In 2023, many states and localities will increase their minimum wage amounts. In some areas, the amounts paid to tipped employees may also increase and overtime salary thresholds may also change.
This chart briefly details the changes that will kick in on New Year’s Day or later in 2023. For more information about your situation, consult with your payroll advisor.
State | 2023 Changes (in effect on January 1, unless otherwise noted) |
Alaska | The minimum wage increases from $10.34 per hour to $10.85 per hour. The state doesn’t permit the use of a tip credit toward the minimum hourly wage. |
Arizona | The minimum wage increases from $12.80 per hour to $13.85 per hour. An employer may take a tip credit of up to $3 per hour against the minimum wage rate so the cash minimum wage for tipped workers increases to $10.85 per hour in 2023.
Local minimum wage changes. The City of Flagstaff minimum wage increases to $16.80 per hour ($14.80 per hour for tipped workers). The City of Tucson minimum wage increases to $13.85 per hour ($10.85 per hour for tipped workers). Tucson’s minimum wage was scheduled to increase to $13.50. However, since the state minimum wage is greater than the scheduled increase, the city’s minimum wage has been adjusted to align with the state increase. |
California | The minimum wage rate increases to $15.50 per hour for all employers. The state doesn’t permit the use of a tip credit toward the minimum hourly wage.
Overtime salary thresholds. Computer software employees must be paid at least $112,065.20 annually ($53.80 per hour) to qualify for the overtime exemption. Licensed physicians and surgeons must be paid at least $97.99 hourly to qualify for the overtime exemption. Local minimum wage changes. Rates will increase in the following localities: Anaheim (for hospitality workers), Belmont, Burlingame, Cupertino, Daly City, East Palo Alto, El Cerrito, Foster City, Half Moon Bay, Hayward City, Long Beach, Los Altos, Menlo Park, Mountain View, Novato, Oakland, Palo Alto, Petaluma, Redwood City, Richmond, San Carlos, San Diego, San Jose, San Mateo, Santa Clara, Santa Rosa, Sonoma, South San Francisco, Sunnyvale, and West Hollywood. (The Inglewood minimum wage rate for healthcare workers, as approved by voters. won’t take effect until January 1, 2024.) |
Colorado | While the final Pay Calc (wage order) hasn’t yet been issued, Colorado Governor Jared Polis announced that the minimum wage will increase from $12.56 to $13.65 per hour. The cash minimum wage for tipped workers will increase to $10.63 per hour ($3.02 per hour tip credit). The proposed Pay Calc indicates 2023 minimum wage increases for non-emancipated minors ($11.61 per hour) and agricultural range workers ($559.29 per week).
Overtime salary thresholds. The proposed Pay Calc adjusts the salary thresholds for the overtime exemption for: 1) executive, administrative, or professionals (EAP): $961.54 per week; 2) highly technical computer employees: $31.41 per hour or the EAP salary; 3) highly compensated employees: $112,500 annually and the EAP salary weekly. The Pay Calc hasn’t been finalized yet. Agricultural workers. Beginning November 1, 2022, agricultural workers must be paid overtime for hours worked in excess of 60 hours per week. (This decreases to 54 hours in 2024.) Local minimum wage changes. The Denver minimum wage rate increases to $17.29 per hour. The cash minimum wage for tipped workers increases to $14.27 per hour ($3.02 per hour tip credit). |
Delaware | The minimum wage increases to $11.75 per hour. The cash minimum wage rate for tipped workers will be $2.23 per hour. Employers may pay $11.25 per hour in 2023 to employees who are 18 years of age or older, during the first 90 consecutive calendar days of employment or employees under the age of 18. |
District of Columbia | The current DC minimum wage rate is $16.10 per hour and remains in effect until June 30, 2023.
The rate for tipped employees currently is $5.35 per hour but increases to $6 per hour on January 1, 2023, due to the passage of a ballot measure that increases the cash minimum wage for tipped workers until it’s equal to the DC minimum wage by July 1, 2027. For the first 90 days of employment, minors, newly hired persons 18 years old or older, and students employed by institutions of higher education may be paid the federal minimum wage ($7.25 per hour). The minimum wage rate for workers at Reagan and Dulles airports (in Virginia) increases to $15 per hour. |
Illinois | The minimum wage rate increases from $12 per hour to $13 per hour. The minimum wage for tipped workers increases to $7.80 per hour. The minimum wage for minors under 18 that work less than 650 hours per year is $10.50 per hour.
Local minimum wage changes.The Chicago minimum wage rate isn’t scheduled to increase until July 1, 2023. The Cook County minimum wage rates are the same as the state minimum wage rates. |
Maine | The minimum wage rate increases from $12.75 per hour to $13.80 per hour. The cash minimum wage rate for tipped workers increases to $6.90 per hour.
