Minimum Wage by State for 2023 and Beyond

Minimum Wage By State
Payroll
Minimum Wage By State
Maddy Osman
Contributor
10
min read
March 8, 2023

As the cost of living continues to rise in the U.S., many critics argue that the $7.25 per hour federal minimum wage won't cut it.


And while the federal government hasn't changed its minimum wage rate since 2009, many states have been increasing their minimum wage over the years to support their citizens. 


Keeping up with these changes almost every year can be challenging, especially if you have employees in multiple states.


But what, exactly, is the minimum wage in all 50 states? We'll cover all that and more, so let's dive in!

What Is the Minimum Wage in All 50 States?

The minimum wage differs from state to state since the cost of living varies a lot across the country. Most states (and even cities) have their own minimum hourly wage rate, with most being higher than the federal rate. 


Here are the minimum wages for every state:

Minimum Wage by State
StateMinimum WageTipped Minimum WageDate it IncreasesNotes
Alabama$7.25
(no state minimum)		$2.13N/AN/A
Alaska$10.85$10.85 Jan. 1, 2024Annual cost of living adjustment
Arizona$13.85 $10.85Jan. 1, 2024Annual cost of living adjustment
Arkansas$11.00 (for employers of 4 or more employees)$2.63N/AN/A
California$15.50$15.50Jan. 1, 2024Annual cost of living adjustment
Colorado$13.65$10.63Jan. 1, 2024Annual cost of living adjustment
Connecticut$14.00$6.38 (for hotel and restaurant employees)

$8.23 (for bartenders)		June 1, 2023Will increase to $15.00 per hour
Delaware$11.75$2.23Jan. 1, 2024Will increase to $13.25
Florida$11.00$7.98 Sep. 30, 2023Will increase to $12.00
Georgia$7.25
(for FLSA-covered employees)

$5.15 (non-FLSA employers)		$2.13N/AN/A
Hawaii$12.00$11.00Jan. 1, 2024 Will increase to $14.00
Idaho$7.25$3.35N/AN/A
Illinois$13.00$7.80 Jan. 1, 2024Will increase to $14.00
Indiana$7.25$2.13N/AN/A
Iowa$7.25$4.35N/AN/A
Kansas$7.25$2.13N/AN/A
Kentucky$7.25$2.13 N/AN/A
Louisiana$7.25
(no state minimum)		$2.13N/AN/A
Maine$13.80$6.90Jan. 1, 2024Annual cost of living adjustment
Maryland$13.25 (for large employers with 15 or more employees)

$12.80 (for small employers with fewer than 15 employees)		$3.63Jan. 1, 2024Will increase to $14.00 for large employers and $13.40 for small employers
Massachusetts$15.00$6.75N/AN/A
Michigan$10.10$3.84 Jan. 1, 2024May increase to $10.33
Minnesota$10.59 (businesses earning over $500k annual gross revenue)

$8.63 (businesses earning below $500k annual gross revenue)		$10.59 (businesses earning over $500k annual gross revenue)

$8.63 (businesses earning below $500k gross revenue)		Jan. 1, 2024Annual cost of living adjustment
Mississippi$7.25
(no state minimum)		$2.13N/AN/A
Missouri$12.00$6.00Jan. 1, 2024Will increase to $14.00
Montana$9.95 (businesses earning over $110k gross revenue)

$4.00 (for businesses not covered by FLSA with below $110k gross revenue)		$9.95 (businesses earning over $110k gross revenue)

$4.00 (for businesses not covered by FLSA with below $110k gross revenue)		Jan. 1, 2024Annual cost of living adjustment
Nebraska$10.50 (for employers of four or more employees)$2.13Jan. 1, 2024Will increase to $12.00
Nevada$9.50 (employees with qualifying health insurance)

$10.50 (employees without qualifying health insurance)		$9.50 (employees with qualifying health insurance)

$10.50 (employees without qualifying health insurance)		July 1, 2023Will increase to $10.25 for employees with qualifying health insurance and $11.25 for employees without qualifying health insurance
New Hampshire$7.25$3.26N/AN/A
New Jersey$14.13 (for large employers)

$12.93 (for seasonal and small employers who employ fewer than six people)		$5.26Jan. 1, 2024Will increase to $15.00 for large employers
Annual cost of living adjustment for seasonal and small employers who employ fewer than six people
New Mexico$12.00 $3.00N/AN/A
New York$14.20

