Currently, the federal minimum wage rate is $7.25 per hour (or $2.13 for tipped workers), which was set back in 2009.
If your city or state minimum wage is higher than the federal minimum wage, you’ll need to pay your qualified workers the highest amount.
2022 and 2023 minimum wage laws
For each state, we’ve included the state minimum wage rates for the five largest cities, or the cities with independent minimum wages, if there are less than five.
Keep in mind that this is not an inclusive list of all city, county, and municipality minimum wages, or minimum wages for specific occupations if certain areas offer different minimum wages for certain professions. You may also need to look into other legal considerations, as well as check whether local laws apply, as well as restrictions and conditions of the tipped minimum wage by state.
Q: What Is the Federal Minimum Wage?
Taxes| Region: State/County/City | 2022 Minimum wage per hour | 2023 Minimum wage per hour | 2022 Minimum tipped wage per hour | 2023 Minimum tipped wage per hour |
| Alabama | $7.25 (federal, no state minimum) | $7.25 (federal, no state minimum) | $2.13 | $2.13 |
| Alaska | $10.34 | $10.85 | $10.34 | $10.85 |
| Arizona | $12.80 | $13.85 | $9.80 | $10.85 |
| Flagstaff | $15.50 | $16.80 | $13 | $14.80 |
| Arkansas | $11 | $11 | $2.63 | $2.63 |
| California | $15 for businesses with 26+ employees; $14 for businesses with 25 or fewer employees | $15.50 | $15 for businesses with 26+ employees; $14 for businesses with 25 or fewer employees | $15.50 |
| California – Los Angeles County | $15.96 since 7/1/22 | $16.90 starting 7/1/2023 | $15.96 | $16.90 |
| California – Los Angeles | $16.04 since 7/1/22 | $16.78 starting 7/1/2023 | $16.04 since 7/1/22 | $16.78 starting 7/1/2023 |
| California – San Diego | $15 | $16.30 | $15 | $16.30 |
| California – San Francisco | $16.32 until 6/30/22 and $16.99 from 7/1/22 | $16.99 until 6/30/23 and $18.07 from 7/1/23 | $16.32 until 6/30/22 and $16.99 from 7/1/22 | $16.99 until 6/30/23 and $18.07 from 7/1/23 |
| California – San Jose | $16.20 | $17 | $16.20 | $17 |
| Colorado | $12.56 | $13.65 | $9.54 | $10.63 |
| Connecticut | $14.00 | $15 starting 6/1/23 | $6.38 for waitstaff; $8.23 for bartenders | $6.38 for waitstaff; $8.23 for bartenders |
| Delaware | $10.50 | $11.75 | $2.23 | $2.23 |
| Florida | $11.00 | $12 starting 9/30/23 | $7.98 | $7.98 |
| Georgia | $5.15 (employers subject to the Fair Labor Standards Act must pay the $7.25 federal minimum wage) | $5.15 (employers subject to the Fair Labor Standards Act must pay the $7.25 federal minimum wage) | $2.13 | $2.13 |
| Hawaii | $10.10 | $12 (10/2/2022 – 12/31/2023) | $9.35 | $11 (10/2/2022 – 12/31/2023) |
| Idaho | $7.25 (training minimum wage of $4.25/hour can be paid to employees younger than 20 for the first 90 calendar days of work) | $7.25 (training minimum wage of $4.25/hour can be paid to employees younger than 20 for the first 90 calendar days of work) | $3.35 | $3.35 |
| Illinois | $12.00 | $13 (employers may pay $12.50 for the first 90 days of work) | $7.80 | $7.80 |
| Illinois – Chicago | $14.50 effective 7/1/22 for employers with 4 to 20 workers; $15.40 for employers with 21 or more workers | $15 by 7/1/23 for small employers and for large employers, increase starts 7/1/23, according to the Consumer Price Index or 2.5%, whichever is lower | $8.70 effective 7/1/22 for employers with 4 to 20 workers; $9.24 for employers with 21 or more workers | No change disclosed as of the date this article was updated |
