This is a state minimum wage update and does not cover any updates to specific local, municipal or industry minimum wages or rates for contractors or tipped workers. Please consult legal counsel for guidance on how to stay compliant with all the minimum wage laws where your business operates.
Minimum wages can change every year, depending on the various state and federal laws. While some states follow federal guidance, others set their own requirements. Understanding which rules affect the state(s) you operate in is key to compliance.
What is the federal minimum wage?
The current federal minimum wage is $7.25 per hour. States with their own hourly wage requirements may exceed this rate, but employers specifically covered by the Fair Labor Standards Act (FLSA) must adhere to the federal minimum wage.
What legislation established the federal minimum wage?
President Franklin D. Roosevelt signed the FLSA into law in 1938. At the time, the law placed the minimum wage at just 25 cents per hour. The law also created standards for child labor and overtime pay.
How often does the federal minimum wage rise?
While the FLSA is an evolving document, it doesn’t automatically increase the minimum wage. For example, the current rate was enacted in 2009 — almost 15 years ago. The president must sign any change to the federal minimum wage into law.
But that doesn’t stop certain states from forming their own standards.
What is the minimum wage in each state for 2023?
Don’t get blindsided by an unexpected compliance change. To make it easier to identify updates, we’ve provided a list of 2023 and 2022’s hourly minimum wages by state. Keep in mind this list doesn’t consider every city or municipality with its own wage requirement.
Understand these hourly minimum wage rates for any of the states where your business operates:
| State | 2023 Minimum Hourly Wage | 2022 Minimum Hourly Wage |
| Alabama | $7.25 | $7.25 |
| Alaska | $10.85 | $10.34 |
| Arizona | $13.85 | $12.80 |
| Arkansas | $11.00 | $11.00 |
| California | $15.50 for all employers. | $14.00 for employers with 25 or less workers; $15.00 for larger businesses. |
| Colorado | $13.65 | $12.56 |
| Connecticut | $15.00 | $14.00 |
| Delaware | $11.75 | $10.50 |
| Florida | $12.00 | $11.00 |
| Georgia | $7.25 | $7.25 |
| Hawaii | $12.00 | $12.00 |
| Idaho | $7.25 | $7.25 |
| Illinois | $13.00 | $12.00 |
| Indiana | $7.25 | $7.25 |
| Iowa | $7.25 | $7.25 |
| Kansas | $7.25 | $7.25 |
| Kentucky | $7.25 | $7.25 |
| Louisiana | $7.25 | $7.25 |
| Maine | $13.80 | $12.75 |
| Maryland | $13.25 for employers with 15 or more workers; $12.80 for smaller businesses. | $12.50 for employers with 15 or more workers; $12.20 for smaller businesses. |
| Massachusetts | $15.00 | $14.25 |
| Michigan | $10.10 | $9.87 |
| Minnesota | $8.63 for small employers and $10.59 for large employers.* | $8.42 for small employers and $10.33 for large employers. |
| Mississippi | $7.25 | $7.25 |
| Missouri | $12.00 | $11.15 |
| Montana | $9.95 | $9.20 |
| Nebraska | $10.50 | $9.00 |
| Nevada | $10.25 for employers offering qualifying health benefits; $11.25 for all others. | $9.50 for employers offering qualifying health benefits; $10.50 for all others. |
| New Hampshire | $7.25 | $7.25 |
| New Jersey | $14.13 for most employers; $12.93 for seasonal and small employers who have less than six workers. | $13.00 for most employers; $11.90 for seasonal and small employers who have less than six workers. |
| New Mexico | $12.00 | $11.50 |
| New York | $15.00 for New York City, Long Island and Westchester; $14.20 for the rest of the state. | $15.00 for New York City, Long Island and Westchester; $13.20 for the rest of the state. |
| North Carolina | $7.25 | $7.25 |
| North Dakota | $7.25 | $7.25 |
| Ohio | $10.10 | $9.30 |
| Oklahoma | $7.25 | $7.25 |
| Oregon | $15.45 for employers in the Portland metro; $13.20 for non-urban counties; and $14.20 for all others. | $14.75 for employers in the Portland metro; $12.50 for non-urban counties; and $13.50 for all others. |
| Pennsylvania | $7.25 | $7.25 |
| Rhode Island | $13.00 | $12.25 |
| South Carolina | $7.25 | $7.25 |
| South Dakota | $10.80 | $9.95 |
| Tennessee | $7.25 | $7.25 |
| Texas | $7.25 | $7.25 |
| Utah | $7.25 | $7.25 |
| Vermont | $13.18 | $12.55 |
| Virginia | $12.00 | $11.00 |
| Washington, D.C. | $17.00 | $16.10 |
| Washington | $15.74 | $14.49 |
| West Virginia | $8.75 | $8.75 |
| Wisconsin | $7.25 | $7.25 |
| Wyoming | $7.25 | $7.25 |
*Minnesota defines “large employers” as businesses with $500K or more in gross revenue.
Which state has the lowest minimum wage?
Georgia and Wyoming’s hourly minimum wage are tied at $5.15. However, employers covered by the FLSA must adhere to the federal requirement of $7.25.
Which state has the highest minimum wage?
While Washington is technically the state with the highest hourly minimum wage at $15.74, Washington, D.C. has the highest rate across the country: $17.00!
Adhering to federal and state minimum hourly wage guidance helps you remain compliant and ensures your success. And a powerful government and compliance tool helps you stay on top of new laws and regulations that affect your business.
Follow the Paycom blog for regular compliance updates and more.
DISCLAIMER: The information provided herein does not constitute the provision of legal advice, tax advice, accounting services or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional legal, tax, accounting or other professional advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation and for your particular state(s) of operation.
I have a solid grasp of minimum wage laws, both at the federal and state levels, with an understanding of their historical context and current variations. The Federal Fair Labor Standards Act (FLSA), signed by President Franklin D. Roosevelt in 1938, marked the beginning of a federal minimum wage, set initially at a mere 25 cents per hour. Since then, the federal minimum wage has seen periodic updates. For instance, the current federal minimum wage stands at $7.25 per hour, a rate that has remained unchanged since 2009, demonstrating the infrequency of updates to this standard.
I'm aware that while the federal minimum wage acts as a baseline, individual states have the authority to set their own minimum wage rates. This leads to considerable variation across the United States. For instance, Washington, D.C., boasts the highest minimum wage at $17.00 per hour, significantly surpassing the federal standard. Conversely, states like Georgia and Wyoming tie for the lowest state-set minimum wage at $5.15, although the FLSA mandates compliance with the federal rate of $7.25 for eligible employers.
Understanding these disparities is crucial for businesses to remain compliant with the law. Compliance entails not only aligning with federal requirements but also staying abreast of the specific minimum wage regulations in the states where businesses operate. For instance, as of 2023, California mandates $15.50 per hour for all employers, whereas neighboring Nevada requires $11.25 for certain employers and $10.25 for others based on offered health benefits.
Consulting legal counsel for guidance remains a prudent step for businesses navigating these diverse and evolving minimum wage laws. While this information provides a helpful overview, it's imperative to seek professional advice tailored to the specific circ*mstances and locations in which a business operates. Additionally, staying updated through resources like the Paycom blog, which offers compliance updates, ensures businesses can adapt to changes effectively and maintain adherence to relevant minimum wage regulations.
