Tipped minimum wage by state - 2023

The federal minimum wage laws that stipulate a $7.25 rate have not been modified since 2009. However, according to the Department of Labor (DOL), 25 states across the country are changing their labor laws and adding state minimum wage 2022 increases. While most of the state increases occur on January 1, 2022, a few states have stipulated that the orders won’t go into effect until later in the year. If your state’s minimum wage increase takes effect later in 2022, it will be highlighted in the list below in an effort to avoid any confusion. Inform yourself on the minimum wage changes 2022 will bring, and then visit our state employment law guide center to learn more about federal laws, state laws, and local laws you must follow based on your location and industry. 

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2022 minimum wage changes by state 

Arizona 

Arizona will increase the statewide minimum cash wage rate to $12.80 per hour starting in 2022 based on the Consumer Price Index. The minimum wage for service employees will remain at $9.80 per hour.

California 

Small employers who employ 25 or fewer employees must abide by the new California state minimum wage law order of $14 per hour. Employers with 26 or more employees need to comply with the increased standard rate of $15 per hour. California is one of 7 states that does not allow businesses of any kind to pay a lesser tipped rate. The following California city and county will increase their rates as well: 

• Belmont: $16.20  
• Daly City: $15.53 
• Hayward: $15.56 
• Novato: $15.53 
• San Diego: $15.00
• Santa Clara: $16.40
• Santa Rosa: $15.85 

Note: Los Angeles’ hourly wage rates will stay the same at $15.

Colorado 

The rate will change in Colorado to $12.56 per hour after also increasing on January 1, 2021. The tipped rate will increase to $9.54 per hour for the calendar year. The Denver local government is increasing the minimum wage to $15.87 per hour.  

Connecticut

The Connecticut minimum wage will increase to $14 per hour starting July 1, 2022.  The tipped rate is $6.38, but bartenders must be paid $8.23 for hours worked.

Delaware

The 2022 rate in Delaware will be increased to $10.50 per hour. The tipped minimum wage is $2.23 per hour.

Florida

Florida is changing their rate to $11 per hour on September 30, 2022, as part of a 6-year plan to increase it to $15.00 per hour. The tipped minimum wage is $6.98 per hour.

Illinois 

Illinois’ rate will increase to $12 per hour, with plans to increase it to $15 per hour by 2025. The rate for tipped employees is $7.20 per hour.

Maine

Maine’s rate will increase to $12.75 per hour, and the minimum wage for tipped employees increases to $6.38 per hour.

Maryland 

The rate in Maryland is increasing to $12.50 per hour for employers with at least 25 full-time employees. The increase will continue until it reaches $15 in 2025. Employers with less than 25 employees must comply with an increase of $12.20. The tipped employees rate remains the same at $3.63 per hour.

Massachusetts

The rate for employees in Massachusetts is increasing to $14.25 per hour until it finally reaches $15 per hour in 2023. The tipped minimum wage is also increasing to $6.15 per hour, and will increase in steps in tandem with the standard rate.

Minnesota

Minnesota legislators ruled that the rate will increase to $10.33 per hour in 2022 for large employers, and $8.42 per hour for small employers. Tipped employees must earn the standard wage, there is no minimum wage set for tipped workers.

Missouri

Missouri is increasing its wage in 2022 to $11.15 per hour for non-tipped employees. Missouri’s separate minimum wage rate for tipped employees is $5.575.

Michigan

Michigan minimum wage will increase to $9.87 per hour starting January 1, 2022. For tipped workers, the rate will also increase to $3.75.

Montana 

Montana residents will receive an increased rate of $9.20 per hour. Businesses that make over $110,000 annually must pay their tipped employees the standard minimum wage rate.However, if they make less than $110,000 annually, they are allowed to pay tipped employees $4 per hour. 

New Jersey

New Jersey’s rate will increase to $13 per hour. The tipped minimum wage is also increasing to $5.13.

New Mexico

New Mexico will increase their standard rate to $11.50 per hour in 2022. Tipped employees will see an increase to their minimum wage rate when it also rises to $2.80 per hour on January 1.

New York State 

The State of New York will increase its standard rate to $13.20 per hour in 2022New York workers who receive tips follow a separate pay structure based on what industry they are employed in.

Ohio

As of January 1, 2022, Ohio employees will receive an escalated pay of $9.30 per hour, and tipped employees will be paid an increased rate of $4.65 per hour.

Oregon

Oregon’s plan to increase the standard minimum wage rate until 2023 continues in 2022 with an increased minimum wage of $13.50 per hour taking effect July 1, 2022.

Rhode Island

Rhode island minimum wage will increase to $12.25 per hour. The rate for tipped workers however will stay the same at $3.89 per hour.

South Dakota 

South Dakota legislators increase the state rate—which will expand to $9.95 per hour in 2022—annually appropriately based on the Consumer Price Index laid out by the U.S. Department of Labor.

Vermont

According to the Vermont Department of Labor, the state’s minimum wage will increase in 2022 to $12.55 per hour. The minimum tipped wage for employees is $6.28 per hour.

Virginia

The Virginia minimum wage will increase to $11.00 per hour on January  1, 2022. The rate will increase each year until it reaches $12 per hour in 2023. The tipped minimum wage remains the same at $2.13 per hour.

Washington

Washington State officials approved a minimum wage increase to $14.49 per hour in 2022. The State of Washington does not allow businesses to pay tipped employees at a lower rate than the standard minimum wage.

Washington DC

Washington DC will increase minimum wage to $16.10 per hour, and tipped minimum wage to $5.35

2022 minimum wage rates that will remain the same

While many states are changing their minimum wage rate laws in 2022, 25 states are keeping the same rates they had in 2021. If your state is in the following list, you as a business owner do not need to worry about making any changes to your payroll.

Alabama

• $7.25 standard 
• $2.13 tipped 

Alaska

• $10.34 standard and tipped 

Arkansas 

• $11 standard 
• $2.64 tipped 

Georgia

• $7.25 standard 
  • $5.15 if not covered by federal regulations
• $2.13 tipped 

Hawaii

• $10.10 standard 
• $9.35 tipped

Idaho

• $7.25 standard 
• $3.35 tipped 

Indiana

• $7.25 standard 
• $2.13 tipped 

Iowa

• $7.25 standard 
• $4.35 tipped 

Kansas

• $7.25 standard 
• $2.13 tipped 

Kentucky

• $7.25 standard 
• $2.13 tipped 

Louisiana

• $7.25 standard 
• $2.13 tipped

Mississippi

• $7.25 standard 
• $2.13 tipped 

Nevada

• $9.75 standard 
• No tip credit allowed

New Hampshire

• $7.25 standard 
• $3.26 tipped 

North Carolina

• $7.25 standard 
• $2.13 tipped 

North Dakota

• $7.25 standard 
• $4.86 tipped 

Oklahoma

• $7.25 standard 
• $3.63 tipped

Pennsylvania

• $7.25 standard 
• $2.83 tipped

South Carolina

• $7.25 standard 
• $2.13 tipped 

Tennessee

• $7.25 standard 
• $2.13 tipped 

Texas

• $7.25 standard 
• $2.13 tipped 

Utah

• $7.25 standard 
• $2.13 tipped 

West Virginia

• $8.75 standard 
• $6.13 tipped 

Wisconsin

• $7.25 standard 
• $2.33 tipped 

Wyoming

• $7.25 standard 
• $2.33 tipped