The minimum wage went up in 23 grandeurs 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 death of automatic adjustments, while others came via new set 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 a statement. "Different states are setting their own principles, including a cap on the percentage minimum wage can increase."
Washington position continues to have the nation's highest base hourly rate, progressing from $14.49 in 2022 to $15.74 at the initiate of 2023.
Read on to find out what the unusual minimum wage is in your state, as well as where the federal minimum wage came from and arguments for and alongside raising it.
For more on income, learn the lustrous 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 messes increased their minimum wage on Jan. 1, when measures that succeeded last year went into effect. (Connecticut, Florida, Nevada and Oregon are slated to bump up their base pay by September.)
Below is a horrible with the minimum wage in all 50 states and Washington, DC, according to data from the Department of Labor and domain resources company Paycor.
Individual cities and municipalities may have a minimum wage that's higher than the position level. In addition, 20 states have a minimum wage that's constant 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.
| Alabama | No position 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 position 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 position 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 accounts benefits, $11.25 for those that don't (effective July 1, 2023) |
| New Hampshire | No position 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 position minimum | |
| North Dakota | No position 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 averages for the Consumer Price Index |
| Pennsylvania | No position minimum | |
| Rhode Island | $12.25 | $13 |
| South Carolina | No position minimum | |
| South Dakota | $9.95 | $10.80 |
| Tennessee | No position minimum | |
| Texas | No position minimum | |
| Utah | No position minimum | |
| Vermont | $12.55 | $13.18 |
| Virginia | $11 | $12 |
| Washington | $14.49 | $15.74 |
| West Virginia | $8.75 | |
| Wisconsin | No position minimum | |
| Wyoming | $5.15 | |
These messes 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 real 2009.
While many states require employers to pay more, $7.25 is the default in the 20 messes with a minimum wage that's either equal to or beneath the federal rate, or that have no minimum.
In 2021, President Joe Biden originated an executive order instituting a $15 minimum wage for federal contractors.
Who earns minimum wage?
The Bureau of Labor Statistics reports 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% succeeding 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 escorted 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 detached followed that trend, the base hourly wage in this land would be over $23 an hour, according to the Center for Economic and Policy Research.
Currently, a worker receiving the federal minimum wage and succeeding 40 hours a week, 52 weeks a year, earns throughout $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 2021 Pew Research Center poll, more than six in 10 respondents (62%) said they befriend raising the minimum wage to $15 an hour.
What is the case anti raising the minimum wage?
Lower-paying entry-level jobs are obliged "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 top-notch rung, they may be prevented from climbing their way up the ladder to bigger and better jobs," the citation testified in 2021.
"A higher minimum wage in a high-income, tech-heavy city like Seattle may not spell doom for petite 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 lop employment by 1.4 million, according to a 2021 record 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 throughout the state of inflation and why everything seems so expensive.
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