Harassment Prevention Training. Order it Here.

California Once Again Leads the Way on Minimum Wage Increases for 2023

EverythingHR Staff | 10/11/2022 | Blog

For many years, California HR professionals had a chart tacked somewhere near their desks showing the scheduled increase in the minimum wage from $10 per hour as of 1/1/2017 all the way up to $15 as of 1/1/2022 or, for employers with 25 or fewer employees $15 as of 1/1/2023.

Time to put those charts away?  Not a chance – it is California after all…

Anyone deeply familiar with all provisions of California Labor Code (Cal. Lab. Code Section 1182.12) will know that, it includes a requirement that the Director of the Department of Finance determine, each year, whether the minimum wage must be adjusted because of inflation.  No shocker here – the minimum wage will be going up.

As of January 1, 2023, the minimum wage in California will increase to $15.50 for all employers regardless of size.

Additionally, the salary threshold for exempt status will increase proportionally from $62,400 to $64,480 for all employers.

Other states will be increasing their minimum wage based on inflation as well, including Illinois, New Jersey and Virginia.

Remember that any compensation planning and adjustments will have to account for this and the corresponding compression that will impact other jobs paid at rates close to the minimum wage.

For a chart of updated state and local minimum wage levels, please continue to our blog.

 

State and Local Minimum Wages

Effective July 1, 2022

 

STATE OR LOCALITY MINIMUM WAGE RATE MAXIMUM
TIP CREDIT
MINIMUM
TIPPED WAGE
NOTES & FUTURE SCHEDULED INCREASES
Federal

minimum

$7.25 $5.12 $2.13 Tipped employees must regularly earn at least $30 per month in tips.
Federal
contractors
$11.25 $3.35 $7.90 Adjusted annually January 1. Under executive order regulations to increase to $15 are being written.
Alabama NONE* NONE* NONE* No minimum wage; federal law applies.
Alaska $10.34 Tip credit prohibited $10.34 Adjusted annually January 1.
Arizona $12.80 $3.00 $9.80 Adjusted annually on January 1.
Flagstaff $15.50 ** ** Deleted text
Arkansas $11.00 $8.37 $2.63 Tipped employees must regularly earn at least $20 per month in tips.
California  $15.00 with 26 employees or more; $14.00 with fewer than 26 employees Tip credit prohibited $15.00 with 26 employees or more; $14.00 with fewer than 26 employees 25 employees or less: $15.00 1/1/23, then adjusted annually.
Alameda $15.75 ** ** Adjusted annually on July 1.
Belmont $16.20 ** ** Adjusted annually on January 1.
Berkeley $16.99 ** ** Adjusted annually on July 1.
Burlingame $15.60 ** ** Adjusted annually January 1.
Cupertino $16.40 ** ** Adjusted annually January 1.
Daly City $15.53 ** ** Adjusted annually January 1.
El Cerrito $16.37 ** ** Adjusted annually January 1.
Emeryville

 

$17.68 ** ** Adjusted annually on July 1.
Fremont $16.00 ** ** Adjusted annually on July 1.
Half Moon Bay $15.56 ** ** Adjusted annually January 1.
Hayward $15.56 with 26 or more employees; $14.52 with 25 or fewer employees ** ** Adjusted annually January 1.
Long Beach $15.00 with 26 employees or more; $14.00 with fewer than 26 employees $15.69 for hotel workers; $15.32 for concessionaires ** **  
Los Altos $16.40 ** ** Adjusted annually January 1.
Los Angeles City $16.04 ** ** Adjusted annually on July 1.
Los Angeles County $15.96 ** ** Adjusted annually on July 1.
Malibu $15.96 ** ** Adjusted annually on July 1.
Menlo Park $15.75 ** ** Adjusted annually January 1.
Milpitas $16.40     Adjusted annually July 1.
Mountain View $17.10 ** ** Adjusted annually January 1.
Novato $15.77 for businesses with 100 or more employees; $15.53 for businesses with 26 to 99 employees; $15.00 with 25 or fewer employees ** ** Deleted text
Oakland $15.06 ** ** Adjusted annually January 1.
Palo Alto $16.45 ** ** Adjusted annually January 1.
Pasadena $16.11 ** ** Adjusted annually on July 1.
Petaluma $15.85 ** ** Adjusted annually January 1.
Redwood City $16.20 ** ** Adjusted annually January 1.
Richmond $15.54 ** ** Adjusted annually January 1.
San Carlos $15.77 ** ** Adjusted annually January 1.
San Diego $15.00 ** ** Adjusted annually January 1.
San Francisco $16.99 ** ** Adjusted annually July 1.
San Jose $16.20 ** **
San Leandro $15.00 ** ** Adjusted annually on July 1.
San Mateo $16.20 ** ** Adjusted annually January 1.
Santa Clara $16.40 ** ** Adjusted annually January 1.
Santa Monica $15.96; $18.17 for hotel workers ** ** Adjusted annually July 1.
Santa Rosa $15.85 ** ** Adjusted annually January 1.
Sonoma $16.00 for businesses with 26 or more employees; $15.00 for businesses with 25 or fewer employees ** ** For businesses with 26 or more employees:

