Minimum Wages are Increasing

Minimum Wages are Increasing

Payroll is complicated, and the laws that govern employment eligibility, wages, and taxes are complex. Laws vary from state to state, and so does the minimum wage. Even before rising inflation, many states were on track to raise their minimum wage. To help companies stay abreast of the minimum wage changes, we’ve put together a list of states that have announced an increase to their minimum wage. Keep in mind that other states plan to boost their minimum wage later in 2023.

Effective October 1, 2022

Hawaii

  • Hourly minimum wage: $12.00 (up from $10.10) 

Effective December 31, 2022

New York

  • Hourly minimum wage New York City Employers and New York City fast-food workers: $15.00 (unchanged)
  • Hourly minimum wage Nassau, Suffolk, and Westchester counties: $15.00 (unchanged)
  • Hourly minimum wage for the remainder of the state: $14.20 (up from $13.20)

Effective January 1, 2023

Alaska

  • Hourly minimum wage: $10.85 (up from $10.34)

Arizona

  • Hourly minimum wage: $13.85 (up from $12.80) 
  • Tipped employee hourly minimum cash wage: $10.85 (up from $9.80) based on a maximum tip credit of $3.00.

California

  • Hourly minimum wage: $15.50 (up from $15.00) 

Colorado

  • Hourly minimum wage: $13.65  (up from $12.56) 
  • Tipped employee minimum wage $10.63 (up from $9.54)

    Delaware

    • Hourly minimum wage: $11.75 (up from $10.50) 
    • Minimum Cash Wage $2.23 (unchanged) based on a maximum tip credit: $9.52 (up from $8.27) 

    District of Columbia

    • Minimum Cash Wage $6.00 (up from $5.35) based on a tip credit: $10.10  (down from $10.75) 

    Illinois

    • Hourly minimum wage: $13.00 (up from $12.00) 
    • Tipped-worker minimum hourly cash wage: $7.80 (up from $7.20) based on a minimum tip credit of $4.80.

    Maine

    • Hourly minimum wage: $13.80 (up from $12.75) 
    • Tipped Employee hourly minimum: $6.90 (up from $6.38)
    • Portland Hourly minimum wage: $14.00 (up from $13.00)

    Maryland

    • Employers with at least 15 employees’ hourly minimum wage: $13.25 (up from $12.50). 
    • Employers with no more than 14 employees’ hourly minimum wage: $12.80 (up from $12.20). 
    • Employers with at least 15 employees Tipped Employee hourly minimum: $3.63 based on a maximum tip credit of $9.62 (up from $8.87).
    • Employers with no more than 14 employees Tipped Employee hourly minimum: $3.63 based on a tip credit of $9.17 (up from $8.57).

    Massachusetts

    • Hourly minimum wage: $15.00 (up from $14.25) 
    • Tipped Employee hourly minimum: $6.75 (up from $6.15) based on a tip credit of $8.25.

      Minnesota

      • Large employers hourly minimum wage Indexed for Inflation: $10.59 (up from $10.33)
      • Small employers hourly minimum wage Indexed for Inflation: $8.63 (up from $8.42)

      Missouri

      • Hourly minimum wage: $12.00 (up from $11.15)

      Montana

      • Hourly minimum wage Indexed for Inflation: $9.95 (up from $9.20)

      Nebraska

      • Hourly minimum wage: $10.50 (up from $9.00)

        New Jersey

        • Small employer minimum wage $12.93 (up from $11.90)
        • Seasonal employers hourly minimum wage: $12.93 (up from $11.90)
        • Agricultural employers hourly minimum wage: $12.01 (up from $11.05)
        • General hourly minimum wage: $14.13 (up from $13.00)
        • General Tipped Employee hourly minimum: $5.26 (up from $5.13) based on a tip credit of $8.87 (up from $7.87)

        New Mexico

        • Hourly minimum wage: $12.00 (up from $11.50)
        • Tipped Employee hourly minimum: $3.00 (up from $2.80) based on a tip credit of $9.00 (up from $8.70)

        Ohio

        • Hourly minimum wage, employers with annual gross receipts of at least $371,000: $10.10 (up from $9.30)
        • Hourly minimum wage, employers with annual gross receipts less than $371,000: $7.25
        • Tipped Employee hourly minimum: $5.05 (up from $4.65)

        Rhode Island

        • Hourly minimum wage: $13.00 (up from $12.25)
        • Tipped Employee hourly minimum: $3.89 based on a maximum tip credit of $8.36 

        South Dakota

        • Hourly minimum wage: $10.80 (up from $9.95)
        • Tipped Employee hourly minimum: $5.40 (up from $4.975) 

        Vermont

        • Hourly minimum wage: $13.18 (up from $12.55)
        • Tipped Employee hourly minimum: $6.59 (up from $6.28)

        Virginia

        • Hourly minimum wage: $12.00 (up from $11.00)
        • Tipped Employee: As of May 1, 2021, if the employee does not receive the equivalent of the hourly state minimum wage in tips, the employer must pay the employee to make up the difference.

        Washington

        • Hourly minimum wage: $15.74 (up from $14.49)

        Effective February 19, 2023

        Michigan

        • Hourly minimum wage: $12.00 (up from $9.87) 
        Connect with one of our consultants today for more information and assistance with payroll. 

        Minimum Wages are Increasinghttps://www.cbiz.com/Portals/0/Images/CBIZ_HCM_article_minimum_wage-1.png?ver=5dr21QswveiJXrrwjFrdNw%3d%3dhttps://www.cbiz.com/Portals/0/Images/CBIZ_HCM_minimum_wage.png?ver=TPROJr7aHD92XgeqvNjZIA%3d%3dMany States will raise their minimum wage on January 1, 2023, we’ve put together a list of States that have announced an increase to their minimum wage2022-10-12T16:00:00-05:00Many States are raising their minimum wage, here is a list of states with plans to make a minimum wage increase in the near future. Employee ManagementPayroll ServicesYes