Table of contents
  1. Minimum Wage by State 2022 with Changes for 2023
  2. What is Tip Credit and How Does it Work?
  3. Minimum Wage by State FAQs 
  4. Staying Up To Date on Minimum Wage Going Into 2023
  5. The Bottom Line on Minimum Wage

Since 2009, business owners and managers haven’t had to deal with changes to the federal minimum wage. However, many states have opted to increase the state minimum wage in 2023. 

According to a recent Pew Research Center study, two-thirds of Americans favor a $15 federal minimum wage, which would make the federal minimum wage higher than many current state laws.

Keeping up with the ever-changing wage and labor laws can be confusing. Ultimately, it’s your responsibility to keep up with the laws and to ensure your employees are fairly compensated. 

Use this guide to help you understand the minimum wage per state for 2022 and the changes coming in 2023.

Looking for Ways to Manage Wage Changes More Easily?

Minimum Wage by State 2022 with Changes for 2023

Federal 

2022 Basic Minimum Wage Combined (per hour): $7.25

For tipped employees:

Maximum Tip Credit: $2.13

Minimum Wage Rate: $5.12

2023 Basic Minimum Wage Combined (per hour): $7.25

Alabama

2022 Basic Minimum Wage Combined (per hour): $2.13 ($7.25)*

For tipped employees: 

Maximum Tip Credit: $0

Minimum Wage Rate: $2.13

2023 Basic Minimum Wage Combined (per hour): $2.13

Premium Pay After Designated Hours: Weekly – 40

* Alabama doesn’t have a state minimum wage. The federal minimum wage applies.

Alaska

2022 Basic Minimum Wage Combined (per hour): $10.34

For tipped employees: 

Maximum Tip Credit: $0

Minimum Wage Rate: –

2023 Basic Minimum Wage Combined (per hour): $10.34

Premium Pay After Designated Hours: Daily – 8, Weekly – 40

*Premium pay is relevant only for employers with over 4 employees

Arizona

2022 Basic Minimum Wage Combined (per hour): $12.80

For tipped employees:

Maximum Tip Credit: $3.00

Minimum Wage Rate: $9.80

2023 Basic Minimum Wage Combined (per hour): $12.80

Premium Pay After Designated Hours: Weekly – 40

Arkansas

2022 Basic Minimum Wage Combined (per hour): $11.00

For tipped employees:

Maximum Tip Credit: $2.63

Minimum Wage Rate: $8.37

2023 Basic Minimum Wage Combined (per hour): $11.00

Premium Pay After Designated Hours: Weekly – 40

California 

2022 Basic Minimum Wage Combined (per hour) for employers with 25 or fewer employees: $14.00

2022 Basic Minimum Wage Combined (per hour) for employers with 26+ employees: $15.00

For tipped employees: 

Maximum Tip Credit: $0

Minimum Wage Rate: $15.00

2023 Basic Minimum Wage Combined (per hour) for all employers: $15.00

Premium Pay After Designated Hours: Daily – 8 & 12, Weekly – 40

*Premium pay applies for time and a half over an 8-hour workday and double time over a 12-hour workday. If an employee works 7 days in a row, the first 8 hours are paid time and a half, and over 8 hours are paid double. 

Colorado 

2022 Basic Minimum Wage Combined (per hour): $12.56

For tipped employees: 

Maximum Tip Credit: $3.02

Minimum Wage Rate: $9.54

2023 Basic Minimum Wage Combined (per hour): $12.56

Premium Pay After Designated Hours: Daily – 12, Weekly – 40

Connecticut 

2022 Basic Minimum Wage Combined (per hour): $14.00

For tipped employees: 

Maximum Tip Credit: $6.62

Minimum Wage Rate: $6.38

2023 Basic Minimum Wage Combined (per hour): $15.00

Premium Pay After Designated Hours: Weekly – 40

*For hotels and restaurants, the 7th consecutive day of work requires time and a half pay rate. 

Delaware 

2022 Basic Minimum Wage Combined (per hour): $10.50

For tipped employees: 

Maximum Tip Credit: $8.27

Minimum Wage Rate: $2.23

2023 Basic Minimum Wage Combined (per hour): $11.75

Premium Pay After Designated Hours: Weekly – 40

*Delaware will reach a minimum wage rate of $15 per hour by 2025.

District of Columbia 

2022 Basic Minimum Wage Combined (per hour): $15.20

For tipped employees: 

Maximum Tip Credit: $10.15

Minimum Wage Rate: $5.05

2023 Basic Minimum Wage Combined (per hour): $15.20

Premium Pay After Designated Hours: Weekly – 40

Florida

2022 Basic Minimum Wage Combined (per hour): $10.00

For tipped employees: 

Maximum Tip Credit: $3.02

Minimum Wage Rate: $6.98

2023 Basic Minimum Wage Combined (per hour): $12.00

Premium Pay After Designated Hours: Weekly – 40

Georgia

2022 Basic Minimum Wage Combined (per hour): $5.15 ($7.25)*

For tipped employees: 

Maximum Tip Credit: $0

Minimum Wage Rate: $2.13

2023 Basic Minimum Wage Combined (per hour): $5.15 ($7.25)*

Premium Pay After Designated Hours: Weekly – 40

* Georgia’s state minimum wage is less than the federal minimum wage, so it must adhere to the federal minimum wage.

