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2022 U.S. Minimum Wage Rates: State by State Updates

January 10, 2022 - minute read

Updated Aug. 5, 2022

As straightforward as minimum wage may seem, the process of maintaining compliant rate changes can actually be quite complex. 

For federal and state governments, the minimum wage for employees in private and public sectors is determined by the Fair Labor Standards Act (FLSA), which requires nonexempt employees to be paid the minimum wage or higher. In 2022, that minimum wage will remain at $7.25 per hour, a rate that has not changed since July 2009. Still, many states, cities and even counties have set their own minimum wage.

It is important to note that if any of your employees fall into a category where their state rate(s) conflict with the established federal rate, you are required to pay them the higher of the two wages. Furthermore, if you're still depending on manual or internal payroll processing systems to keep these requirements straight, it could be a huge risk to your bottom line and compliance

Switching to an automated payroll solution is an efficient way to effortlessly track all evolving rates and payroll details within your organization. Either way, it is beneficial to review each of the 2022 minimum wage requirements in your state to ensure your systems are prepared for the months ahead.

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2022 Minimum Wage for Federal Contract Workers

As of Jan. 30, 2022, workers connected to or working under federal contracts must  be paid a minimum wage of $15 per hour. Beginning Jan. 1, 2023, federal contract workers that receive tips will receive at least 85% of the full minimum wage as their cash wage. Beginning Jan. 1, 2024, these federal contract workers will receive 100% of the full minimum wage.

Federal Minimum Wage Exemptions

Employees who are not protected under the Fair Labor Standards Act, such as restaurant servers who earn tips, can be paid lower than the federal minimum wage of $7.25.

Minimum Wage Rates by State: 2022

Thirty states, as well as Washington, D.C., Guam, Puerto Rico and the U.S. Virgin Islands have a minimum wage higher than the federal minimum wage. There are seven states that do not have a minimum wage or have one below the federal minimum (noted with an asterisk below). Below are each state’s minimum wage rates for 2022: 

  • Alabama: $7.25*
  • Alaska: $10.34
  • Arizona: $12.80
  • Arkansas: $11.80
  • California: $14 ($15 for employers with 25 or fewer employees)
  • Colorado: $12.56
  • Connecticut: $14
  • Delaware: $10.50
  • District of Columbia: $15.20 
  • Florida: $11 (effective 9/30/2022)
  • Georgia: $7.25*
  • Guam: $8.75 
  • Hawaii: $10.10
  • Idaho: $7.25
  • Illinois: $12
  • Iowa: $7.25
  • Kansas: $7.25
  • Kentucky: $7.25
  • Louisiana: $7.25*
  • Maine: $12.75
  • Maryland: $12.50 ($12.20 for employers with 15+ employees)
  • Massachusetts: $14.25
  • Michigan: $9.87
  • Minnesota: $10.33 ($8.42 for small businesses with annual gross revenue of less than $500,000)
  • Mississippi: $7.25*
  • Missouri: $11.15
  • Montana: $9.20
  • Nebraska: $9
  • Nevada: $10.50 ($9.50 if health benefits are included)
  • New Hampshire: $7.25
  • New Jersey: $13
  • New Mexico: $11.50
  • New York: $13.20
  • North Carolina: $7.25
  • North Dakota: $7.25
  • Ohio: $9.30
  • Oklahoma: $7.25
  • Oregon: $13.50
  • Pennsylvania: $7.25
  • Puerto Rico: $8.50
  • Rhode Island: $12.25
  • South Carolina: $7.25*
  • South Dakota: $9.95
  • Tennessee: $7.25*
  • Texas: $7.25
  • Utah: $7.25
  • Vermont: $12.55
  • Virginia: $11
  • Virgin Islands: $10.50
  • Washington: $14.49
  • West Virginia: $8.75
  • Wisconsin: $7.25
  • Wyoming: $7.25*

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What States Are Increasing Minimum Wage in 2023?

These are the 17 states scheduled to raise their minimum wage in 2023:

  • Arizona: $13.50 effective Jan. 1, 2023
  • California: $15.50 effective Jan. 1, 2023
  • Connecticut: $15 effective June 1, 2023
  • Delaware: $11.75 effective Jan. 1, 2023
  • Florida: $12 effective Sept. 30, 2023
  • Illinois: $13 effective Jan. 1, 2023
  • Maine: $15 effective Jan. 1, 2023
  • Maryland: $13.25 effective January 2023
  • Massachusetts: $15 effective Jan. 1, 2023
  • Michigan: $10.10 effective Jan. 1, 2023
  • Missouri: $12 effective Jan. 1, 2023
  • Nevada: $10.25 with health benefits/$11.25 without health benefits effective July 1, 2023
  • New Jersey: $14 effective Jan. 1, 2023
  • New Mexico: $12 effective January 2023
  • Oregon: Will be adjusted with inflation in 2023
  • Rhode Island: $13 effective Jan. 1, 2023
  • Virginia: $12 effective Jan. 1, 2023

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Cities and Counties With a Higher Minimum Wage: 2022

Some cities and counties also have minimum wage rates higher than their state’s minimum wage. The 49 cities/counties that have a higher minimum wage than their state include:

  • Alameda, California
  • Belmont, California
  • Berkeley, California
  • Birmingham, Alabama
  • Chicago, Illinois
  • Cook County, Illinois
  • Cupertino, California
  • Denver, Colorado
  • East Palo Alto, California
  • El Cerrito, California
  • Emeryville, California
  • Flagstaff, Arizona
  • Fremont, California
  • Half Moon Bay, California
  • Los Altos, California
  • Los Angeles County, California
  • Los Angeles, California
  • Malibu, California
  • Milpitas, California
  • Minneapolis, Minnesota
  • Montgomery County, Maryland
  • Mountain View, California
  • Nassau, Suffolk and Westchester counties, New York
  • New York
  • Novato, California
  • Oakland, California
  • Palo Alto, California
  • Pasadena, California
  • Petaluma, California
  • Portland Urban Growth Boundary, Oregon
  • Portland, Maine
  • Redwood City, California
  • Richmond, California
  • Rockland, Maine
  • Saint Paul, Minnesota
  • San Carlos, California
  • San Francisco, California
  • San Jose, California
  • San Mateo, California
  • Santa Clara, California
  • Santa Fe City, New Mexico
  • Santa Fe County, New Mexico
  • Santa Monica, California
  • Santa Rosa, California
  • SeaTac, Washington
  • Seattle, Washington
  • Sonoma, California
  • St. Paul, Minnesota
  • Sunnyvale, California

Staying Compliant Is Easier With EPAY

Maintaining compliance with federal minimum wage laws can be confusing as minimum wage varies between states as well as among cities, counties and types of workers. Using a customizable workforce management (WFM) solution can streamline your payroll and tax processes with ease. This can make handling unlimited pay rates, time collection rules and shift differentials a much easier process. Being able to update minimum wage rates by worksite and location can also be extremely beneficial for employees and employers alike.

Learn more or contact us today.

Filed Under: Compliance Payroll & Tax California Human Resources