| Illinois – Cook County | $13.70 starting 7/1/2023 | $8 starting 7/1/2023 | ||
| Indiana | $7.25 | $7.25 | $2.13 | $2.13 |
| Iowa | $7.25 (employers may pay $6.35 for the first 90 days of work) | $7.25 (employers may pay $6.35 for the first 90 days of work) | $4.35 | $4.35 |
| Kansas | $7.25 | $7.25 | $2.13 | $2.13 |
| Kentucky | $7.25 | $7.25 | $2.13 | $2.13 |
| Louisiana | $7.25 (federal, no state minimum) | $7.25 (federal, no state minimum) | $2.13 | $2.13 |
| Maine | $12.75 | $13.80 | $6.38 | $6.90 |
| Maine – Portland | $13.00 | $14.00 | $6.50 | $7.00 |
| Maryland | $12.50 | $13.25 | $3.63 | $3.63 |
| Maryland – Montgomery County | $14 for employers with 10 or fewer employees; $14.50 for employers with 50 or fewer employees; $15.65 for employers with 51 or more employees | $14.50 for employers with 10 or fewer employees; $15 for employers with 50 or fewer employees; $16.70 for employers with 51 or more employees | $4 | $4 |
| Massachusetts | $14.25 | $15.00 | $6.15 | $6.75 |
| Michigan | $9.87 | $10.10 | $3.84 | $3.84 |
| Minnesota | $10.33 for large employers, if your gross revenue is at least $500,000 or more; $8.42 for other state min. wages, if your gross revenue is less than $500,000 | $10.59 for large employers, if your gross revenue is at least $500,000 or more; $8.63 for other state min. wages, if your gross revenue is less than $500,000 | $10.33 for large employers, if your gross revenue is at least $500,000 or more; $8.42 for other state min. wages, if your gross revenue is less than $500,000 | $10.59 for large employers, if your gross revenue is at least $500,000 or more; $8.63 for other state min. wages, if your gross revenue is less than $500,000 |
| Minnesota – Minneapolis | $12.50 through 6/30/22 for small businesses with 100 or fewer employees, and $13.50 for small business starting 7/1/22; $14.25 through 6/30/22 for large businesses with more than 100 employees, and $15 for large business starting 7/1/22 | $13.50 starting 1/1/23 and $14.50 starting 7/1/23 for small businesses; $15.19 for large businesses | $12.50 through 6/30/22 for small businesses with 100 or fewer employees, and $13.50 for small business starting 7/1/22; $14.25 through 6/30/22 for large businesses with more than 100 employees, and $15 for large business starting 7/1/22 | $13.50 starting 1/1/23 and $14.50 starting 7/1/23 for small businesses; $15.19 for large businesses |
| Mississippi | $7.25 (federal, no state minimum) | $7.25 (federal, no state minimum) | $2.13 | $2.13 |
| Missouri | $11.15 | $12.00 | $5.58 | $6 |
| Montana | $9.20 | $9.95 | $9.20 | $9.95 |
| Nebraska | $9.00 | $10.50 | $2.13 | $2.13 |
| Nevada | $8.50 – $9.50 (if provide health insurance, can pay $1 less) up to 6/30/22 and $9.50 – $10.50 from 7/1/22 – 6/30/23 | $11.25 starting 7/1/23 | $8.50 – $9.50 (if provide health insurance, can pay $1 less) up to 6/30/22 and $9.50 – $10.50 from 7/1/22 – 6/30/23 | $11.25 |
| New Hampshire | $7.25 (federal, no state minimum) | $7.25 (federal, no state minimum) | $3.26 | $3.26 |
| New Jersey | $13.00 | $14.13 (Businesses with fewer than 6 employees and seasonal employees pay $12.93) | $5.13 | $5.26 |
| New Mexico | $11.50 | $12.00 | $2.80 | $3 |
| New Mexico – Albuquerque | $11.50 | $12 | $6.90 | $7.20 |
| New Mexico – Bernalillo County | $9.45, but New Mexico $11.50 state min. wage supersedes | New Mexico $12 state min. wage supersedes | $2.80 | $3 |