$15.00 (Long Island, Westchester, and New York City)		Varies by regionN/AN/A
North Carolina$7.25$2.13N/AN/A
North Dakota$7.25$4.86N/AN/A
Ohio$10.10 (for employers with annual gross receipts of $372,000 or more)

$7.25 (for employers with annual gross receipts under $372,000)		$5.05Jan. 1, 2024Annual cost of living adjustment
Oklahoma$7.25
(for employers of 10 or more full-time employees at one location or employers with annual gross sales over $100,000)

$2.00 (for other non-FLSA employers)		$2.13 N/AN/A
Oregon$12.50 (non-urban counties)

$13.50 (standard)

$14.75 (Portland Metro)		$12.50 (non-urban counties)

$13.50 (standard)

$14.75 (Portland Metro)		July 1, 2023Annual cost of living adjustment
Pennsylvania$7.25$2.83N/AN/A
Rhode Island$13.00 $3.89Jan. 1, 2024Will increase to $14.00
South Carolina$7.25
(no state minimum)		$2.13N/AN/A
South Dakota$10.80$5.40Jan. 1, 2024Annual cost of living adjustment
Tennessee$7.25
(no state minimum)		$2.13N/AN/A
Texas$7.25$2.13N/AN/A
Utah$7.25$2.13N/AN/A
Vermont$13.18 (for employers of two or more employees)$6.59Jan. 1, 2024Annual cost of living adjustment
Virginia$12.00 $2.13Jan. 1, 2025Will increase to $13.50
Washington$15.74 $15.74Jan. 1, 2024Annual cost of living adjustment
West Virginia$8.75 (for employers of six or more employees in one location)$2.62 N/AN/A
Wisconsin$7.25$2.33N/AN/A
Wyoming$7.25
(for FLSA-covered employees)

$5.15 (non-FLSA employers)		$2.13N/AN/A

‍

Who Does Minimum Wage Apply To?

The federal minimum wage applies to non-exempt employees covered under the Fair Labor Standards Act (FLSA). Non-exempt employees typically include your hourly and blue-collar workers making less than $684 per week. 


The FLSA also excludes specific categories of employees from the minimum wage laws, including:


  • Tipped employees who regularly get more than $30 in monthly tips (more on this later).
  • Full-time students working for a retail store, university, or service company. You must pay these students at least 85% of the minimum wage.
  • Students in a vocational or technical program. They should receive at least 75% of the minimum wage during their enrollment period.
  • Employees under 20 years completing a three-month probationary period. They should earn at least $4.25 per hour until they complete a three-month probationary period. After that, or when they reach age 20 (whichever comes first), you should pay them at least the minimum wage.
  • Employees with mental or physical disabilities that can affect production capacity. They include people who have alcohol and drug addiction, cerebral palsy, blindness, developmental disabilities, or mental illness.

Minimum Wage: Federal vs. State vs. City

States and cities also play a significant role in determining the minimum rate for standard workers living there by setting their own minimum wage rates. 


But if the federal, state, and city minimum wages differ, can you cherry-pick the rate to apply? Unfortunately, that's not the case. You must always pay the highest minimum wage.


For example, the minimum wage for California's standard workers is $15.50 per hour, which is higher than the federal minimum. That means you should pay your workers at least the state's minimum wage of $15.50 per hour. 


However, if your worker is based in San Francisco, which has a minimum wage ($16.99) higher than the Golden State, you must pay that worker $16.99 per hour. 


On the other hand, in states like Wyoming ($5.15), where the minimum wage rate is lower than the federal rate, the higher federal rate of $7.25 per hour applies.


Keeping a tab on all these minimum wage rates and their frequent updates can be challenging. Instead, you can use payroll software like Hourly that stays up to date on minimum wage requirements and lets you pay your employees with a single click. 

Which States Are Raising Their Minimum Wages in 2023?

According to the Economic Policy Institute (EPI), 22 states and Washington, D.C., raised their minimum wage on Jan. 1, 2023. Connecticut, Oregon, Nevada, and Florida will follow suit later in the year. 


