The new year can mean a lot of changes from both state and local regulations which businesses must adhere to. Specifically, many states have updates to their minimum wage laws which are going into effect during the new year. Starting January 1st, 2023, the states below have increased the minimum wage. Review your state closely and make sure to speak with your payroll provider to ensure that your business is inline with all of the changes which have been implemented for the year 2023.
Alaska has increased their minimum wage from $10.34/hour to $10.80/hour starting January 1st, 2023.
The state of Arizona has increased their minimum wage from $12.80/hour to $13.85/hour for the year of 2023.
There has been an increase in the minimum wage for California employees regardless of employer size. The minimum wage starting January 1, 2023 in California is $15.50. Within California many smaller municipalities have their own minimum wage standards; be sure to check within your municipality to see the exact amount of the minimum wage.
The state of Colorado has increased to $13.65/hour from the previous minimum wage standard of $12.56/hour.
Delaware has increased its minimum wage starting January 1, 2023 from last year’s total of $10.50/hour to the new minimum wage of $11.75/hour.
The state of Illinois increased its minimum wage starting January 1, 2023 to $13/hour from last year’s minimum wage of $12/hour.
The minimum wage for 2023 in the state of Maine has increased to $13.80/hour and tipped workers have seen an increase to $6.90/hour. This is an increase of $1.05 from the previous minimum wage of $12.75/hour.
Maryland has increased the minimum wage for the year of 2023. Formerly the minimum wage for the state of Maryland was $12.50 which has been increased $0.75 to $13.25. This increase applies to employers who have 15 or more employees. Employers with less than 15 employees will see the minimum wage increased to $12.80. Within the state of Maryland some counties have specific minimum wage requirements which should be adhered to. Specifically, Montgomery & Howard counties have seen changes to their minimum wage requirements for 2023.
The state of Massachusetts has increased their minimum wage from $14.25/hour to $15/hour a change of $0.75.
Beginning January 1st, 2023 the state of Michigan has increased their minimum wage by $0.23 from $9.87/hour to $10.10/hour.
The state of Missouri has increased their minimum wage from $11.15/hour to $12/hour, a change of $0.85.
Nebraska has updated their minimum wage beginning January 1st, 2023 with the change taking the former minimum wage of $9/hour and raising by $1.50/hour to $10.50/hour.
New Jersey is another state which has seen its minimum wage increase for the year of 2023. New Jersey’s minimum wage has increased from $13 to $14.13. For seasonal employees and employers with 5 or less employees, the minimum wage for the state of New Jersey is set to $12.93. There are also industry specific minimum wage requirements for both the agricultural industry ($12.01/hour) and for any employee who is providing direct care in a long-term care facility ($17.13/hour).
The state of New Mexico has increased the minimum wage to $12/hour from the previous minimum wage of $11.50.
Starting January 1st, 2023 the state of New York has increased the minimum wage to $14.20/hour from the previous minimum wage of $13.20/hour. Fast food workers in the state of New York have a separate minimum wage of $15/hour.
The state of Rhode Island has increased their minimum wage starting January 1st, 2023. The minimum wage has increased from $12.25/hour to $13/hour.
The state of South Dakota has increased the minimum wage starting January 1st from the previous minimum wage of $9.95/hour to $10.80/hour.
The Virginia Commonwealth has increased their minimum wage starting January 1st, 2023. The previous minimum wage was $11/hour and has now increased to $12/hour.
The state of Washington has increased their minimum wage which was previously $14.49/hour. The minimum wage starting January 1st, 2023 will be $15.74/hour.
The states above are limited to the states which have increased their minimum wage beginning January 1st, 2023. There are other states which have increases which are either coming later in the month of January, or further into the year. If you do not see your state listed above, be sure to check with your payroll service provider to ensure there are no changes to the pay rates occurring within the states which your business operates. Continue to check back with Payroll Service Solutions for updates regarding the minimum wage as well as other events which may impact a businesses’ payroll.