| New Mexico – Las Cruces | $11.50 | $12 | $4.60 | $4.78 |
| New Mexico – Santa Fe | $12.95 | $14.03 | $12.95 | $14.03 |
| New York | $13.20 ($15.00 for fast food industry) | $14.20 | $11 for service and $8.80 for food service | $11.85 for service and $9.45 for food service |
| New York – Long Island & Westchester County | $15 | $15 | $12.50 for service and $10 for food service | $12.50 for service and $10 for food service |
| New York – New York City | $15 | $15 | $12.50 for service and $10 for food service | $12.50 for service and $10 for food service |
| North Carolina | $7.25 (federal, no state minimum) | $7.25 (federal, no state minimum) | $2.13 | $2.13 |
| North Dakota | $7.25 (federal, no state minimum) | $7.25 (federal, no state minimum) | $4.86 | $4.86 |
| Ohio | $9.30 | $10.10 | $4.65 | $5.05 |
| Oklahoma | $7.25 (federal, no state minimum) | $7.25 (federal, no state minimum) | $3.63 | $3.63 |
| Oregon (standard counties) | $13.50 | Increase starts 7/1/23, based on Consumer Price Index | $13.50 | Increase starts 7/1/23, based on Consumer Price Index |
| Oregon – Portland Metro | $14.75 | Increase starts 7/1/23, will be $1.25 more than min. wage for standard counties | $14.75 | Increase starts 7/1/23, will be $1.25 more than min. wage for standard counties |
| Non-urban Oregon counties | $12.50 | Increase starts 7/1/23, will be $1 less than min. wage for standard counties | $12.50 | Increase starts 7/1/23, will be $1 less than min. wage for standard counties |
| Pennsylvania | $7.25 (federal, no state minimum) | $7.25 (federal, no state minimum) | $2.83 | $2.83 |
| Rhode Island | $12.25 | $13 | $3.89 | $3.89 |
| South Carolina | $7.25 (federal, no state minimum) | $7.25 (federal, no state minimum) | $2.13 | $2.13 |
| South Dakota | $9.95 | $10.80 | $4.98 (i.e., 50% of the min. wage) | $5.40 (i.e., 50% of the min. wage) |
| Tennessee | $7.25 (federal, no state minimum) | $7.25 (federal, no state minimum) | $2.13 | $2.13 |
| Texas | $7.25 (federal, no state minimum) | $7.25 (federal, no state minimum) | $2.13 | $2.13 |
| Utah | $7.25 (federal, no state minimum) | $7.25 (federal, no state minimum) | $2.13 | $2.13 |
| Vermont | $12.55 | $13.18 | $6.28 | $6.59 |
| Virginia | $11 | $12 | $2.13 | $2.13 |
| Washington (State) | $14.49 | $15.74 | $14.49 | $15.74 |
| Washington – Seattle | $17.27 for large employers (more than 500 employees); $15.75 for small employers (500 or less employees) | $18.69 for large employers; $16.50 for small employers | $17.27 for large employers (more than 500 employees); $15.75 for small employers (500 or less employees) | $18.69 for large employers; $16.50 for small employers |
| Washington – SeaTac | $17.54 for hospitality and transportation workers | $19.06 for hospitality and transportation workers | $17.54 for hospitality and transportation workers | $19.06 for hospitality and transportation workers |
| Washington, D.C. | $15.20 until 6/30/22 | $16.10 from 7/1/22 – 6/30/23; $17 starting 7/1/23 | $5.05 until 6/30/22 | $5.35 from 7/1/22 – 6/30/23; $8 starting 7/1/23 |
| West Virginia | $8.75 | $8.75 | $2.62 | $2.62 |
| Wisconsin | $7.25 (federal, no state minimum) | $7.25 (federal, no state minimum) | $2.33 | $2.33 |
| Wyoming | $5.15 (employers subject to the Fair Labor Standards Act must pay the $7.25 federal minimum wage) | $5.15 (employers subject to the Fair Labor Standards Act must pay the $7.25 federal minimum wage) | $2.13 | $2.13 |
Why are there different minimum wage laws within states?
