The current federal minimum wage rate is $7.25 per hour.
However, several states have adopted minimum wage rates higher than the federal rate. When both the state rate and the federal rate apply, employers must pay their employees the higher rate - The following states have announced new minimum wage rates for 2023:
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Highlights
- The minimum rate in California no longer depends on the employer’s size. California announces $15.50 Minimum Wage Rate for 2023.
- States that update their wage rates to reflect the cost of inflation will have substantial minimum wage rate increases.
Important Dates
Dec 31, 2022: The minimum wage rate outside of New York City, Long Island and Westchester increases to $14.20 per hour
Jan. 1, 2023: New minimum wage rates for 17 states
Feb. 19, 2023: New minimum wage rate for Michigan, unless the court decision is overruled
June 1, 2023: New minimum wage rate in Connecticut
July 1, 2023: New minimum wage rate in Nevada
Sept. 30, 2023: New minimum wage rate in Florida
Minimum Wage Rate by State
The table below provides a high-level summary of minimum wage rates by state and important provisions that regulate how these rates apply:
JURISDICTION |
2023 RATE |
EFFECTIVE |
TIP RATE/NOTES |
Alabama |
$7.25 |
Already in effect |
No state minimum wage rate. The federal rate applies. |
Alaska |
$10.34 |
Already in effect |
Tips do not count toward the minimum wage. |
Arizona |
$13.85 |
Jan. 1, 2023 |
$10.85 ($3 below minimum wage rate) for tipped employees. |
Arkansas |
$11.00 |
Already in effect |
$2.63 for tipped employees. The state rate applies to employers with four or more employees. |
$15.50 |
Jan. 1, 2023 |
California does not allow employers to use a tip credit. Visit the California Department of Industrial Relations website for state wage orders. |
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Colorado |
$13.65 |
Jan. 1, 2023 |
$10.63 for tipped employees |
Connecticut |
$15.00 |
Jan. 1, 2023 |
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D.C. |
$16.10 |
Already in effect |
$5.35 for tipped employees. |
Delaware |
$11.75 |
Jan. 1, 2023 |
$2.23 for tipped employees. |
Florida |
$12.00 |
Sept. 30, 2023 |
$8.98 for tipped employees. |
Georgia |
$7.25 |
Already in effect |
A $5.15 state rate applies only to workers not covered by the FLSA (very limited exception). |
Hawaii |
$12.00 |
Already in effect |
The maximum allowed tip credit toward the minimum wage is 75 cents per hour. |
Idaho |
$7.25 |
Already in effect |
$3.35 for tipped employees. |
Illinois |
$13.00 |
Jan. 1, 2023 |
The state rate applies to employers with four or more employees. Tip credit cannot exceed 40% of the applicable minimum wage.
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Indiana |
$7.25 |
Already in effect |
$2.13 for tipped employees. |
Iowa |
$7.25 |
Already in effect |
$4.35 for tipped employees. |
Kansas |
$7.25 |
Already in effect |
$2.13 for tipped employees. |
Kentucky |
$7.25 |
Already in effect |
$2.13 for tipped employees. |
Louisiana |
$7.25 |
Already in effect |
No state minimum wage rate. The federal rate applies. |
Maine |
$12.75 |
Already in effect |
$6.38 for tipped employees. |
Maryland |
$13.25 |
Jan. 1, 2023 |
The state rate applies to employers with 15 or more employees.
