In 2023, 27 states will increase their minimum wages – with most of these hikes taking effect on January 1.
California will have the highest minimum wage rate at $15.50, up from the $15 it set in 2022. Only Washington D.C. has a higher minimum wage of $16.10. D.C.’s wage will increase again in July, in proportion to the increase in the Consumer Price Index, according to its Department of Employment Services.
Oregon and Nevada won’t see their minimum wages increase until July. Then, Oregon’s rate will rise from its current $13.50 to a yet-to-be-determined number based on the CPI. In Nevada, the minimum wage will increase to $10.25 for employers providing qualifying health benefits, and $11.25 for those who don’t.
Two states – Connecticut and Massachusetts – will satisfy their scheduled incremental increases to bring their minimum wages to $15. Six other states also will move a step closer to reaching that milestone in 2023:
- New Jersey, by 2024
- Delaware, Illinois, Maryland (for large employers), and Rhode Island, by 2025
- Florida and Maryland (for small employers), by 2026
Florida’s incremental minimum wage increase will go into effect at the end of September.
Despite more than half of the United States preparing for a minimum wage hike in the new year, the minimum wage in 20 states remains the same as the federal rate of $7.25 an hour.
In the five states that haven’t adopted a minimum wage – Alabama, Louisiana, Mississippi, South Carolina, and Tennessee – the federal minimum wage is used.
The following states will raise their minimum wages by at least $1 in 2023:
- Arizona ($12.80 to $13.85)
- Colorado ($12.56 to $13.65)
- Connecticut ($14 to $15)
- Delaware ($10.50 to $11.75)
- Florida ($10 to $12)
- Illinois ($12 to $13)
- Maine ($12.75 to $13.80)
- Nebraska ($9 to $10.50)
- New Jersey ($13 to $14)
- New York ($13.20 to $14.20)
- Virginia ($11 to $12)
Other states raising their minimum wages include Alaska, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nevada, New Mexico, Ohio, Rhode Island, South Dakota, Vermont, and Washington.