$17.00 1/1/23.  For businesses with 25 or fewer employees: $16.00 1/1/23. Adjusted annually January 1.

South San Francisco $15.55 ** ** Adjusted annually January 1.
Sunnyvale $17.10 ** ** Adjusted annually January 1.
Colorado $12.56 $3.02 $9.54 Adjusted annually on January 1. Tipped employee must regularly earn at least $30 per month in tips.
Denver $15.87 ** ** Adjusted annually January 1.
Connecticut $14.00 36.8 percent for hotels and restaurants; 18.5 percent for bartenders $6.38 for hotels and restaurants; $8.23 for bartenders Increasing to $15.00 6/1/23, then adjusted annually on January 1. For hotels and restaurants, full-time tipped employees must earn at least $10 weekly in tips; part-time employees must earn at least $2 daily in tips. Tip credit may not be used for pizza delivery drivers.
Delaware $10.50 $8.27 $2.23 Increasing to $11.751/1/23; $13.25 1/1/24; $15.00 1/1/25. Tipped employee must regularly earn at least $30 per month in tips.
New Castle County $10.10 ** **  
D.C. $16.10 $10.75 $5.35 Adjusted annually on July 1.
Florida $10.00 $4.37 $5.63 Increasing to: $11.00 9/30/22; $12.00 9/30/23; $13.00 9/30/24; $14.00 9/30/25; $15.00 9/30/26.
Georgia $5.15 Federal law applies Federal law applies
Hawaii $10.10 $.75 $9.35 Employees must regularly earn at least $20 per month in tips; combined wage must be at least $7.00 more than the applicable minimum wage.
Idaho $7.25 $3.90 $3.35 Employees must regularly earn at least $30 per month in tips.
Illinois $12.00 40 percent $7.20 Increasing to $13.00 1/1/23; $14.00 1/1/24, $15.00 1/1/25.

Employees must regularly earn at least $20 per month in tips.

Chicago $15.00 for large employers with 21 or more employees; $14.00 for small employers with 4 to 20 employees ** ** Adjusted annually July 1.

 

 

Cook County $13.35 ** ** Adjusted annually July 1.
Indiana $7.25 $5.12 $2.13 Employees must regularly earn at least $30 per month in tips.
Iowa $7.25 $2.90 $4.35 Employees must regularly earn at least $30 per month in tips.
Kansas $7.25 $5.12 $2.13 Employees must regularly earn at least $20 per month in tips.
Kentucky $7.25 Federal law applies Federal law applies Employees must regularly earn at least $30 per month in tips.
Louisiana NONE* NONE* NONE* No minimum wage; federal law applies.
Maine $12.75 $6.38 $6.38 Adjusted annually on January 1. Employees must regularly earn at least $30 per month in tips.
Bangor $9.75 ** ** The state minimum wage rates apply.
Portland $13.00 ** **  
Maryland $12.50 for businesses with 15 or more employees; $12.20 for businesses with fewer than 15 employees $8.87 $3.63 Increasing to: $13.25 1/1/23; $14.00 1/1/24; $15.00 1/1/25 for businesses with 15 or more employees. Increasing to: $12.80 1/1/23; $13.40 1/1/24; $14.00 1/1/25; $14.60 1/1/26; $15.00 7/1/26 for businesses with fewer than 15 employees. Employees must regularly receive at least $30 per month in tips.
Montgomery County $15.65 for businesses with 51 or more employees;

