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.
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
|State||2022 Minimum wage||2023 Minimum wage (effective Jan. 1, 2023, unless noted)|
|Alabama||$7.25 (federal minimum wage; no state minimum)||no change|
|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|
|Connecticut||$14||$15 on June 1, 2023|
|Washington D.C.||$16.10||Increase 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|
|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|
|Louisiana||$7.25 (federal minimum wage; no state minimum)||no change|
|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|
|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 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|
|Oregon||$13.50 standard; $14.75 Portland Metro; $12.50 non-urban counties||Increase expected with annual indexing on July 1, 2023|
|Pennsylvania||$7.25 (federal minimum wage; no state minimum)||no change|
|South Carolina||$7.25 (federal minimum wage; no state minimum)||no change|
|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|
|West Virginia||$8.75||no 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:
- Connecticut (2023)
- Delaware (2025)
- Florida (2026)
- Illinois (2025)
- Maryland (2025)
- Massachusetts (2023)
- New Jersey (2024)
- Rhode Island (2025)
- 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.