Hawaii

2022 Basic Minimum Wage Combined (per hour): $10.10

For tipped employees: 

Maximum Tip Credit: $0.75

Minimum Wage Rate: $9.35

2023 Basic Minimum Wage Combined (per hour): $10.10

Premium Pay After Designated Hours: Weekly – 40

Idaho

2022 Basic Minimum Wage Combined (per hour): $7.25

For tipped employees: 

Maximum Tip Credit: $3.90

Minimum Wage Rate: $3.35

2023 Basic Minimum Wage Combined (per hour): $7.25

Premium Pay After Designated Hours: Weekly – 40

Illinois 

2022 Basic Minimum Wage Combined (per hour): $12.00

For tipped employees: 

Maximum Tip Credit: $4.80

Minimum Wage Rate: $7.20

2023 Basic Minimum Wage Combined (per hour): $13.00

Premium Pay After Designated Hours: Weekly – 40

* By 2025, the minimum wage will go up to $15.00 in Illinois.

Indiana

2022 Basic Minimum Wage Combined (per hour): $7.25

For tipped employees: 

Maximum Tip Credit: $5.12

Minimum Wage Rate: $2.13

2023 Basic Minimum Wage Combined (per hour): $7.25

Premium Pay After Designated Hours: Weekly – 40

Iowa

2022 Basic Minimum Wage Combined (per hour): $7.25

For tipped employees: 

Maximum Tip Credit: $2.90

Minimum Wage Rate: $4.35

2023 Basic Minimum Wage Combined (per hour): $7.25

Premium Pay After Designated Hours: Weekly – 40

Kansas

2022 Basic Minimum Wage Combined (per hour): $7.25

For tipped employees: 

Maximum Tip Credit: $5.12

Minimum Wage Rate: $2.13

2023 Basic Minimum Wage Combined (per hour): $7.25

Premium Pay After Designated Hours: Weekly – 40

Kentucky

2022 Basic Minimum Wage Combined (per hour): $7.25

For tipped employees: 

Maximum Tip Credit: $5.12

Minimum Wage Rate: $2.13

2023 Basic Minimum Wage Combined (per hour): $7.25

Premium Pay After Designated Hours: Weekly – 40, 7th day

*7th day overtime law requires employers to pay a rate of time and a half on the 7th consecutive day of work

Louisiana

2022 Basic Minimum Wage Combined (per hour): $2.13 ($7.25)*

For tipped employees: 

Maximum Tip Credit: –

Minimum Wage Rate: $2.13

2023 Basic Minimum Wage Combined (per hour): $2.13 ($7.25)*

Premium Pay After Designated Hours: Weekly – 40

* Louisiana doesn’t have a state minimum wage. The federal minimum wage must be applied. 

Maine

2022 Basic Minimum Wage Combined (per hour): $12.75

For tipped employees: 

Maximum Tip Credit: $6.37

Minimum Wage Rate: $6.38

2023 Basic Minimum Wage Combined (per hour): $12.75

Premium Pay After Designated Hours: Weekly – 40

Maryland

2022 Basic Minimum Wage Combined (per hour): $12.50

For tipped employees: 

Maximum Tip Credit: $8.87

Minimum Wage Rate: $3.63

2023 Basic Minimum Wage Combined (per hour): $12.50

Premium Pay After Designated Hours: Weekly – 40

*Employees under 18 years old may be paid 85% of the minimum hourly wage. 

Massachusetts

2022 Basic Minimum Wage Combined (per hour): $14.25

For tipped employees: 

Maximum Tip Credit: $8.10

Minimum Wage Rate: $6.15

2023 Basic Minimum Wage Combined (per hour): $15.00

Premium Pay After Designated Hours: Weekly – 40

Michigan

2022 Basic Minimum Wage Combined (per hour): $9.87

For tipped employees: 

Maximum Tip Credit: $6.12

Minimum Wage Rate: $3.75

2023 Basic Minimum Wage Combined (per hour): $10.10

Premium Pay After Designated Hours: Weekly – 40

*Employees aged 16-17 can be paid 85% of the minimum wage.

Minnesota

2022 Basic Minimum Wage Combined (per hour) for enterprises with annual revenues of $500,000 or more: $10.33

2022 Basic Minimum Wage Combined (per hour) for enterprises with annual revenues of less than $500,000: $8.42

For tipped employees: 

Maximum Tip Credit: –

Minimum Wage Rate: $8.42

2023 Basic Minimum Wage Combined (per hour): Same as 2022 rates, adjusted for inflation 

Premium Pay After Designated Hours: Weekly – 48

*Employees under 18 may be paid $8.42 per hour regardless of company size.

