2023 Minimum Wage Updates: What Changes Are Coming by State?

Starting in 2023, 13 U.S. states will receive a minimum wage increase. In most cases, the wage increase will go into effect on January 1, 2023, though a few states have a mid-year increase scheduled for July 1.

The federal minimum wage (currently $7.25) will remain the same. Note that many California localities are adding an additional wage increase based on the consumer price index (CPI), which is something to be mindful of as the year progresses.

Check the following chart to see whether your business is impacted by the coming changes.

State2023 Minimum WagePrevious Minimum Wage (2022)Minimum Wage by Locality
Alabama$7.25 (no state minimum, Federal rate applies)$7.25 
$10.85 (tipped employees)
$12.80 Flagstaff: $16.80
Tucson: $13.85
$2.63 (tipped employees)
California$15.50$15.00Alameda: $15.75 + CPI (up to 5%)
Belmont: $16.75 + CPI
Berkeley: $16.99 + CPI
Cupertino: $17.20 + CPI
Daly City: $16.07
East Palo Alto:  $16.50 + CPI
El Cerrito: $17.35 + CPI
Emeryville: $17.68 + CPI
Foster City: $16.50
Fremont: $16.00 + CPI
Half Moon Bay: $16.45 
Hayward: $16.34 (for companies with more than 25 employees)$15.50 (for any company with 25 or fewer employees)
Los Altos: $17.20
Los Angeles County: $15.96 + CPI
Los Angeles: $16.04 + CPI
Malibu: $15.96 + CPI
Menlo Park: $16.20
Milpitas: $16.40 + CPI
Mountain View: $18.15
Novato: $16.32 (for businesses with 100 or more workers)$16.07 (for companies with 26-99 workers)$15.53 (for businesses with fewer than 26 staff members)
Oakland: $15.97
Palo Alto: $17.25
Pasadena: $16.11 + CPI
Petaluma: $17.06
Redwood City: $17.00
Richmond: No increase announced, remains at $15.54
San Carlos: $16.32
San Diego: $16.25
San Francisco: increased to $16.99 in July 2022
San Jose: $17.00
San Leandro: remaining at state level of $15.50
San Mateo: rising to $16.75
Santa Clara: $17.20
Santa Monica: CPI increase TBA on or before Jan. 1
Santa Rosa: $17.06Sonoma: $17.00 + CPI (for employers with 25 or more staff members); $16.00 + CPI (for businesses with fewer than 25 workers)
South San Francisco: $16.70
Sunnyvale: rising to $17.95
West Hollywood: Starting Jan. 1, minimum wage rates will be as follows:$18.35 (hotel employees)$17.50 (for companies with 50 or more workers)$17.00 (for companies with fewer than 50 workers)On July 1, all rates will rise to $18.86 
Colorado$13.65$12.56Denver: $17.29
Washington D.C.$16.10$15.20 
$7.25 (for companies required to abide by the Fair Labor Standards Act) 
Illinois$13.00$12.00 Chicago: For companies with over 20 workers:$15.40, $9.24 (if receiving tips)For companies with 1-20 workers:$14.50, $8.70 (if receiving tips)
Cook County: If not receiving tips: $13.35Or $7.40 for staff who accept tips
Maine$12.75$12.75Portland: $14.00; $7.00 (tipped employees who earn at least $100 per month in tips)
Maryland$13.25$12.50Montgomery County: For businesses with over 50 employees:$15.00
For businesses with 1-50 employees:$14.50
$8.63 (tipped employees)
$10.33Minneapolis: For businesses with more than 100 workers:$15.19
For businesses with under 100 workers:$13.50
Starting July 1, businesses with 100 staff members or fewer will pay $14.50St. Paul: Starting in January, city employees and businesses with over 10,000 staff members must pay $15.19.
For businesses with 101-10,000 workers, the rate will increase to $13.50 in Jan. and to $15.00 on July 1.
For businesses with 100 workers or fewer, the rate will be $12.00 starting Jan. 1, and rise to $13.00 by July 1.
$4.00 (tipped employees)
$10.25 (tipped employees)
$8.50 (if employer provides health insurance
New Hampshire$7.25$7.25 
New Jersey$14.13$13.00  
New Mexico$12.00$11.50Albuquerque: $12.00; $7.20 (for employees who accept tips)
Bernalillo: $12.00
Las Cruces: $12.00; $4.78 (for tipped employees)
Santa Fe (city): will rise to $12.95 on Jan. 1 for all employees
Santa Fe (county): $12.95; $3.88 (for employees who accept at least $100 per month in tips)
New York$15.00
$14.20 (tipped employees)
$15.00 (fast food)
Airport Employees: $19.00  
North Carolina$7.25$7.25 
North Dakota$7.25$7.25 
$2.00 (tipped employees)
Oregon$13.50$13.50Portland: $14.75, with a pending increase starting July 1 based on CPI 
Non-urban counties: $12.50, with a pending increase starting July 1 based on CPI
Rhode Island$13.00$12.25 
South Carolina$7.25$7.25 
South Dakota$10.80$9.95  
Washington$15.74$14.49Seattle: $18.69; $16.50 (for employers who pay at least $2.19/hr in medical benefits or employees who don’t earn $2.19/hr in tips)
West Virginia$8.75$8.75 
$7.25 (for companies that must abide by the Fair Labor Standards Act)
$7.25 (for companies that must abide by the Fair Labor Standards Act)

* Goes into effect on  1 July 2023.

What State Has the Highest Minimum Wage in 2023?

At $15.74 per hour, Washington State has the highest minimum wage in 2023, followed closely by California at $15.50. However, the District of Columbia offers $16.10.

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