Did you know there’s a state minimum wage increase coming next year? Do you live in one of those 27 states with a scheduled bump? If so, have you adjusted your processes to accommodate it? Here’s a quick breakdown of which states are raising their wages. Click here for a PDF version.

Fingercheck’s map offers an at-a-glance view of wage changes for 2023.

Keeping track of changes to the minimum wage, especially when you have locations in different states, is challenging. Federal wage changes, which are not in the 2023 forecast, are covered in the media, but states don’t get that same national play. The federal minimum wage remains at $7.25 per hour, unchanged since 2009.

But don’t worry! We can help. Fingercheck’s software streamlines your daily operations so you can focus on growing your business. Our all-in-one HR solution was designed for small businesses by a small business. We understand how a simple payroll solution makes life easier for you and your employees. You can click here to schedule a chat.

Automated updates save you time

If you live in one of the states with a planned increase (see our handy chart below), you should probably make that change now. However, if you already use Payroll by Fingercheck, you’re in luck. We have an option under Tax Work Locations that allows you to “enable minimum wage.” This adds the correct data based on the location, making the process seamless and efficient. 

Another benefit of using our payroll software is the option to provide your employees with earned wage access. Our Pay On-Demand, available with Fingercheck Small Business Starter, 360 and 360 Plus plans, gives your employees control over their own paychecks, letting them access wages they already have earned. And that access might mean all the difference for your team members.  

State minimum wage comparisons, 2022 vs. 2023

State2022 Minimum wage2023 Minimum wage (effective Jan. 1, 2023, unless noted)
Alabama $7.25 (federal minimum wage; no state minimum)no change
Alaska$10.34$10.85
Arizona $12.80$13.85
Arkansas $11 (applicable to employers of 4 or more)no change
California $14; $15 for businesses with 26+ employees$15.50 minimum for all employers
Colorado $12.56$13.65
Connecticut $14$15 on June 1, 2023
Delaware $10.50$11.75
Washington D.C. $16.10Increase expected with annual indexing on July 1, 2023
Florida $10 $12 on Sept. 30, 2023
Georgia $5.15 (Employers that are subject to the Fair Labor Standards Act must pay the $7.25 federal minimum wage.) no change
Hawaii $12 no change
Idaho $7.25no change
Illinois $12 (applicable to employers of 4 or more employees, excluding family members)$13
Indiana $7.25 (applicable to employers of 2 or more employees)no change
Iowa $7.25no change
Kansas $7.25no change
Kentucky $7.25no change
Louisiana$7.25 (federal minimum wage; no state minimum)no change
Maine $12.75$13.80
Maryland$12.50$13.25
Massachusetts$14.25$15
Michigan$9.87$10.10
Minnesota $10.33 for large employers (annual revenues of $500,000 or more); $8.42 for small employers$10.59 for large employers; $8.63 for small employers
Mississippi $7.25 (federal minimum wage; no state minimum) no change
Missouri $11.15$12
Montana $9.20$9.95
Nebraska$9$10.50
Nevada $10.50; $9.50 for companies that provide employee health insurance$11.25; $10.25 for companies that provide employee health insurance; on July 1, 2023
New Hampshire$7.25 (federal minimum wage; no state minimum)no change
New Jersey$13$14.13; $12.93 for seasonal and small businesses with fewer than 6 employees
New Mexico$11.50$12.00
New York$13.20 for N.Y. State except $15 in NYC, Long Island and Westchester$14.20 for N.Y. State except $15 in NYC, Long Island and Westchester); on Dec. 31, 2022
North Carolina$7.25 (federal minimum wage; no state minimum)no change
North Dakota$7.25 (federal minimum wage; no state minimum)no change
Ohio $9.30$10.10
Oklahoma $7.25no change
Oregon $13.50 standard; $14.75 Portland Metro; $12.50 non-urban countiesIncrease expected with annual indexing on July 1, 2023
Pennsylvania$7.25 (federal minimum wage; no state minimum)no change
Rhode Island $12.25$13
South Carolina$7.25 (federal minimum wage; no state minimum)no change
South Dakota$9.95$10.80
Tennessee$7.25 (federal minimum wage; no state minimum)no change
Texas$7.25 (federal minimum wage; no state minimum)no change
Utah$7.25 (federal minimum wage; no state minimum)no change
Vermont $12.55$13.18
Virginia $11$12
Washington $14.49$15.74
West Virginia $8.75no change
Wisconsin$7.25 (federal minimum wage; no state minimum)no change
Wyoming$5.15 (Employers that are subject to the Fair Labor Standards Act must pay the $7.25 federal minimum wage.)no change

Who pays the highest? 

Washington state will have the highest minimum wage at $15.74 per hour in 2023. Nine states have passed laws to reach a minimum wage of $15 per hour in 2023 and beyond:

  1. Connecticut (2023)
  2. Delaware (2025)
  3. Florida (2026)
  4. Illinois (2025)
  5. Maryland (2025)
  6. Massachusetts (2023)
  7. New Jersey (2024)
  8. Rhode Island (2025)
  9. Virginia (2026)

Washington, D.C. currently pays $16.10 per hour and that rate will likely increase over the summer.

By comparison, Georgia and Wyoming pay the lowest state minimum wage at $5.15 per hour for employers exempt from the Fair Labor Standards Act. Most companies are required to pay the federal minimum wage of $7.25 per hour.

Fingercheck helps you

Our Payroll software is designed to help make your life easier. We offer you unlimited payroll processing with a flat monthly fee. And you have access to your payroll from anywhere at any time. If you’d like to learn more or upgrade your plan, you can contact us today at 1-800-610-9501 or schedule a call

Sources:
https://www.dol.gov/agencies/whd/minimum-wage/state,

https://www.dol.gov/agencies/whd/mw-consolidated

https://www.dol.gov/agencies/whd/minimum-wage/state

https://abc7news.com/minimum-wage-2023-states-raising-california-nebraska/12562408/

https://www.thehortongroup.com/resources/2023-minimum-wage-rates-by-state/

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