The states that raised their minimum wages on Jan. 1, 2023, include: 


  • Alaska
  • Arizona
  • California
  • Colorado
  • Delaware
  • Illinois
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Missouri
  • Montana
  • Nebraska
  • New Jersey
  • New Mexico
  • Ohio
  • Rhode Island
  • South Dakota
  • Vermont
  • Virginia
  • Washington


Connecticut's minimum wage will go up to $15.00 per hour on June 1, 2023, while Florida will raise its rate to $12.00 per hour on Sept. 30, 2023. Oregon is yet to announce the exact numbers, but they will come into effect on July 1, 2023. 


Meanwhile, Nevada workers will enjoy minimum wages of $11.25 for employees without qualifying health insurance and $10.25 for workers with qualifying health insurance starting July 1, 2023.

Which States Have a $15 per Hour Minimum Wage?

Washington, California, and Massachusetts are the states with a minimum wage of $15 per hour or above.


Workers from Connecticut will have something to smile about as we get to mid-2023. The state will join this list when its minimum hourly wage rises to $15 per hour on June 1, 2023. It's currently at $14.00 per hour.

Which States Will See Their Minimum Wage Increase to $15 per Hour in 2023 and Beyond?

Thirteen states will see their minimum wages increase to $15 per hour and above in 2023 and beyond. 


The table below highlights these states:


Minimum Wage Increasing to $15 an Hour
StateScheduled Minimum Wage IncreaseDate of Implementation
Washington$15.74 per hourJan. 1, 2023
California$15.50 per hourJan. 1, 2023
Massachusetts$15.00 per hourJan. 1, 2023
Connecticut$15.00 per hourJune 1, 2023
Delaware$15.00 per hourJan. 1, 2025
Florida$15.00 per hourSept. 30, 2026
Hawaii$16.00 per hour
$18.00 per hour		Jan. 1, 2026
Jan. 1, 2028
Illinois $15.00 per hourJan. 1, 2025
Maryland$15.00 per hourJan. 1, 2025
Nebraska$15.00 per hourJan. 1, 2026
New Jersey$15.00 per hour


$15.00 per hour		Jan. 1, 2024 (employers with five or more employees)

Jan. 1, 2026 (employers with less than five employees)
Rhode Island$15.00 per hourJan. 1, 2025
Virginia$15.00 per hourJan. 1, 2026

Which State Has the Highest Minimum Wage?

Washington has the highest minimum wage of any state in the country. It currently offers a minimum wage of $15.74 per hour. The Golden State follows with a minimum wage rate of $15.50 per hour.


Here's a summary of the states with the highest minimum wages:

‍

Highest Minimum Wage
StateMinimum Wage Rate (per hour)
Washington$15.74
California$15.50
Massachusetts$15.00
New York$14.20

$15.00 (Long Island, Westchester, and NYC)
New Jersey$14.13 (For large employers)
Connecticut$14.00


Washington, D.C., would have taken the top spot with $16.10 per hour if it were a state. 

Which State Has the Lowest Minimum Wage?

Georgia and Wyoming have the lowest minimum wages of $5.15 per hour. However, if you're an employer in either of these states, you must pay the $7.25 per hour minimum wage for employees subject to the FLSA regulations.


Meanwhile, five states have no state minimum wage laws, so they automatically follow the federal rate. They include Alabama, Louisiana, Mississippi, South Carolina, and Tennessee.


And 13 states have minimum wage laws that equal the federal minimum of $7.25 per hour:


  • Idaho
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • New Hampshire
  • North Carolina
  • North Dakota
  • Oklahoma
  • Pennsylvania
  • Texas
  • Utah
  • Wisconsin

What Is the Minimum Wage for Tipped Employees?

According to the Department of Labor (DOL), the minimum wage for tipped employees is $2.13 per hour in direct wages. 


The DOL defines a tipped employee as a worker who does a job where they regularly get more than $30 in tips per month.


It's important to note that this minimum wage law only applies to employees who receive enough tips to meet the minimum wage of $7.25 per hour (or what their state/locality mandates). As an employer, you must make up the difference if the employee's wages don't equal the minimum wage.


Also, different states have different wage laws for tipped employees. Refer to the table above for more details. 

Keep Up with State Minimum Wages

Many states increased their minimum wages in 2023 to help employees cope with the high cost of living and inflation. Other states have passed laws that'll eventually raise the minimum wage to $15 per hour beyond 2023.


Now that we've covered most of what you need to know about the minimum wages for all states in 2023, all that's left to do? Update your payroll when the time comes!

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