2023 minimum wage by state

The federal minimum wage rate that stipulates employers pay employees $7.25 an hour has not been modified since 2009. This rate is laid out under the federal Fair Labor Standards Act (FLSA) and applies to businesses around the country unless state law requires a higher wage. While the United States minimum wage law has not changed, 24 states, as well as many cities and counties, are raising their minimum wage orders in 2022. Most of the state increases go into effect on January 1. However, a few states have stipulated that the orders won’t go into effect until later in the year. If your state’s wage order takes place later in the year, it will be highlighted to eliminate confusion. Review the list below, and then navigate to our state labor law guide center to learn more about federal, state, and local laws you must follow based on your location and industry. If you have more questions about staying compliant under state minimum wage laws, Homebase HR Pro can help. We’ll not only notify you when labor laws change in your area but also provide live access to certified HR experts who can answer your questions. ‍

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2023 minimum wage by state 

Arizona 

Arizona’s rate will increase to $12.80 for non-tipped employees based on the Consumer Price Index and $9.80 for tipped employees. The Flagstaff rate will increase to $15.50. Flagstaff city law stipulates that you may only pay tipped employees a cash wage of $3 less than the minimum wage if you can establish that the employee earned at least the minimum wage in tips for all hours worked. 

California 

California’s state law will raise the minimum wage rate to $14 for small employers with 25 or fewer employees and $15 for large employers. The state of California does not allow employers to pay a lower rate to tipped employees. There are several cities and counties in California that are also raising their rates. Businesses in these cities will have to abide by the law that requires a higher minimum wage: 

• Cupertino: $16.40 
• Daly City: $15.53 
• Los Altos: $16.40 
• Mountain View: $17.10 
• Oakland: $15.06 
• Palo Alto: $16.45 
• Petaluma: $15.85 
• Richmond: $15.54 
• San Diego: $15.00 
• San Mateo: $16.20 
• Santa Clara: $16.40
• Santa Rosa: $15.85 
• Sonoma: $16.00 for large employers, $15.00 for small employers
• Sunnyvale: $17.10 

Colorado 

Colorado will increase their rate to $12.56, persurant to annual increases based on the Consumer Price Index after also increasing it on January 1, 2021. The tipped employee rate increases to $9.54. In Denver, the rate will increase to $15.87 for standard employees and $11.75 for tipped employees. 

Connecticut

Connecticut’s plan to raise its minimum wage to $15 continues with an increase to $14 on July 1, 2022. The tipped rate is $6.38, but bartenders must be paid $8.23 for hours worked.

Delaware

The minimum wage rate in Delaware will increase to $10.50. The tipped employee rate is $2.23, pursuant to Delaware legislation. Note: Pursuant to current Delaware law, employers may pay youth employees under the age of 18 a rate of $0.50 less than the standard minimum wage rate for 90 consecutive calendar days. However, a recent change to the law stipulates that this provision will expire on December 29, 2021. 

Florida

On September 30, 2022, Florida will increase its rate to $11 for standard employees and $7.98 for tipped workers. This increase is part of the state’s plan to raise the rate to $15 by 2026. 

Illinois

Illinois is also in the middle of a plan to raise its minimum wage, with the goal being to raise it to $15 by 2025. The 2022 rate for standard employees will be $12 and $7.20 for tipped employees. Illinois does allow employers to compensate employees under the age of 18 a “youth wage,” as long as they work fewer than 650 hours in a calendar year. This rate will increase to $9.25. Note: Employers can pay new employees over the age of 18 a “training wage” for the first 90 days of employment. That wage is $0.50 lower than the standard rate, bringing it to $11.50 for 2022. 

Maine 

The government of Maine stipulates that the state minimum wage will increase to $12.75 for standard workers and $6.38 for tipped employees. The city of Portland will increase its non-tipped employee rate to $13.00, with the tipped employee rate increasing to $6.50. 

Maryland

The state of Maryland is raising the minimum wage at different rates for large and small employers. Large employers with 15 or more workers will be responsible for an increased $12.50 minimum wage, and employers with fewer than 15 workers must pay $12.20. The increase will continue until it reaches $15 in 2025. Montgomery County is raising its minimum wage to $15.00. 