$12.80 for employers with 14 or fewer employees. Different rates may apply for Montgomery and Prince George counties. |
Massachusetts |
$15.00 |
Jan. 1, 2023 |
$6.75 for tipped employees. |
Michigan |
$12.00 |
Feb. 19, 2023 |
$9.60 for tipped employees. On July 19, 2022, the Michigan Court of Claims held in Mothering v. Nessel that amendments enacted to the state's minimum wage law by the state legislature in 2018 violate the state constitution and the original ballot measure as adopted by the legislature must go into effect. Employers should continue to monitor the Michigan Department of Labor and Economic Opportunity's website for updates on this fluid development and prepare to adjust their payroll as necessary to comply with the new minimum wage rate requirements by the deadlines mentioned above. |
Minnesota |
$10.59/$8.63 |
Jan. 1, 2023 |
No tip credit allowed. The higher rate applies to large employers ($500,000 or more in annual gross revenue). The $8.63 rate applies to:
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Mississippi |
$7.25 |
Already in effect |
No state minimum wage rate. The federal rate applies. |
Missouri |
$12.00 |
Jan. 1, 2023 |
$6.00 (50% of the current minimum rate) for tipped employees. |
Montana |
$9.95/$4.00 |
Jan. 1, 2023 |
No tip credit, meal credit or training wage is allowed. The lower rate applies to businesses with gross annual sales of $110,000 or less that are not covered by federal minimum wage law. |
Nebraska |
$9.00 |
Already in effect |
$2.13 for tipped employees. |
Nevada |
$11.25/$10.25 |
July 1, 2023 |
The higher rate applies to employees without health benefits. No tip credit is allowed. |
New Hampshire |
$7.25 |
Already in effect |
Tipped employees must receive 45% of the applicable rate. |
New Jersey |
$14.13 |
Jan. 1, 2023 |
The state rate applies to employers with six or more employees. Additional rates may apply to:
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New Mexico |
$12.00 |
Jan. 1, 2023 |
$3 for tipped employees. |
New York |
$15.00/$14.20 |
Dec. 31. 2022 |
The minimum wage rate in New York varies by location and industry:
Additional rates may apply under specific industry wage orders. Visit the New York Department of Labor website for more minimum wage rate information. |
North Carolina |
$7.25 |
Already in effect |
$2.13 for tipped employees. |
North Dakota |
$7.25 |
Already in effect |
$4.86 for tipped employees. |
Ohio |
$10.10 |
Jan. 1, 2023 |
$5.05 for tipped employees. Employers that gross less than $371,000 must pay their employees no less than the current federal minimum wage rate. |
Oklahoma |
$7.25/$2.00 |
Already in effect |
The higher rate applies to employers with 10 or more full-time employees at any one location and employers with annual gross sales over $100,000; all other employees not covered by the FLSA are subject to the state minimum wage of $2 per hour. |
Oregon |
$13.50 |
Already in effect |
No tip credit allowed. The following minimum wage rates also apply:
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Pennsylvania |
$7.25 |
Already in effect |
$2.83 for tipped employees. |
Rhode Island |
$13.00 |
Jan. 1, 2023 |
$3.89 for tipped employees. |
South Carolina |
$7.25 |
Already in effect |
No state minimum wage rate. The federal rate applies. |
South Dakota |
$10.80 |
Jan. 1, 2023 |
$5.40 for tipped employees. |
Tennessee |
$7.25 |
Already in effect |
No state minimum wage rate. The federal rate applies. |
Texas |
$7.25 |
Already in effect |
$2.13 for tipped employees. |
Utah |
$7.25 |
Already in effect |
$2.13 for tipped employees. |
Vermont |
$12.55 |
Already in effect |
$6.28 for tipped employees. |
Virginia |
$12.00 |
Jan. 1, 2023 |
The minimum wage for tipped employees in Virginia is the same as the minimum wage for all other employees. |
Washington |
$15.74 |
Jan. 1, 2023 |
No tip credit allowed. Workers who are 14 or 15 years old may be paid 85% of the state minimum wage rate or $13.38 per hour. |
West Virginia |
$8.75 |
Already in effect |
The state rate applies to employers with six or more employees. Employers can take a tip credit of up to 70 percent of the state rate. |
Wisconsin |
$7.25 |
Already in effect |
$2.33 for tipped employees. |
Wyoming |
$5.15 |
Already in effect |
$2.13 for tipped employees. The $7.25 federal rate applies to employers covered by the FLSA. |
Links and Resources
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This Legal Update is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.
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