Many elected officials agree that the minimum wage hasn’t kept up with inflation. But there’s an endless debate about how to actually solve the problem.
Here’s a quick breakdown of the pros and cons of raising the minimum wage:
| Proponents of a higher minimum wage believe it will… | Opponents of a higher minimum wage believe it will… |
| Stimulate job growth | Raise the price of goods |
| Improve income inequality | Increase unemployment |
| Decrease crime rates | Increase crime rates |
| Improve the national economy | Lead to outsourcing |
Obviously, reconciling these two opposing positions is a difficult policy problem. That’s why many cities and states have taken it upon themselves to raise their own minimum wages. And in response, some business owners are getting creative with how they’re handling minimum wage hikes.
Many localities are working toward a $15 per hour minimum wage, which equates to $31,200 per year based on a 40-hour week. The California minimum wage, for example, starts at $15.50, and may be higher depending on your city and number of employees.
The SeaTac area Washington state has the highest minimum wage at $19.06 for hospitality and transportation workers. The lowest minimum wages are in Georgia and Wyoming, at $5.15 per hour—although most employers in those states will still need to pay the federal minimum wage.
What’s the difference between minimum wage and tipped wage?
The Fair Labor Standards Act (FLSA) sets the federal minimum wage at $7.25 per hour for “covered, nonexempt workers.” If you fall in at least one of the below categories, your employees are covered under this law:
- You have at least two employees.
- You employ domestic workers, like a housekeeper, cook, or nanny.
- Your business produces at least $500,000 in sales or services.
- Your business is a hospital, school, preschool, or government agency, or it provides medical or nursing care.
- Your business is involved in interstate commerce, such as selling products over state lines or working closely with people or companies in other states.
You may also have employees who are exempt from minimum wage laws. Depending on the work they do, they can even be exempt on some weeks and nonexempt on other weeks.
Below are some types of employees who might be exempt—although we recommend consulting with an employment lawyer first.
- Farmworkers who work on small farms
- Seasonal and recreational employees, if your company only operates for seven or fewer months each year, or if your average receipts for half of the previous calendar year were less than 33.33% of the average receipts for the other half of the year
- Salaried employees who work in executive, administrative, professional, and outside sales roles
There’s another big category of employees who don’t receive the minimum wage: tipped employees. The FLSA sets the minimum wage for servers and other tipped employees at $2.13, as long as the tips and the hourly wages combine to meet the federal minimum wage. Your employee must also earn an average of more than $30 a month in tips.
If the combination of tips and hourly wages don’t meet the federal minimum wage of $7.25 an hour, you’ll need to make up the difference.
Are there certain types of workers who don’t qualify for the minimum wage?
Yes.
In certain circumstances, other employees may be exempt from the minimum wage. They include:
- Employees with disabilities that affect their earning capacity or work ability. These disabilities may include blindness, mental illness, developmental disabilities, and drug and alcohol addiction. In order to pay lower wages to these employees, you’ll need to apply for a certificate from the Wage and Hour Division of the U.S. Department of Labor (DOL).
- Full-time students who work in retail, service, or agriculture, or who work for a college or university. With a certificate from the DOL, you can pay students 85% (or more) of the minimum wage. However, students can work no more than eight hours in one day or 20 hours in a week during the school year, or 40 hours per week when school isn’t in session.
- Student learners currently enrolled in vocational education. These employees can be paid no less than 75% of the minimum wage.
- Employees under 20 years old, for the first 90 days they work for you. During those days—or once they hit their 20th birthday, whichever comes first—you may set their minimum wage as low as $4.25 per hour.
Should I follow federal, state, or local minimum wage laws?
You should know about all of them, but follow the one that’s the highest.
If your state has a minimum wage, your employees are always entitled to the higher wage or the law that offers the most benefits, whether that be federal or state.