Effective January 1, 2023, twenty-three states increased their minimum wage thresholds.  The below reference chart provides detailed information regarding new wage thresholds for each applicable state.

Washington will have the highest minimum pay rate at $15.74 per hour.  Nebraska implemented the highest percentage-based wage adjustment, increasing its minimum wage from $9.00 to $10.50, resulting in a 16.67% increase.  California instituted a more modest increase of 3.33%, raising the minimum wage from $15.00 to $15.50, while New York saw an increase of 7.58%, from $13.20 to $14.20.  Washington, D.C. last saw an increase in its minimum wage on July 1, 2022, when the threshold rose from $15.20 per hour to $16.10 per hour.  Accordingly, the District will not see another minimum wage increase for most workers until July 1, 2023, when the rate is expected to increase to $17.00 per hour. 

With the exception of Alaska, California, Minnesota, Montana, and Washington, the states listed below similarly increased their minimum hourly wages for tipped employees.  A tipped employee, as defined by the federal Fair Labor Standards Act, is one that customarily and regularly receives more than $30.00 per month in tips (corresponding state definitions of tipped employees vary).  Effective January 1, 2023, the minimum wage for tipped employees in New York and Washington, D.C. increased by $.65 per hour.

The current federal minimum wage remains at $7.25 per hour, but the Biden Administration has suggested that this rate could be raised to $15.00.

For more information and updates on changing wage laws, or for any other questions, please contact Nelson Mullins’s Labor and Employment group.

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