The minimum wage went up in 23 states on Jan. 1, 2023. Those increases, which benefit roughly 8.4 million Americans, ranged from 23 cents in Michigan to $1.50 in Nebraska.
Some were the result of automatic adjustments, while others came via new state laws or ballot initiatives.
"The biggest factor in the minimum wage adjustments for 2023 is the high rate of inflation seen in the last year," Deirdre Kennedy, senior payroll analyst at the data research firm Wolters Kluwer, said in astatement. "Different states are setting their own rules, including a cap on the percentage minimum wage can increase."
Washington state continues to have the nation's highest base hourly rate, going from $14.49 in 2022 to $15.74 at the start of 2023.
Read on to find out what the current minimum wage is in your state, as well as where the federal minimum wage came from and arguments for and against raising it.
For more on income, learn the right way to ask for a raise and how much Social Security benefits have gone up in 2023.
What's the minimum wage in my state?
Nearly two dozen states increased their minimum wage on Jan. 1, when measures that passed last year went into effect. (Connecticut, Florida, Nevada and Oregon are slated to bump up their base pay by September.)
Below is a table with the minimum wage in all 50 states and Washington, DC, according to data from theDepartment of Laborand human resources companyPaycor.
Individual cities and municipalities may have a minimum wage that's higher than the state level. In addition, 20 states have a minimum wage that's equal to or below the federal rate -- or have no minimum at all. In those cases, the federal minimum of $7.25 is the default pay rate.
| State | Minimum wage in 2022 | Minimum wage in 2023 |
|---|---|---|
Alabama | No state minimum | |
Alaska | $10.34 | $10.85 |
Arizona | $12.80 | $13.85 |
Arkansas | $11 | |
California | $14 for businesses with 25 or fewer employees, $15 for businesses with 26 or more employees | $15.50 for all businesses |
Colorado | $12.56 | $13.65 |
Connecticut | $14 | $15 (as of July 1, 2023) |
Delaware | $10.50 | $11.75 |
Washington, DC | $15.20, $5.35 for tipped employees | $15.20, $6 for tipped employees (as of Jan. 1, 2023), $8 for tipped employees (as of July 1, 2023) |
Florida | $11 | $12 (as of Sept. 1, 2023) |
Georgia | $5.15 | |
Hawaii | $10.10 | |
Idaho | $7.25 | |
Illinois | $12 | $13 |
Indiana | $7.25 | |
Iowa | $7.25 | |
Kansas | $7.25 | |
Kentucky | $7.25 | |
Louisiana | No state minimum | |
Maine | $12.75 | $13.80 |
Maryland | $12.50 | $13.25 |
Massachusetts | $14.25 | $15 |
Michigan | $9.87 | $10.10 |
Minnesota | $10.33 | $10.59 |
Mississippi | No state minimum | |
Missouri | $11.15 | $12 |
Montana | $9.20 | $9.95 |
Nebraska | $9 | $10.50 |
Nevada | $9.50 if the employee is offered benefits, $10.50 if not | $10.25 for companies that offer benefits, $11.25 for those that don't (effective July 1, 2023) |
New Hampshire | No state minimum | |
New Jersey | $13 | $14.13, $12.93 for seasonal employees and those at companies with fewer than six employees |
New Mexico | $11.50 | $12 |
New York | $13.20 ($15 in New York City, Long Island and Westchester County) | $14.20 in Upstate New York |
North Carolina | No state minimum | |
North Dakota | No state minimum | |
Ohio | $9.30 | $10.10 |
Oklahoma | $7.25 | |
Oregon | $13.50, Portland metro area: $14.75, nonurban areas $12.50 | Will be adjusted on July 1, 2023, for urban and nonurban areas based on an increase to the US city average for the Consumer Price Index |
Pennsylvania | No state minimum | |
Rhode Island | $12.25 | $13 |
South Carolina | No state minimum | |
South Dakota | $9.95 | $10.80 |
Tennessee | No state minimum | |
Texas | No state minimum | |
Utah | No state minimum | |
Vermont | $12.55 | $13.18 |
Virginia | $11 | $12 |
Washington | $14.49 | $15.74 |
West Virginia | $8.75 | |
Wisconsin | No state minimum | |
Wyoming | $5.15 |
These states have passed legislation to reach a $15 minimum wage in the coming years:
- New Jersey (2024).
- Delaware (2025).
- Illinois (2025).
- Maryland (2025).
- Rhode Island (2025).
- Florida (2026).
- Virginia (2026).
What is the federal minimum wage?
The federal minimum wage has been $7.25 since 2009.
While many states require employers to pay more, $7.25 is the default in the 20 states with a minimum wage that's either equal to or below the federal rate, or that have no minimum.
In 2021, President Joe Biden issued an executive order instituting a $15 minimum wage for federal contractors.