$14.50 for businesses with 11 to 50 employees; $14.00 for businesses with 10 or fewer employees

** ** Adjusted annually July 1.
Prince George’s County $11.75 for businesses with 15 or more employees; $11.60 for businesses with fewer than 15 employees ** ** The state minimum wage rates apply.
Massachusetts $14.25 $7.95 $6.15 Increasing to: $15.00 1/1/23. Employees must receive at least $20 per month in tips.
Michigan $9.87 $6.12 $3.75 Adjusted annually on January 1.
Ypsilanti $10.10 ** **  
Minnesota $10.33 large employers (annual gross revenue $500,000 or more);  $8.42 small employers (annual gross revenue less than $500,000) Tip credit prohibited $10.33/$8.42 Adjusted annually on January 1.
Minneapolis $15.00 for businesses with more than 100 employees;

$13.50 for businesses with 100 or fewer employees

** ** Large businesses (101 or more employees):

$15.00 indexed to inflation 1/1/23; $15.00 indexed to inflation again on 7/1/24.

 

Small businesses (100 or fewer employees): 

$14.50 7/1/23; $15.00 indexed to inflation 7/1/24.

St. Paul $15.00 for large employers of more than 10,000 employees; $13.50 for large employers of more than 100 employees; $12.00 for small employers with 6 to 100 employees; $10.75 for micro employers with 5 or fewer employees ** ** Large employers with 101 to 10,000 employees:

$15.00 7/1/23

 

Small employers with 6 to 100 employees:

$13.00 7/1/23; $14.00 7/1/24; $15.00 7/1/25

 

Micro employers with 5 or fewer employees:

$11.50 7/1/23; $12.25 7/1/24; $13.25 7/1/25; $14.25 7/1/26; $15.25 7/1/27

Mississippi NONE* NONE* NONE* No minimum wage; federal law applies.
Missouri $11.15 50 percent $5.575 Increasing to: $12.00 1/1/23. Adjusted annually on January 1.
Montana $9.20 Tip credit prohibited $9.20 Adjusted annually on January 1.
Nebraska $9.00 $6.87 $2.13
Nevada $10.50 without health benefits $9.50 with health benefits Tip credit prohibited $9.00/$8.00 Increasing to: $11.25/$10.25 7/1/23.
New Hampshire $7.25 $3.98 45 percent Employees must regularly earn at least $30 per month in tips.
New Jersey $13.00 for employers with more than 5 employees; $11.90 for seasonal employers, small employers with 5 or fewer workers, and $10.90 for agricultural employers $7.87; $6.77 for seasonal and small employers $5.13 Increasing to: $14.00 1/1/23 for employers with more than 5 employees; $12.70 1/1/23 for seasonal and small employers; $11.70 1/1/23 for agricultural employers. Adjusted annually on January 1.
New Mexico $11.50 $8.70 $2.80 Increasing to: $12.00 1/1/23. Employees must regularly earn at least $30 per month in tips.
Albuquerque $11.50 ** ** The state minimum wage rates apply.
Bernalillo County $9.45 ** ** The state minimum wage rates apply.
Las Cruces $11.50 ** ** The state minimum wage rates apply.
Santa Fe $12.95 ** ** Adjusted annually in March.
Santa Fe County $12.32 ** ** Adjusted annually in March.
New York See industry wage orders for additional requirements.
New York City $15.00 $5.00 $10.00 food service workers; $12.50 service employees
New York City – Small Employers (10 or less) $15.00 $5.00 $10.00 Delete this entire row
Long Island & Westchester $15.00 $5.00 $10.00 food service workers; $12.50 service employees Text deleted
Remainder of New York State $13.20 $4.15 $8.80 food service workers; $11.00 service employees Annual indexing to continue increasing up to $15.00.

