The federal government states that employers must pay their employees at least $7.25 an hour. The federal minimum wage hasn’t increased since 2009 and is part of a broader law called the federal Fair Labor Standards Act (FLSA). This law applies to all businesses across the country, though some states may have a higher minimum wage rate.
Even though the federal law hasn’t changed, in 2023, 23 states and many cities raised or plan to raise their minimum wage rate. Most of them will start on January 1, but some will start later in the year. If your state starts later, we’ll highlight the date in bold.
Take a look at the list below. If you want to learn more about the different laws you need to follow based on where you live and work, head to our state labor law guide center.
If you have more questions about staying compliant under state minimum wage laws, Homebase HR Pro can help. We’ll notify you when labor laws change in your area and give you access to HR experts who can answer all your questions.
2023 minimum wage by state
Arizona
Arizona’s rate increased to $13.85 for non-tipped employees based on the Consumer Price Index, and $11.00 for tipped employees. This is a minimum wage increase for the state.
In Flagstaff city, the minimum wage rate increased to $16.80 per hour. This minimum wage increase is according to the city law. According to the city law, employers can only pay tipped employees $2 less than the minimum wage rate if they can prove that the employee earned at least the minimum wage in tips for all hours worked.
California
Starting from January 1, 2023, the minimum wage rate for all employers in California increased to $15.50 per hour. However, California law does not permit employers to pay a lower wage to employees who earn tips.
There are many cities and counties in California that have raised their minimum wage above $15.50 per hour. These include:
- Alameda: $15.75
- Belmont: $16.75
- Berkeley: $16.99
- Burlingame: $16.47
- Cupertino: $17.20
- Daly City: $16.07
- East Palo Alto: $16.50
- El Cerrito: $17.35
- Emeryville: $17.68
- Fremont: $16.00
- Foster City: $16.50
- Half Moon Bay: $16.45
- Hayward: $16.34
- Hayward (businesses with under 25 employees): $15.50
- Long Beach (hotel workers): $16.73
- Long Beach (concessionaire workers): $16.55
- Los Altos: $17.20
- Los Angeles: $16.04
- Los Angeles (city & Unincorporated areas of county): $15.96
- Malibu: $15.96
- Menlo Park: $16.20
- Milpitas: $16.40
- Mountain View: $18.15
- Novato: $16.07
- Novato (businesses with under 25 employees): $15.53
- Novato (businesses with over 100 employees): $16.32
- Oakland: $15.97
- Palo Alto: $17.25
- Pasadena: $16.11
- Petaluma: $17.06
- Redwood City: $17.00
- Richmond: $16.17
- San Carlos: $16.32
- San Diego: $16.30
- San Francisco: $16.99
- San Jose: $17.00
- San Mateo: $16.75
- Santa Clara: $17.20
- Santa Monica: $15.96
- Santa Rosa: $17.06
- Sonoma: $17.00 ($16.00 for small employer)
- Santa Monica: $15.96
- South San Francisco: $16.70
- Sunnyvale: $17.95
- West Hollywood (businesses with over 50 employees): $17.50
- West Hollywood (businesses with under 50 employees): $17.00
Colorado
Colorado increased its minimum wage to $13.65 per hour starting from January 1, 2023. The minimum wage rate for tipped employees also increased to $10.63 per hour.
In Denver, the minimum wage for regular employees increased to $17.29 per hour, and for workers who get tips, the new minimum wage rate is $14.27 per hour.
Connecticut
Connecticut is planning to increase its minimum wage to $15.00 per hour on June 1, 2023. However, the minimum wage rate for workers who get tips will not change. The current minimum wage for tipped employees is $6.38 per hour, but bartenders must be paid at least $8.23 per hour for the hours they work.
Delaware
The minimum wage rate in Delaware increased to $11.75. The tipped employee rate is $2.23, pursuant to Delaware legislation.
Florida
Starting from September 30, 2023, the state of Florida will increase the minimum wage for regular workers to $12.00 per hour, and for workers who get tips, the new minimum wage will be $7.98 per hour.
This increase is part of Florida’s plan to gradually raise the minimum wage to $15 by 2026.
Illinois
Illinois has a plan to raise the minimum wage to $15 by 2025. In 2023, the new minimum wage rate is $13 per hour for regular employees and $7.80 per hour for workers who get tips.
Employers in Illinois can pay a lower “youth wage” to employees who are under 18 and work less than 650 hours in a year. The youth wage has increased to $10.50 per hour.
New employees who are over 18 can be paid a lower “training wage” for the first 90 days of employment. The training wage is $0.50 lower than the regular minimum wage rate, so in 2023 it will be $12.50 per hour.
Maine
Maine has increased the minimum wage for standard workers to $13.80 per hour, and for workers who get tips, the new minimum wage is $6.90 per hour.
In Portland, the minimum wage is even higher. For employees who don’t get tips, the new minimum wage is $14.00 per hour, and for employees who get tips, the new minimum wage is $7.00 per hour.
Maryland
Maryland has increased the minimum wage for different employers at different rates in 2023. For large employers who have 15 or more workers, the new minimum wage is $13.25 per hour. But for small employers with less than 15 workers, the new minimum wage is $12.80 per hour. The minimum wage will keep going up every year until it reaches $15 in 2025.
