The term “living wage” conjures up a lot of thoughts, feelings and debate — especially lately. No matter your view on the topic, you should be aware of the various federal and state changes to minimum wages and salary threshold requirements that could affect your business.

Is the federal minimum wage changing in 2023?

The federal minimum wage is not changing in 2023. It will remain $7.25 per hour, which it has been since 2009.

Which state minimum wages are changing in 2023?

While the federal minimum wage isn’t changing next year, you may still have to increase your pay for entry-level workers based on state minimum wage changes. 

Check the list below to see if your state is increasing its minimum wage requirements in 2023; note that some states automatically adjust their minimum wage for inflation each year. Unless otherwise noted, the new wage requirements go into effect on Jan. 1, 2023:

  1. Alaska: The state's minimum wage will increase from $10.34 to $10.85 per hour.
  2. Arizona: The state's minimum wage will increase from $12.80 to $13.85 per hour.
  3. California: The state's minimum wage will increase to $15.50 per hour. California is also expanding the number of businesses that its minimum wage rules apply to. While they previously applied only to businesses with 26 or more employees, they will now apply to all California employers, regardless of employee count.
  4. Colorado: The state's minimum wage will increase from $12.56 to $13.65 per hour.
  5. Connecticut: Beginning June 1, 2023, Connecticut employers must raise their minimum wage from $14 to $15 per hour.
  6. Delaware: The state's minimum wage will increase from $10.50 to $11.75 per hour.
  7. District of Columbia: As of Jan. 1, 2023, the District's living wage increases to $16.50 per hour, with the minimum wage increasing from $16.10 to $17 per hour on July 1, 2023.
  8. Florida: Beginning Sept. 30, 2023, Florida employers must raise their minimum wage from $11 to $12 per hour.
  9. Illinois: The state's minimum wage will increase from $12 to $13 per hour.
  10. Maine: The state's minimum wage will increase from $12.75 to $13.80 per hour.
  11. Maryland: The state's minimum wage will increase from $12.50 to $13.25 per hour.
  12. Massachusetts: The state's minimum wage will increase from $14.25 to $15 per hour.
  13. Michigan: The state's minimum wage will increase from $9.87 to $10.10 per hour.
  14. Minnesota: Beginning Jan. 1, 2023, “large” Minnesota employers must raise their minimum wage from $10.33 to $10.59 per hour to account for inflation. “Small” employers must raise their minimum wage from $8.42 to $8.63 per hour. “Large” employers are those with annual gross revenues of $500,000 or more; “small” employers are those with less than $500,000 in annual gross revenue. Both increases represent a 2.5% jump from 2022’s rates. Note, however, that these state minimum wages do not apply to work performed in Minneapolis or St. Paul; those cities have higher minimum wages.
  15. Missouri: The state's minimum wage will increase from $11.15 to $12 per hour.
  16. Montana: The state's minimum wage will increase from $9.20 to $9.95 per hour.
  17. Nebraska: The state's minimum wage will increase from $9 to $10.50 per hour.
  18. Nevada: Beginning July 1, 2023, Nevada employers must raise their minimum wage from $9.50 to $11.25 per hour.
  19. New Jersey: The state's minimum wage will increase from $13 to $14 per hour for New Jersey employers with six or more employees.
  20. New Mexico: The state's minimum wage will increase from $11.50 to $12 per hour.
  21. New York: The state's minimum wage will increase from $13.20 to $14.20 per hour on Dec. 31, 2022.
  22. Ohio: The state's minimum wage will increase from $9.30 to $10.10 per hour for Ohio employers with annual gross revenues of $371,000 or more.
  23. Oregon: While new rates for 2023 have not been announced yet, any new rate will apply beginning July 1, 2023. In recent years, Oregon employers have seen an annual rate increase of 75 cents per hour. With the 2022 minimum wage set at $13.50, employers should be prepared for a minimum wage of $14.25 for standard areas, and corresponding changes for Portland metro and nonurban communities. Oregon has announced that employers can expect to pay employees in the Portland metro area “$1.25 over the standard minimum wage” and employees in nonurban areas “$1 less than the standard minimum wage” in 2023.
  24. Rhode Island: The state's minimum wage will increase from $12.25 to $13 per hour.
  25. South Dakota: The state's minimum wage will increase from $9.95 to $10.80 per hour.
  26. Vermont: The state's minimum wage will increase from $12.55 to $13.18 per hour for nontipped workers and from $6.28 to $6.59 per hour for tipped workers.
  27. Virginia: The state's minimum wage will increase from $11.99 to $12 per hour.
  28. Washington: The state's minimum wage will increase from $14.49 to $15.74 per hour.

States that are keeping their minimum wages in 2023

All other states are maintaining their current minimum wages:

  • Alabama
  • Arkansas
  • Georgia
  • Hawaii (though note the state will be increasing its minimum wage from $12 to $14 effective Jan. 1, 2024)
  • Idaho
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Mississippi
  • New Hampshire
  • North Carolina
  • North Dakota
  • Oklahoma
  • Pennsylvania
  • South Carolina
  • Tennessee
  • Texas
  • Utah
  • West Virginia
  • Wyoming
  • Wisconsin

Stay on top of your compliance obligations

With the rise of remote and hybrid work, it's more important than ever to stay on top of the minimum wage rules in the state(s) where you operate and have employees. If you have any questions or concerns, contact your benefits adviser or legal counsel.

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