Author: Britanny Holand
Minimum wage workers in more than half of the U.S. States are set to earn higher this year, 2023.
While that sounds exciting to look forward to, that is actually the significant response to inflation that causes struggles for workers. Nonetheless, it will be interesting to know how much the raise is in the minimum wage since there is quite a difference in terms of federal and state minimum wage.
In most U.S. States and Washington, D.C., workers enjoy higher minimum-wage rates than federal law. Meanwhile, the other five states—Tennessee, South Carolina, Louisiana, Alabama, and Mississippi—don’t have a specific minimum wage.
There are still states—Wyoming and Georgia—where workers earn a lower minimum-wage rate compared to the federal standard. In those states, the federal minimum wage applied is $7.25 per hour—the same rate since 2009.
From January 1, 2023, workers in Washington, D.C., can enjoy the country’s highest minimum wage, $16.10 per hour. Washington state comes close behind with an increase in the minimum wage, totaling $15.74. This is followed by California at $15.50 and Massachusetts at $15.00 per hour. Ultimately, some state governments apply their own unique laws regarding the minimum wage, and some are determined by employers.
The Minimum Wage Laws of U.S. States for 2023
To avoid any confusion, here is a clear breakdown of the minimum wage that workers can expect this 2023:
- Alabama: There is no state minimum wage law applied
- Alaska: $10.34
- Arizona: $12.80
- Arkansas: $11.00 (the increase applies to employers of 4 or more employees)
- California: $15.50 (the increase is mandatory regardless of the company size)
- Colorado: $12.56
- Connecticut: $15.00 (will take effect by June 1, 2023, since the minimum wage was $14.00 in 2022)
- Delaware: $9.25
- District of Columbia: $16.10
- Florida: $12.00 (will take effect by September 30, 2023, since the minimum wage was $11.00 in 2022)
- Georgia: $5.15 (the increase applies to employers of 6 or more employees)
- Hawaii: $10.10
- Idaho: $7.25
- Illinois: $13.00
- Indiana: $7.25 (the increase applies to employers of 2 or more employees)
- Iowa: $7.25
- Kansas: $7.25
- Kentucky: $7.25
- Louisiana: There is no state minimum wage law applied
- Massachusetts: $15.00
- Maine: $12.75
- Maryland: $12.50
- Michigan: $10.10 (the increase applies to employers of 2 or more employees)
- Minnesota: $10.33 for large employers and $8.42 for small employers
- Missouri: $12.00
- Mississippi: There is no state minimum wage law applied
- Montana: $9.20 minimum wage will remain, but businesses are mandated to offer annual raises
- North Carolina: $7.25
- North Dakota: $7.25
- Nebraska: $9.00 (the increase applies to employers of 4 or more employees)
- New Hampshire: $7.25
- New Jersey: $14.00
- New Mexico: $12.00
- Nevada: $11.25
- New York: The minimum wage remains. Yet, fast food businesses will have $15.00; other businesses, $14.20.
- Ohio: $9.30 and will have an annual pay increase
- Oklahoma: $7.25
- Oregon: An increase to $13.70 from $12.75.
- Pennsylvania: $7.25
- Rhode Island: $11.50
- South Carolina: There is no state minimum wage law applied
- South Dakota: $9.45
- Tennessee: There is no state minimum wage law applied
- Texas: $7.25
- Utah: $7.25
- Virginia: $12.00
- Vermont: $12.55 and will have an annual pay increase
- Washington: $15.74
- Wisconsin: $7.25
- West Virginia: $8.75
- Wyoming: $5.15
- Puerto Rico: $8.50
Minimum Wage Workers
According to statistics, more than half of the workers in the United States work for minimum-wage jobs. In short, they are the majority workforce.
In 2021, million workers aged 16 and above earned exactly the federal minimum wage of $7.25 per hour, while others earned below the set minimum wage. The state residence has been a crucial factor since the wages differ for each.
How Do Minimum Wage Increases Effect Employers?
The increase in the minimum wage affects both employees and employers. Some employers won’t significantly feel the increase’ impact since some are already paying above the standards. What’s interesting about this news is that a study showed that the increase in the minimum wage would eventually happen since there are issues about higher inflation and a labor shortage. Therefore, companies don’t have a choice but to comply as there is the pressure of fierce competition in the labor market.
Final Thoughts
Given the raise in the minimum wage in more than half of U.S. States, there might be pressure that will force small business owners to re-evaluate their businesses while low-income workers can gain better leverage. Hopefully, the increase will be the fitted solution to help the workers.