One Minute Takeaway:
- Federal minimum wage is still $7.25, but more than 20 states will increase minimum wage in 2023.
- California has the highest minimum wage.
- Georgia and Wyoming have the lowest minimum wage.
Changes to state minimum wages in 2023.
For employers with employees in multiple states, keeping up with numerous minimum wage rate changes can be a daunting task. While some states are on a schedule for annual increases to eventually reach $15 an hour, 12 states still adhere to the federal minimum. Although the federal minimum wage of $7.25 has not budged since 2009, nearly half of the country increased their minimum wages for hourly workers after January 1, 2022, to compensate their employees, and more than twenty will provide additional increases going into 2023.
To ensure your organization is aware of the latest minimum wage requirements, Paycor has created a breakdown by state.
State Minimum Wage Rates 2022 vs. 2023
| State | 2022 Minimum Wage | 2023 Minimum Wage (effective 1/1/23 except as noted) |
|---|---|---|
| Alabama | $7.25 (Federal, no state minimum) | |
| Alaska | $10.34 | $10.85 |
| Arizona | $12.80 | $13.85 |
| Arkansas | $11.00 | |
| California | $15.00 for businesses with 26+ employees; $14 for businesses with 25 or fewer employees | $15.50 minimum wage will apply to all employers 1/1/23 |
| Colorado | $12.56 | $13.65 |
| Connecticut | $14.00 | $15.00 effective 6/1/23 |
| Delaware | $10.50 | $11.75 |
| Washington D.C. | $15.20 | |
| Florida | $11.00 | $12.00 effective 9/30/23 |
| Georgia | $5.15 (Employers subject to the Fair Labor Standards Act must pay the $7.25 Federal minimum wage) | |
| Hawaii | $10.10 | |
| Idaho | $7.25 | |
| Illinois | $12.00 | $13.00 |
| Indiana | $7.25 | |
| Iowa | $7.25 | |
| Kansas | $7.25 | |
| Kentucky | $7.25 | |
| Louisiana | $7.25 (Federal, no state minimum) | |
| Maine | $12.75 | $13.80 |
| Maryland | $12.50 | $13.25 |
| Massachusetts | $14.25 | $15.00 |
| Michigan | $9.87 | $10.10 |
| Minnesota | $10.33 | $10.59 Annual increases begin 1/1/23 |
| Mississippi | $7.25 (Federal, no state minimum) | |
| Missouri | $11.15 | $12.00 |
| Montana | $9.20 | $9.95 Annual increases begin 1/1/23 |
| Nebraska | $9.00 | $10.50 |
| Nevada | $9.50* | $11.25 effective 7/1/23 |
| New Hampshire | $7.25 (Federal, no state minimum) | |
| New Jersey | $13.00 | $14.13 (Businesses with fewer than 6 employees and seasonal employees pay $12.93) |
| New Mexico | $11.50 | $12.00 |
| New York | $13.20 (fast food– $15.00) | $14.20 |
| North Carolina | $7.25 (Federal, no state minimum) | |
| North Dakota | $7.25 (Federal, no state minimum) | |
| Ohio | $9.30 | $10.10 Annual increases begin 1/1/23 |
| Oklahoma | $7.25 | |
| Oregon | $13.50** | Annual increases begin 7/1/23 |
| Pennsylvania | $7.25 (Federal, no state minimum) | |
| Rhode Island | $12.25 | $13.00 |
| South Carolina | $7.25 (Federal, no state minimum) | |
| South Dakota | $9.95 | $10.80 |
| Tennessee | $7.25 (Federal, no state minimum) | |
| Texas | $7.25 (Federal, no state minimum) | |
| Utah | $7.25 (Federal, no state minimum) | |
| Vermont | $12.55 | $13.18 Annual increases begin 1/1/23 |
| Virginia | $11.00 | $12.00 |
| Washington | $14.49 | $15.74 |
| West Virginia | $8.75 | |
| Wisconsin | $7.25 (Federal, no state minimum) | |
| Wyoming | $5.15 (Employers subject to the Fair Labor Standards Act must pay the $7.25 Federal minimum wage) |
*Companies that provide employee health insurance can pay $1.00 less.
**Varies by geographical location and will increase based on the inflation rate.
The map below shows which states have changes in minimum wages in 2023.
You can find minimum wages for tipped employees, here.
Which States Are Increasing the Minimum Wage in 2023?
More than 20 states will raise their minimum wage in 2023. These states are:
- Alaska
- Arizona
- California (all)
- Colorado
- Connecticut
- Delaware
- Florida
- Illinois
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Missouri
- Montana
- Nebraska
- Nevada
- New Jersey
- New Mexico
- New York (Statewide)
- Ohio
- Oregon
- Rhode Island
- South Dakota
- Vermont
- Virginia
- Washington
In most of these states, the minimum wage will increase on January 1, 2023.
Is the Federal Minimum Wage Rising in 2023?
No. The federal minimum wage has remained $7.25 since 2009.
Which States Have an Upcoming Increase to $15 Minimum Wage?
The following states have passed legislation to reach a $15 minimum wage in 2023 and beyond.
- Connecticut (2023)
- Delaware (2025)
- Florida (2026)
- Illinois (2025)
- Maryland (2025)
- Massachusetts (2023)
- New Jersey (2024)
- Rhode Island (2025)
- Virginia (2026)
Which State Has the Highest Minimum Wage?
The state with the highest minimum wage in 2023 is California at $15.50. If Washington, D.C. were a state, it would have the highest minimum wage at $16.10.
Which State Has the Lowest Minimum Wage?
The two states with the lowest minimum wage are Georgia and Wyoming, both sitting at $5.15; however, employers in Georgia and Wyoming that are subject to the Fair Labor Standards Act must still pay the $7.25 Federal minimum wage.
For nearly 30 years, Paycor has been guiding our clients through big changes to federal, state, and local taxes as well as compliance. Check out our Resource Center for the latest compliance updates, industry trends, thought leadership, and best practices to help organizations achieve their vision and reach their potential.
Paycor is not a legal, tax, benefit, accounting, or investment advisor. All communication from Paycor should be confirmed by your company’s legal, tax, benefit, accounting, or investment advisor before making any decisions.
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