Local minimum wage changes. The Portland minimum wage increases to $14 per hour and $7 per hour for tipped workers who earn over $100 per month in tips. The Rockland minimum wage increases from $13 per hour to $14 per hour. The minimum wage for tipped workers who regularly receive more than $175 per month in tips increases to $7 per hour. Overtime salary thresholds. The minimum wage exemption threshold for executive, administrative and professional employees rises to $796.17 per week (currently $735.58), or $41,401 annually. |
Maryland | The minimum wage rate for employers with 15 or more employees increases to $13.25 per hour and to $12.80 per hour for employers with 14 or fewer employees. The minimum wage for minors under the age of 18 is 85% of the state’s minimum wage.
Local minimum wage changes. The Montgomery County minimum wage rate increases to $14.50 per hour. The Howard County minimum wage increases to $15 per hour for employers with 15 or more employees and to $13.25 per hour for small employers. The wage for minors under 18 in Howard County is 85% of the county minimum wage. Prince George’s County no longer has county minimum wage rates. |
Massachusetts | The minimum wage rate increases from $14.25 per hour to $15 per hour. The cash minimum wage for tipped workers increases to $6.75 per hour. |
Michigan | While there’s a scheduled minimum wage rate of $10.10 per hour, a court has ruled that the adopt-and-amend strategy employed that increased the minimum wage incrementally until it reached $12 per hour in 2022 is unconstitutional. The judge ordered that the minimum wage change not be implemented any earlier than February 19, 2023. The cash minimum wage for tipped workers is 38% of the state minimum wage. |
Minnesota | For large employers (gross volume of sales of $500,000 or more), the minimum wage increases from $10.33 per hour to $10.59 per hour. For small employers, the minimum wage increases from $8.42 per hour to $8.63 per hour. The state doesn’t permit the use of a tip credit against the minimum wage.
Local minimum wage changes. The minimum wage in St. Paul will be $15.19 per hour for macro businesses (10,000+ employees), beginning January 1, 2023. The following minimum wage rates increase, beginning July 1, 2023: 1) $15 for large businesses (101-10,000 employees); 2) $13 per hour for small business (6-100 employees); 3) $11.50 per hour for micro businesses (5 or fewer employees); and 4) $11.05 per hour for minors under age 18 for the 90 days of employment or a youth under age 20 in a city-approved Youth Training Program. The minimum wage for Minneapolis increases to $15.19 per hour for large businesses (100+ employees) and $14.50 per hour for small businesses. |
Missouri | The minimum wage rate increases from $11.15 per hour to $12 per hour. The minimum wage for tipped workers increases to $6 per hour. |
Montana | The minimum wage increases from $9.20 per hour to $9.95 per hour. Businesses not covered by the Fair Labor Standards Act (FLSA) with gross annual sales of $110,000 or less may pay $4 per hour. However, if an individual employee is producing or moving goods between states or otherwise covered by the FLSA, that employee must be paid the greater of either the federal minimum wage ($7.25 per hour) or Montana’s minimum wage. The state doesn’t permit the use of a tip credit. Farm workers under age 18 may be paid sub-minimum rates for 180 days (at least 50% of the minimum wage required). |
Nebraska | The minimum wage rate increases from $9 per hour to $10.50 per hour. The minimum wage for tipped workers increases to $6 per hour. Sub-minimum wage rates apply to student learners and new hires under age 20. |
New Jersey | The minimum wage rate increases from $12 per hour to $13 per hour for most employers. The rate increases to $12.70 per hour for seasonal and small employers with fewer than six employees. The rate increases to $11.70 per hour for agricultural employers. The wage for long-term care facility direct care staff members increases to $17 per hour. The cash minimum wage for tipped workers remains $5.13 per hour. Full-time students can be employed by the college or university in which they’re enrolled at not less than 85% of the minimum hourly wage in effect. |
New Mexico | The minimum wage rate increases from $11.50 per hour to $12 per hour. The tipped worker minimum wage is $3 per hour.
Local minimum wage changes. The Albuquerque minimum wage increases to $12 per hour and $7.20 for tipped workers. The Las Cruces minimum wage increases to $12 per hour. The tipped worker rate is $4.78 per hour. The Santa Fe minimum wage is currently $12.95 per hour. The next scheduled increase will be effective March 1, 2023. The Bernalillo County minimum wage is superseded by the state minimum wage rate. |
New York | The minimum wage rate remains $15 per hour in New York City, Long Island and Westchester County. The minimum wage increases from $13.20 per hour to $14.20 per hour for the remaining areas of NY state. The minimum wage for food service workers remains $10 per hour ($5 per hour tip credit) in New York City, Long Island and Westchester County, but increases to $9.45 per hour ($4.75 per hour tip credit) in the remainder of the state. The minimum wage for service workers who aren’t in the food industry but are customarily tipped will remain $12.50 per hour ($2.50 per hour tip credit) in New York City, Long Island and Westchester County, but increases to $11.85 per hour ($2.35 per hour tip credit). The fast food minimum wage remains $15 per hour. A tip credit isn’t permitted for fast food workers. The minimum wage for health care aides, effective October 1, 2022, is $17 per hour in New York City, Long Island and Westchester, and $15.20 per hour for the remainder of the state.
