The Federal Standard Minimum wage of $7.25/hour has not increased since 2009 and is now the longest stretch in the nation’s history without a federal minimum wage bump.
This situation has prompted smaller jurisdictions to implement minimum wage laws over the past few years. As a result, states, counties, and cities nationwide are increasing their minimum wage starting on July 1, 2023.
Here is a list of new minimum wage changes:
California
Several cities in California are increasing their minimum wage effective July 1, 2023. We now have a new city with the highest minimum wage for all workers: West Hollywood, CA
- Alameda – $16.52/hour
- Berkeley – $18.07/hour
- Emeryville – $18.67/hour
- Fremont – $16.80/hour
- Los Angeles – $16.78/hour
- Malibu – 16.90/hour
- Milpitas – 17.20/hour
- Pasadena – $16.93/hour
- San Francisco – $18.07/hour
- Santa Monica – 16.90/hour
- West Hollywood – $19.08/hour – highest minimum wage for all workers in the U.S.
Los Angeles County (unincorporated areas) has its own minimum wage rate set at $16.90/hour.
In addition, the minimum wage for Hotel Workers increases in these cities on July 1.
- Los Angeles – $19.73/hour
- Long Beach – $17.55/hour
- Santa Monica – $19.73/hour
Long Beach also has a minimum wage for Concessionaire Workers at $17.36/hour starting July 1, 2023.
Finally, on June 13, 2022, the Los Angeles City Council approved the minimum wage for Healthcare Workers to be $25/hour. Healthcare Worker is defined as “an Employee who is employed to work at or by a Covered Healthcare Facility to provide patient care, healthcare services, or services supporting the provision of healthcare.” Included in the passage of this ordinance was the ability to apply for a one-year waiver. That timeframe has now expired.
Connecticut
Connecticut has an odd schedule for minimum wage increases changing theirs every 11 months. For this year, the change took effect on June 1, 2023. The new minimum wage is $15/hour. On October 15, 2023, the Connecticut Labor Commissioner shall announce the adjustment to the minimum wage to be effective on January 1, 2024. The new minimum wage will be indexed to the Employment Cost Index, which the U.S. Department of Labor calculates.
- The rate for tipped workers, other than bartenders employed in the hotel and restaurant industry, receive a direct wage of $6.38/hour per hour. The direct wage rate for bartenders is $8.23/hour. Tipped employees’ total wages must be no lower than the state minimum wage.
Illinois
- Cook County
The minimum wage for Cook County was set to increase on July 1, 2023, based on the Consumer Price Index (CPI) to $13.70/hour and $8/hour for tipped employees
- Chicago – minimum wage laws starting July 1:
- Large Employers (21 or more employees) – $15.80/hour, tipped workers – $9.48/hour
- Small Employers (20 employees or less) – $15/hour, tipped workers – $9/hour
If a tipped worker’s wages plus tips do not equal at least the full minimum wage, the employer must make up the difference.
In addition, the minimum wage to be paid under city contracts or concessionaire agreements is $16.80 per hour.
Maryland
- Montgomery County (N.W. of Washington DC) minimum wage laws starting July 1
- Large Employers (51 or more employees) – $16.70/hour
- Mid-sized Employers (11– 50 employees) – $15/hour
- Small Employers (10 employees or less) – $14.50/hour
Future rate change increases are tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Minnesota
- Minneapolis minimum wage laws:
- Large Employers (101 or more employees) minimum wage stays at the January 1, 2023 rate of $15.19/hour.
- Small Employers (100 employees or less) minimum wage increases to $14.50/hour.
- St. Paul minimum wage laws changes:
- Macro Employers (10,001 or more employees) – $15.19/hour (effective January 1, 2023)
- Large Employers (101 – 10,000 employees) – $15/hour (effective July 1, 2023)
- Small Employers (6 – 100 employees) – $13/hour (effective July 1, 2023)
- Micro Employers (5 employees or fewer) – $11.50/hour (effective July 1, 2023)
Nevada
Nevada has two minimum wage rates, depending on whether an employer offers health benefits. Effective July 1, 2023, the minimum wage in Nevada is:
- $10.25 for employees who are offered health benefits
- $11.25 for employees who are not offered health benefits
On July 1, 2024, the two-tiered system will be eliminated, and Nevada will go to a minimum wage for all employees of $12/hour.
Oregon
The minimum wage in Oregon is based on county except for the Urban Growth Boundary around the Portland Metro Area. Oregon does not have a separate rate for tipped employees.
Effective July 1, 2023, minimum wage rates in Oregon are:
- Non-urban counties – $13.20/hour
- Standard counties – $14.20/hour
- Portland metro area – $15.45/hour
Click on the Interactive Map to see the minimum wage by county.
In 2024, the minimum wage for standard counties will be adjusted annually based on the increase, if any, to the U.S. City Average Consumer Price Index for All Urban Consumers. The rate for Non-Urban Counties will be $1 lower than Standard Counties and $1.25 higher for the Portland Metro Area.
Washington
The City of Tukwila has a new tiered minimum wage starting July 1, 2023.
- Large Employers (more than 500 employees worldwide, and all franchisees associated with a franchisor or a network of franchises with franchisees that employ more than 500 employees in aggregate) – $18.99/hour
- All Other Employers (15-500 employees worldwide or annual gross revenue over $2 million) – $16.99/hour
Washington D.C.
Beginning July 1, 2023, the minimum wage in the District of Columbia will increase based on the Consumer Price Index to $17/hour for all workers, regardless of the employer’s size.
The base minimum wage for tipped employees will change twice in two months. On May 1, 2023, the base minimum wage for tipped employees increased from $5.35/hour to $6.00/hour. On July 1, 2023, this base rate rises to $8/hour. However, if an employee’s hourly tip earnings (averaged weekly) added to the base minimum wage do not equal the District’s full minimum wage, the employer must pay the difference.
Here is one other state that has minimum wage changes before the end of the year:
Florida
On November 3, 2020, Florida voters approved Amendment 2, which gradually increases the state’s minimum wage to $15.00/hour by 2026. The next jump in minimum wage starts on September 30, 2023, when the rate goes to $12/hour.
For Tipped employees, the employer must pay a direct wage. The direct wage is calculated as equal to the minimum wage ($12.00/hour) minus the 2003 Fair Labor Standards Act (FLSA) allowable tip credit ($3.02) or a direct hourly wage of $8.98/hour as of September 30, 2022. In addition, tipped employees’ total wages must be no lower than the state minimum wage.
The rate will increase by $1/hour annually for all employees on September 30 until it reaches $15/hour.
What to do next
If your company is affected by minimum wage changes, notify your workforce management and payroll company as soon as possible. These laws affect payroll, and reporting, and forecasting. If you need help, please contact Time Equipment Company at sales@timeequipment.com or 800-997-8463.
*This information simplifies complex Acts as it is understood by Time Equipment Company. It is not to be taken as legal advice. The regulations for this program are changing. For further information contact your state or local Department of Labor.