 

Fast food employees in New York City (in fast food establish- ments) $15.00 ** **  
Fast food employees outside of New York City (in fast food establish- ments) $15.00 ** **  
North

Carolina

$7.25 $5.12 $2.13 (tied to federal minimum) Employees must regularly earn at least $20 per month in tips.
North

Dakota

$7.25 33 percent $4.86 Employees must regularly earn at least $30 per month in tips.
Ohio $9.30 (gross receipts of $342,000 or more); $7.25 (gross receipts under $342,000) $4.65 $4.65 Adjusted annually on January 1. Tipped employees must regularly earn at least $30 per month in tips.
Oklahoma $7.25 50 percent $3.63
Oregon Portland metro area $14.75;
Urban counties $13.50; Rural counties $12.50
Tip credit prohibited Portland metro area $14.75;
Urban counties $13.50; Rural counties $12.50
An employer’s location affects minimum wage rate.

Within Portland’s urban growth boundary (metro area) (including portions of Clackamas, Multnomah, and Washington counties): beginning 7/1/23 adjusted annually based on the increase, if any, to the US City average Consumer Price Index for All Urban Consumers.

Areas not in Portland’s urban growth boundary or one of the listed nonurban counties (urban counties) (Benton, Clackamas, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Multnomah, Polk, Tillamook, Wasco, Washington, Yamhill counties): beginning 7/1/23 $1.25 over the standard minimum wage.

The nonurban counties (rural counties) (Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, Wheeler counties): beginning 7/1/23 $1 less than the standard minimum wage.

Pennsylvania $7.25 $4.42 $2.83 Employees must regularly earn at least $30 per month in tips.
Rhode

Island

$12.25 $8.36 $3.89 Increasing to: $13.00 1/1/23; $14.00 1/1/24; $15.00 1/1/25.
South

Carolina

NONE* NONE* NONE* No minimum wage; federal law applies.
South

Dakota

$9.95 $4.975 $4.975 Adjusted annually on January 1. Employees must regularly earn at least $35 per month in tips and cash wage must be at least one-half of minimum wage.
Tennessee NONE* NONE* NONE* No minimum wage; federal law applies.
Texas $7.25 $5.12 $2.13 Employees must regularly receive at least $20 per month in tips.
Utah $7.25 $5.12 $2.13 Employees must receive at least $30 per month in tips.
Vermont $12.55 $6.27 $6.28 Adjusted annually on January 1. Employees must regularly receive at least $120 per month in tips.
Virginia $11.00 $8.87 $2.13 Increasing to: $12.00 1/1/23. No maximum tip credit; federal law applies.
Washington $14.49 Tip credit prohibited $14.49 Adjusted annually on January 1.
Seattle Schedule 1 (more than 500 employees in U.S.)  $17.27

 

Schedule 2 (500 or fewer employees in U.S.) $17.27

 

Schedule 2 (500 or fewer employees in U.S.) with medical benefits or tips $15.75

** **  

Adjusted annually on January 1.

 

 

 

Adjusted annually on January 1.

 

 

Schedule 2 employers (500 or fewer employees in the U.S.) with medical benefits or tips

$16.50 1/1/23; $17.25 1/1/24. Effective January 1, 2025, the hourly minimum wage paid by a Schedule 2 employer shall equal the hourly minimum wage applicable to Schedule 1 employers.

SeaTac $17.53 ** ** Adjusted annually on January 1.
West

Virginia

$8.75 $6.13 $2.62
Wisconsin $7.25 $4.92 $2.33
Wyoming $5.15* $3.03 $2.13 Employees must regularly earn at least $30 per month in tips.

**Maximum tip credit and minimum tipped wage information is not tracked on this chart for municipalities.

*Employers in states without minimum wage laws, or with minimum wage rates lower than the federal minimum wage, which currently is $7.25 an hour, must observe the federal minimum wage for all employees covered by the Fair Labor Standards Act.