Over half of all states in the country are set to offer higher minimum wage rates in 2023, which many workers look forward to.
This comes as the minimum wage at a federal level still stands at $7.25 per hour, which is the same rate in place since 2009.
However, many states and cities across the US have their own minimum rates in place, and a majority of them are set to increase them in 2023.
Twenty-six states have announced that they will enforce higher minimum wages in 2023, with an additional state possibly seeing an adjustment in July, as per a study by Wolters Kluwer Legal and Regulatory US’ payroll experts.
Out of the 26, 23 states and Washington, D.C. have already started implementing the higher rates on Jan. 1, per the Economic Policy Institute. These increases are set to affect 8 million workers across states, with rates going up at a range from 23 cents to $1.50 per hour.
Washington state is set to provide the highest minimum wage rate at $15.74 per hour. Those under 16 who work in the said state will get an hourly rate of $13.38, or 85% of the minimum rate adults get.
In D.C., the minimum rate is set to be $16.10 per hour.
States Increasing Their Minimum Wage Rates in 2023:
- AK – from $10.34 to $10.85 per hour.
- AZ – from $12.80 to $13.85 per hour.
- CA – minimum wage goes up to $15.50 for all employers, regardless of size.
- CO – from $12.56 to $13.65 per hour.
- CT – from $14 to $15 per hour; set to take effect on June 1, 2023.
- DE – from $10.50 to $11.75 per hour, based on legislation approved in July 2021 to increase the minimum wage to $15.00 by 2025 (S.B. 15, L. 2021).
- FL – from $10.00 to $11.00 per hour, up from $10.00. The state adjusts wage rates every year based on inflation. However, due to a constitutional amendment approved by voters in November 2020, General Elections will cause the minimum wage to go up to $12.00 on Sept. 30, 2023, and to $15.00 by 2026.
- IL – from $12.00 to $13.00 per hour, with the minimum rate set to reach $15 in 2025.
- ME – from $12.75 to $13.80 per hour.
- MD – goes up to $12.80 for workers with small employers and $13.25 for those working with large employers.
- MA – goes up to $15.00 per hour.
- MI – from $9.87 to $10.10 per January 1, 2023; minimum wage rate likely to go up to $13.03 on February 19, 2023.
- MN – from $10.33 to $10.59 per hour for workers of large employers with an annual gross volume of sales not less than $500,000; from $8.42 to $8.63 per hour for workers of small employers.
- MO – from $11.15 to $12.00 per hour
- MT – $9.95 per hour for employees of businesses with annual gross sales of over $110,000.
- NV – from $10.50 to $11.25 per hour for employees not receiving health benefits; from $9.50 to $10.25 per hour for workers receiving health benefits; set to take effect on July 1, 2023.
- NJ – from $13.00 to $14.13 per hour for most employees; direct-care workers in long-term healthcare centers have minimum wages set $3 higher than the state’s.
- NM – $11.50 to $12.00 per hour.
- NY – minimum wages are tiered or varied per area: NYC, Nassau, Suffolk, and Westchester counties to go up to $15.00; $14.20 for all other areas in the state. Additionally, minimum wage rates for home care aides are $2 more than the state’s basic minimum hourly rate. Workers in fast food places have a set minimum wage of $15.00 per hour. Airport workers working with minimum wage will receive $19.00.
- OH – from $9.30 to $10.10 per hour for workers of businesses that have annual gross receipts of $372,000. People working for smaller companies and workers aged 14 and 15 receive a minimum wage tied to the federal rate.
- OR – minimum wage is tiered per area: Metro Portland’s minimum is at 14.75 per hour, rural areas’ minimum is at $12.50 per hour, and the state’s “standard” minimum wage is at $13.50. From July 1, 2023, Portland’s minimum wage rate will be $1.25 over the standard minimum wage. Meanwhile, the non-urban rate will be set $1 above the standard minimum.
- RI – from $12.25 to $13.00 per hour, with the minimum wage set to reach $15.00 per hour in 2025.
- SD – from $9.95 to $10.80 per hour, up 85 cents from $9.95 per hour.
- VT – from $12.55 to $13.18 per hour.
- VA – from $11.00 to $12.00 per hour.
- WA – minimum goes up to $15.74 per hour. Workers under 16 years old will receive 85% of the adult minimum wage.
Washington, D.C., and 13 other states have set their minimum wages based on the consumer price index, a government statistic measuring the average change consumers pay for specific goods and services.
“There’s quite a few states across the country that will be seeing quite big jumps in the minimum wage because of the higher rate of inflation this past year,” said Deirdre Kennedy, senior payroll analyst at Wolters Kluwer.
The rest of the US will continue to phase in minimum wage hikes by passing them through legislation. The same states that didn’t announce increases in 2023 still set their base pay to the federal rate of $7.25 per hour.
Other states will continue to phase in increases passed through legislation. States that are not seeing minimum wage hikes in 2023 still tie their base pay to the $7.25 per hour federal rate.