Who earns minimum wage?
The Bureau of Labor Statisticsreports that hourly paid workers earning the federal minimum wage (or less) made up 1.4% of the American workforce in 2021.
They live in both rural and urban areas, according to the Economic Policy Institute, with 44.8% working full-time and over half (54.9%) age 25 or older.
More than 40% of minimum-wage earners have at least some college experience.
What is the case for raising the federal minimum wage?
Signed by President Franklin D. Roosevelt in 1938, the Fair Labor Standards Act established a mandatory federal minimum wage of 25 cents an hour.
The minimum wage initially kept pace with inflation, but that stopped in the late 1960s. If it still followed that trend, the base hourly wage in this country would be over $23 an hour, according to the Center for Economic and Policy Research.
Currently, a worker receiving the federal minimum wage and working 40 hours a week, 52 weeks a year, earns about $15,080 before taxes. In 2022, the national poverty guideline for a family of two was $18,310 a year, according to the Department of Health and Human Services.
In an April 2021Pew Research Center poll, more than six in 10 respondents (62%) said they support raising the minimum wage to $15 an hour.
What is the case against raising the minimum wage?
Lower-paying entry-level jobs are needed "to start a worker's ascent up the career ladder," according to the US Chamber of Commerce.
"If they cannot get on the ladder because the minimum wage cuts off the first rung, they may be prevented from climbing their way up the ladder to bigger and better jobs," the organization testified in 2021.
"A higher minimum wage in a high-income, tech-heavy city like Seattle may not spell doom for small businesses there because they should have more latitude to pass the increased cost on to their customers," it added. "But that same latitude does not apply in Oxford, Mississippi."
Raising the federal minimum wage to $15 an hour by 2025 would also reduce employment by 1.4 million, according to a 2021 report by the Congressional Budget Office, and increase the federal deficit $54 billion over the next decade.
For more on personal finance, here's what to know about the state of inflation and why everything seems so expensive.
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Minimum Wage Increases in 2023
According to the article, the minimum wage increased in 23 states on January 1, 2023. These increases benefit approximately 8.4 million Americans. The range of increases varied from 23 cents in Michigan to $1.50 in Nebraska. Some of these increases were the result of automatic adjustments, while others came through new state laws or ballot initiatives [[1]].
Factors Influencing Minimum Wage Adjustments
The article mentions that the high rate of inflation seen in the last year was the biggest factor in the minimum wage adjustments for 2023. Different states have set their own rules, including a cap on the percentage by which the minimum wage can increase [[1]].
State with the Highest Minimum Wage
Washington state currently has the highest base hourly rate in the nation. It increased from $14.49 in 2022 to $15.74 at the start of 2023 [[1]].
Minimum Wage by State
The article provides a table with the minimum wage in all 50 states and Washington, DC. It also mentions that individual cities and municipalities may have a minimum wage that is higher than the state level. Additionally, 20 states have a minimum wage that is equal to or below the federal rate, or have no minimum wage at all. In such cases, the federal minimum wage of $7.25 applies [[1]].
Future Plans for $15 Minimum Wage
Several states have passed legislation to reach a $15 minimum wage in the coming years. These states include New Jersey (2024), Delaware (2025), Illinois (2025), Maryland (2025), Rhode Island (2025), Florida (2026), and Virginia (2026) [[1]].
Federal Minimum Wage
The federal minimum wage has been $7.25 since 2009. While many states require employers to pay more, $7.25 is the default minimum wage in the 20 states with a minimum wage that is either equal to or below the federal rate, or that have no minimum wage at all. It is worth noting that in 2021, President Joe Biden issued an executive order instituting a $15 minimum wage for federal contractors [[1]].
Who Earns Minimum Wage?
According to the Bureau of Labor Statistics, hourly paid workers earning the federal minimum wage or less made up 1.4% of the American workforce in 2021. These workers live in both rural and urban areas, with 44.8% working full-time and over half (54.9%) being 25 years or older. More than 40% of minimum-wage earners have at least some college experience [[1]].
Arguments for Raising the Federal Minimum Wage
Supporters of raising the federal minimum wage argue that the current rate is insufficient to meet the cost of living. They point out that if the minimum wage had kept pace with inflation since its establishment in 1938, it would be over $23 an hour today. Raising the minimum wage is seen as a way to address income inequality and lift workers out of poverty [[1]].
Arguments Against Raising the Minimum Wage
Opponents of raising the minimum wage argue that it could lead to job losses, particularly in lower-paying entry-level positions. They suggest that a higher minimum wage may discourage employers from hiring or result in reduced work hours. Additionally, they argue that the impact of a higher minimum wage may vary depending on the local economy, with small businesses facing greater challenges in absorbing the increased costs [[1]].
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