The following states will update their minimum wages effective January 1, 2023. Some jurisdictions schedule their changes at another point during the year, which we have noted below.
In addition to statewide minimum wages as outlined in this e-Alert, several cities and counties will also increase their minimum wages effective January 1, 2023. Some states that have local minimum wage rates include Arizona, California, Colorado, Maine, Maryland, Minnesota, New Mexico, and Washington. If an employee is subject to more than one minimum wage requirement (such as federal, state, and local), you should pay the rate most generous to the employee.
Alaska
The minimum wage will increase to $10.85 per hour.
Arizona
The minimum wage will increase to $13.85 per hour. The cash wage for tipped employees will increase to $10.85 per hour on January 1, 2023. If the combination of direct cash wages and tips falls below Arizona’s minimum wage, employers must make up the difference.
California
The minimum wage will increase to $15.00 per hour for all employers, regardless of size.
Colorado
The minimum wage will increase to $13.65 per hour.
Connecticut
Effective June 1, 2023, the minimum wage will increase to $15.00 per hour.
Delaware
The minimum wage will increase to $11.75 per hour.
Florida
Effective September 30, 2023, the minimum wage will increase to $12.00 per hour and $8.98 for tipped employees.
Illinois
The minimum wage will increase to $13.00 per hour.
Maine
The minimum wage will increase to $13.80 per hour.
Maryland
The minimum wage will increase to $13.25 per hour.
Massachusetts
The minimum wage will increase to $15.00 per hour.
Michigan
Effective February 1, 2023, the minimum wage will increase to $12.00 per hour.
Minnesota
The minimum wage will increase to $10.59 an hour for large employers and $8.63 an hour for other state minimum wages, including small employers, youth and training wages, as well as summer work travel exchange visitor program wages.
Missouri
The minimum wage will increase to $12.00 per hour.
Montana
The minimum wage will increase to $9.95 per hour.
Nebraska
The minimum wage will increase to $10.50 per hour.
Nevada
Effective July 1, 2023, the minimum wage will increase to $10.25 per hour for employees who receive health benefits and $11.25 per hour for employees who do not receive health benefits.
New Jersey
The minimum wage will increase to $14.13 per hour. For small employers (businesses with five or fewer employees) and seasonal employers, the minimum wage will increase to $12.93 per hour.
New Mexico
The minimum wage will increase to $12.00 per hour.
Ohio
The minimum wage will increase to $10.10 per hour for non-tipped employees and $5.05 per hour for tipped employees. The minimum wage will apply to employees of businesses with annual gross receipts of $371,000 or more per year.
Oregon
Effective July 1, 2023, the minimum wage rate will be adjusted to inflation based on Consumer Price Index (CPI).
Rhode Island
The minimum wage will increase to $13.00 per hour.
South Dakota
The minimum wage will increase to $10.80 per hour.
Vermont
The minimum wage will increase to $13.18 per hour.
Virginia
The minimum wage will increase to $12.00 per hour.
Tipped Employees
Some jurisdictions, such as Alaska, California, Minnesota, and Montana, don’t allow employers to apply a tip credit toward the minimum wage. In such cases, you must pay tipped employees the full minimum in direct cash wages. Check your state and local law for details.
Overtime Exceptions
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. As a reminder, state and federal law require that certain duties tests also be satisfied to qualify for exemption from overtime.
Employer Next Steps
- If HR Knowledge processes your payroll, please contact your Client Account Manager to inform them of any employees’ hourly rates that need to be changed to meet the new state minimum wage requirements.
- Employers should ensure they post the updated minimum wage notices in each work location. If you are a client enrolled in our Poster Elite e-update program, you will receive an update to print, and post based on the states you have a subscription with.
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This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this content, please contact HR Knowledge at 508.339.1300 or email us.
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