Massachusetts

The rate for employees in Massachusetts is increasing to $14.25 until it finally reaches $15 per hour in 2023 pursuant to state law. Employers with tipped workers will be subject to a minimum wage rate of $6.15. This rate will also increase in tandem with the standard rate. 

Minnesota

Minnesota operates under a system that dictates minimum wage based on annual receipts for a business, and bases its increases to reflect inflation adjustments. Businesses with annual receipts of less than $500,000 will see an increased minimum wage rate of $8.42. If a business’s annual receipts are in excess of $500,000, the rate will increase to $10.33. Businesses with tipped employees must adhere to the standard rate of minimum wage, as Minnesota legislation prohibits a decreased rate based on earned tips. The city of Minneapolis is issuing a higher minimum wage increase. Small businesses will be subject to a minimum wage of $13.50 on July 1, 2022, while larger businesses must pay an increased rate of $15. Additionally, St. Paul minimum wage rate will continue to rise until it reaches $15 per hour, at which point the increases will match the adjusted inflation rate moving forward. Here are the 2022 rates based on the size of business:

• Businesses with 5 or fewer employees: $10.75
• Businesses with 6 to 100 employees: $12
• Businesses with 101-10,000 employees: $13.50
• Businesses with over 10,000 employees: $15

Missouri 

The state of Missouri legislation is dictating a standard minimum wage increase to $11.15, with a tipped minimum wage increase to $5.75. Note: Employers engaged in retail or service businesses whose annual gross income is less than $500,000 are not required to pay the state minimum wage rate. Tipped Employees must be paid at least half of the state minimum wage rate. However, if the tipped employee does not earn the rest of the minimum wage rate through tips, the employer must pay the difference. 

Montana

The state of Montana will issue a minimum wage increase in tandem with the new year, bringing the new rate to $9.20. Montana does not allow businesses to pay a lesser minimum wage to tipped employees. 

Nevada

Nevada’s rate will increase to $9.50 on July 1 for businesses that offer healthcare, and $10.50 for those that do not. Nevada does not allow a decreased rate for tipped employees. 

New Jersey

The New Jersey rate for businesses with 1-5 employees will increase to $11.90 and $13 for businesses with 6 or more employees. The minimum wage rate for tipped employees, pursuant to New Jersey law, will increase to $5.13. 

New Mexico

Pursuant to New Mexico legislation, the state minimum wage is increasing to $11.50 for standard employees. Tipped employees are entitled to a rate of $2.80. However, the City of Las Cruses opted to retain its own tipped minimum wage rates, increasing it to $ 4.60. 

New York

Pursuant to the New York State Minimum Wage Act, minimum wage rates in New York increase annually on December 31, 2021, until reaching $15.00 per hour. This year the rate increases to $13.20 for non-fast-food businesses outside of New York City (corporate fast-food restaurants and all businesses in NYC are currently subject to a $15 rate). Nassau, Suffolk, and Westchester counties will collectively increase their rates to $15. 

Ohio

Similar to several previously mentioned states, Ohio’s minimum wage legislation follows a business receipt bracket. For businesses with at least $342,000 in annual gross receipts, the new minimum wage is $9.30. For other businesses, the state follows the federal rate of $7.25. For businesses with minor employees (below the age of 18), the federal rate also applies. 

Oregon

Oregon legislators are increasing the state minimum wage to $13.50 on July 1, 2022. Non-urban counties will see an increase to $12.50, and the Portland Metro area will raise its rate to $14.75. 

Rhode Island

As Rhode Island moves toward an eventual $15 minimum wage rate, the 2022 rate will be $12.25, with a tipped rate of $3.89. 

South Dakota

The new South Dakota minimum wage for 2022 will be $9.50. The wage increases at the same rate as the Consumer Price Index. Legislation dictates that the tipped minimum wage will be $4.97. 

Vermont

Vermont’s annual minimum wage increase will raise the rate to $12.55, with an adjusted tipped rate of $6.28. 

Virginia

Virginia’s path to $12 continues in 2022 with an increased rate of $11. State legislators do not allow a decreased rate for tipped employees. 

Washington

The Washington minimum wage will increase to $14.49, with Seattle raising its rate to $17.27 for employers with more than 500 employees and for employers with fewer than 500 employees that don’t pay for benefits. The city is raising the rate to $15.75 for employers with 500 or fewer employees that pay tips and benefits.