In Montgomery County, the minimum wage is going up even more. Starting in July 2023, the new minimum wage will be $16.71 per hour.
Massachusetts
In Massachusetts, the minimum wage rate is now $15.00 per hour for regular employees, as required by state law. But for workers who get tips, the minimum wage rate is lower, and it’s currently $6.75 per hour. The tipped minimum wage rate will also go up as the regular rate increases.
Minnesota
In Minnesota, the minimum wage depends on how much money a business makes each year, and it goes up to adjust for inflation. If a business makes less than $500,000 a year, the minimum wage rate is $8.63 per hour. But if a business makes more than $500,000 a year, the minimum wage rate is $10.59 per hour.
Businesses that have employees who get tips have to pay the same minimum wage rate as everyone else. They can’t pay less based on how much they earn in tips.
The city of Minneapolis is going to raise the minimum wage even higher. Starting on July 1, 2023, small businesses will have to pay a minimum wage of $14.50 per hour, and larger businesses will have to pay $15.19 per hour.
In St. Paul, the minimum wage rate will keep going up until it reaches $15.19 per hour. After that, it will go up along with inflation. Here are the rates based on the size of the business, starting on July 1, 2023:
- Businesses with 5 or fewer employees: $11.50 per hour
- Businesses with 6 to 100 employees: $13.00 per hour
- Businesses with 101 to 10,000 employees: $15.00 per hour
- Businesses with over 10,000 employees: $15.19 per hour
Missouri
Missouri is passing a new law that raises the minimum wage to $12.00 per hour for regular employees and $6.00 per hour for employees who get tips.
But there’s an exception: if a business makes less than $500,000 a year and is in retail or service, they don’t have to pay the state minimum wage. Also, employers have to pay tipped employees at least half of the state minimum wage rate. But if the employee doesn’t make enough in tips to reach the full minimum wage rate, the employer has to pay the rest.
Montana
Montana is going to increase the minimum wage to $9.95 per hour at the start of the new year. Also, businesses can’t pay tipped employees less than the regular minimum wage in Montana.
Nevada
Starting on July 1, 2023, the minimum wage in Nevada will go up. For businesses that provide healthcare, the new minimum wage will be $10.25 per hour. But for businesses that don’t offer healthcare, the new minimum wage will be $11.25 per hour. Unlike some other states, Nevada doesn’t let businesses pay tipped employees less than the regular minimum wage.
New Jersey
In New Jersey, the minimum wage rate is going up to $14.13 per hour. But for employees who get tips, the minimum wage is only going up to $5.26 per hour.
New Mexico
The state of New Mexico is raising the minimum wage to $12.00 per hour for regular employees based on their new law. But for employees who get tips, the minimum wage is only $3.00 per hour. The city of Las Cruces decided to keep its own rules for tipped employees, and they’re raising the minimum wage to $4.78 per hour.
New York
According to the New York State Minimum Wage Act, the minimum wage rates in New York go up every year on December 31 until they reach $15.00 per hour. This year, the rate is going up to $13.20 an hour for businesses that aren’t fast-food places and are outside of New York City. But for fast-food restaurants and all businesses in New York City, the rate is already $15 an hour.
In Nassau, Suffolk, and Westchester counties, the minimum wage rate is going up to $15 an hour, and they’re doing it together.
Ohio
Ohio’s minimum wage law works like a few other states. It depends on how much money a business makes each year. If a business has more than $372,000 in gross receipts each year, the new minimum wage is $10.10 per hour. But for other businesses, the minimum wage is the same as the federal rate, which is $7.25 per hour. If a business has employees who are under 18, they also get paid the federal rate.
Oregon
Starting from July 1, 2023, the minimum wage rate in Oregon will be linked to inflation as measured by the Consumer Price Index (CPI). This is a number that is put out by the United States Bureau of Labor Statistics. By April 30, 2023, the Bureau will use the CPI to calculate a new standard minimum wage rate.
Rhode Island
As Rhode Island moves toward an eventual $15 minimum wage rate, the 2023 rate will be $13.00, with a tipped rate of $3.89.
South Dakota
Starting in 2023, the minimum wage in South Dakota will go up to $10.80 an hour. The minimum wage will go up based on the Consumer Price Index. The law says that the minimum wage for tipped workers will be $5.40 an hour.
Vermont
Vermont’s annual minimum wage increase will raise the rate to $13.18, with an adjusted tipped rate of $6.59.
Virginia
Virginia increased its rate to $13.00 in 2023, with an adjusted tipped rate of $2.13.
Washington
The minimum wage in Washington has gone up to $15.74 an hour. In Seattle, the minimum wage is even higher for some employers. If a company has more than 500 workers or doesn’t pay for benefits, the minimum wage is $18.69 an hour. But if a company has 500 or fewer employees and pays for tips and benefits, the minimum wage is going up to $16.50 an hour.
Labor laws can be complicated, but staying compliant with them doesn’t have to be. At Homebase, we want to make sure you have all the resources you need to stay compliant with HR laws. That’s why we offer Homebase HR Pro – a resource that provides advice and guidance on HR-related compliance.
We do want to make it clear though, that we’re not legal experts, so if you have any legal questions, it’s best to consult a licensed attorney who can help you out.
Remember: This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.