Overtime salary thresholds. The minimum wage exemption threshold for executive and administrative employees for 2023 hasn’t yet been announced. Note that there’s no professional exemption from overtime. Agricultural workers. On September 30, 2022, the state Department of Labor Commissioner issued an order accepting the recommendation of the Farm Laborers Wage Board to lower the current 60-hour threshold. The proposed regulatory text would require agricultural workers to be paid overtime for hours worked in excess of 56 hours per week, beginning in 2024. Public comment on the proposed regulation closed on December 11, 2022. |
Ohio | The minimum wage rate increases from $9.30 per hour to $10.10 per hour for employers with annual gross receipts of $371,000 or more. Employers with less than $371,000 in annual gross receipts may pay $7.25 per hour. The minimum wage for tipped workers increases to $5.05 per hour. Employees under age 16 may be paid the federal minimum wage rate of $7.25 per hour. |
Oregon | The minimum wage won’t increase until July 1, 2023. Agricultural workers. Beginning January 1, 2023, agricultural workers are required to be paid overtime for hours worked in excess of 55 hours per week. This decreases to 48 hours in 2025. |
Rhode Island | The minimum wage rate increases from $12.25 per hour to $13 per hour. The minimum wage for tipped workers is $3.89 per hour. For full-time students under 19 working in certain nonprofit organizations, the minimum wage increases to $11.70 per hour (90% of the minimum wage). For 14 and 15-year-olds who work more than 24 hours per week, the minimum rate is $9.75 per hour (75% of the minimum wage). |
South Dakota | The minimum wage rate increases from $9.95 per hour to $10.80 per hour. The minimum wage for tipped workers is $5.40 per hour. Any employee under age 20 years may be paid an opportunity wage of $4.25 an hour for the first 90 days of employment. |
Vermont | The minimum wage rate increases from $12.55 per hour to $13.18 per hour. The minimum wage for tipped workers is $6.55 per hour. |
Virginia | The minimum wage for workers at Reagan and Dulles airports increases to $15 per hour.
The minimum wage rate increases from $11 per hour to $12 per hour. The cash minimum wage for tipped workers is $2.13 per hour. Virginia allows employers to take advantage of the federal opportunity wage, which specifies that new hires under 20 years of age may be paid $4.25 per hour for the first 90 calendar days after the date of hire. |
Washington | The minimum wage rate increases from $14.49 per hour to $15.74 per hour. The state doesn’t permit the use of a tip credit toward the minimum hourly wage. Minors between 14 and 15 years old may be paid $13.38 per hour (85% of the minimum wage) in 2023.
Overtime salary thresholds. The salary threshold for the overtime exemption for executive, administrative, and professional workers increases to $1,101.80 per week ($57,293.60 annually) for small employers (up to 50 employees) and to $1,259.20 per week ($65,478.40 a year) for large employers (over 50 employees). The salary threshold for the exemption for computer professionals $55.09 per hour for employers of all sizes. Agricultural workers. Agricultural workers are required to be paid overtime for hours worked in excess of 48 hours per week (55 hours in 2022). This decreases to 40 hours in 2024. Local minimum wage changes. The Seattle minimum wage for large employers (501 or more employees) increases $18.69 per hour. For small employers (500 or fewer employees) who do pay at least $2.19 per hour toward the employee’s medical benefits and/or where the employee does earn at least $2.19 per hour tips, the Seattle minimum wage increases to $16.50 per hour, otherwise the minimum wage rate of $18.69 per hour would apply. The SeaTac minimum wage for hospitality and transportation industry employees increases to $19.06 per hour. A minimum wage for Tukwila has been established by a voter-approved ballot measure, beginning July 1, 2023. Tukwila reported that the city is currently still codifying and performing an analysis. The city noted that it will publish the final rate per the legislation by the end of the year. |
Looking Further Ahead
Here are some additional minimum wage increases scheduled to occur later in 2023
Connecticut. The minimum wage will increase to $15 per hour, effective June 1, 2023. The cash minimum wage is frozen at $6.38 per hour for hotel and restaurant staff and at $8.23 per hour for bartenders.
Florida. The minimum wage will increase from $11 per hour to $12 per hour, beginning September 30, 2023. The cash minimum wage rate for tipped workers will increase on that date to $8.98 per hour ($3.02 per hour tip credit).
Nevada. Currently, the minimum wage is $9.50 per hour with qualified health benefits and $10.50 per hour without health benefits. Beginning July 1, 2023, the minimum wage will increase to $10.25 per hour with qualified health benefits; $11.25 per hour without. Beginning January 1, 2024, the minimum wage is $12 per hour regardless of benefits, as approved by a ballot measure.
Puerto Rico. The current minimum wage is $8.50 per hour. The hourly minimum wage is scheduled to increase beginning July 1, 2023, to $9.50. Tipped employees are entitled to the federal minimum wage in effect for such workers ($2.13 per hour), which with tips added to the federal minimum wage must be at least equal the Puerto Rico minimum wage of $9.50 per hour.
Texas. The current minimum is $7.25 per hour and is only adjusted by legislative action. However, airport workers in Houston received a minimum wage increase of $14 per hour, beginning October 1, 2022. It further increases to $15 per hour, beginning October 1, 2023.