25 per hour. The higher tier rate will increase from $10.50 per hour to $11.25 per hour.

New Jersey

The New Jersey minimum wage will increase from $13.00 per hour to $14.13 per hour for most employers effective Jan. 1. Employers with less than 6 employees can expect rates to increase from $11.90 per hour to $12.70 per hour.

New Mexico

The New Mexico minimum wage will increase from $11.50 per hour to $12.00 per hour, effective Jan. 1.

New York

New York sets minimum wage rates by location. The minimum wage currently is $15 per hour for large and small employers in New York City, as well as for employers of all sizes in Long Island and Westchester County. The minimum wage for the rest of the state will increase from $13.20 per hour to $14.20 per hour, effective Dec. 31, 2022.

Ohio

The Ohio minimum wage will increase from $9.30 per hour to $10.10 per hour, effective Jan. 1.

Oregon

Oregon sets minimum wage rates by location. The current minimum wage rates are $12.75 per hour for the “Standard” geographic area, $14 per hour for the Portland Metro area, and $12 per hour for Nonurban Counties. Effective July 1, the Standard minimum wage will be adjusted based on the Consumer Price Index for All Urban Consumers, the Portland Metro rate will increase to $1.25 over the new Standard rate, and the Nonurban Counties rate is expected increase to $1 below the new Standard rate.

Rhode Island

The Rhode Island minimum wage will increase from $12.25 per hour to $13 per hour, effective Jan. 1.

South Dakota

The South Dakota minimum wage will increase from $9.95 per hour to $10.80 per hour, effective Jan. 1.

Vermont

The Vermont minimum wage will increase from $12.55 per hour to $13.18 per hour, effective Jan. 1.

Virginia

The Virginia minimum wage will increase from $11per hour to $12per hour, effective Jan. 1.

Washington

The Washington minimum wage will increase from $14.49 per hour to $15.74 per hour, effective Jan. 1.

Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. The author has provided the links referenced above for information purposes only and by doing so, does not adopt or incorporate the contents. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.

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