Mississippi

2022 Basic Minimum Wage Combined (per hour): $2.13 ($7.25)*

For tipped employees: 

Maximum Tip Credit: –

Minimum Wage Rate: $2.13

2023 Basic Minimum Wage Combined (per hour): $2.13 ($7.25)*

Premium Pay After Designated Hours: Weekly – 40

*Mississippi has no state laws regarding minimum wage. Federal minimum rates apply. 

Missouri 

2022 Basic Minimum Wage Combined (per hour): $11.15

For tipped employees: 

Maximum Tip Credit: $5.57

Minimum Wage Rate: $5.58

2023 Basic Minimum Wage Combined (per hour): $12.00

Premium Pay After Designated Hours: Weekly – 40

*Premium pay for seasonal amusement or recreation businesses is required after 52 hours. 

Montana

2022 Basic Minimum Wage Combined (per hour) for businesses with gross annual sales of more than $110,000: $9.20

2022 Basic Minimum Wage Combined (per hour) for businesses with gross annual sales of less than $110,000: $4.00*

For tipped employees: 

Maximum Tip Credit:

Minimum Wage Rate (businesses with gross annual sales exceeding $110,000): $9.20

Minimum Wage Rate (businesses with gross annual sales under $110,000): $4.00

2023 Basic Minimum Wage Combined (per hour): $9.20, adjusted for inflation

Premium Pay After Designated Hours: Weekly – 40

*Fair Labor Standards Act does not apply to these businesses unless transporting goods between states

Nebraska

2022 Basic Minimum Wage Combined (per hour): $9.00

For tipped employees: 

Maximum Tip Credit: $6.87

Minimum Wage Rate: $2.13

2023 Basic Minimum Wage Combined (per hour): $9.00

Premium Pay After Designated Hours: Weekly – 40

Nevada

2022 Basic Minimum Wage Combined (per hour) for employers that provide health insurance: $9.50

2022 Basic Minimum Wage Combined (per hour) for employers that do not provide health insurance: $10.50

For tipped employees: 

Maximum Tip Credit: –

Minimum Wage Rate: $9.50

2023 Basic Minimum Wage Combined (per hour) for employers that provide employees with health insurance: $10.25 

2023 Basic Minimum Wage Combined (per hour) for employers that do not provide employees with health insurance: $11.25 

Premium Pay After Designated Hours: Weekly – 40

New Hampshire

2022 Basic Minimum Wage Combined (per hour): $7.25

For tipped employees: 

Maximum Tip Credit: $3.99

Minimum Wage Rate: $3.26

2023 Basic Minimum Wage Combined (per hour): $7.25

Premium Pay After Designated Hours: Weekly – 40

New Jersey

2022 Basic Minimum Wage Combined (per hour): $13.00

For tipped employees: 

Maximum Tip Credit: $7.87

Minimum Wage Rate: $5.13

2023 Basic Minimum Wage Combined (per hour) for businesses with over 6 employees: $14.00

Premium Pay After Designated Hours: Weekly – 40

*The minimum wage for seasonal workers and employers with less than 6 employees is $11.90. 

**New Jersey will increase the minimum wage to $15 by 2024 for all-sized businesses.

New Mexico 

2022 Basic Minimum Wage Combined (per hour): $11.50

For tipped employees: 

Maximum Tip Credit: $8.70

Minimum Wage Rate: $2.80

2023 Basic Minimum Wage Combined (per hour): $12.00

Premium Pay After Designated Hours: Weekly – 40

New York 

2022 Basic Minimum Wage Combined (per hour): $13.20 ($15.00)*

For tipped employees: 

Maximum Tip Credit (Food Service): $4.40

Minimum Wage Rate (Food Service): $8.80

Maximum Tip Credit (Service Employees): $2.20

Minimum Wage Rate (Service Employees): $11.00

2023 Basic Minimum Wage Combined (per hour): $13.20 ($15.00)*

Premium Pay After Designated Hours: Weekly – 40**

*$15.00 minimum wage for all employers in New York City, Long Island, Nassau, Suffolk, Westchester

*$15 minimum wage for all fast food workers, statewide

**Employees receive 1 additional hour of pay at minimum wage when working over 10 hours. Employers must provide 24 hours of rest each week for security guards, firefighters, engineers, and those that work in the hospitality industry. Click here for more information. 

North Carolina

2022 Basic Minimum Wage Combined (per hour): $7.25*

For tipped employees: 

Maximum Tip Credit: $5.12

Minimum Wage Rate: $2.13

2023 Basic Minimum Wage Combined (per hour): $7.25*

Premium Pay After Designated Hours: Weekly – 40**

*North Carolina doesn’t have a state minimum wage. Federal law applies.

**Premium pay is required after 45 hours a week for seasonal amusement or recreational establishments.

North Dakota

2022 Basic Minimum Wage Combined (per hour): $7.25

For tipped employees: 

Maximum Tip Credit: $2.39

Minimum Wage Rate: $4.86

2023 Basic Minimum Wage Combined (per hour): $7.25

Premium Pay After Designated Hours: Weekly – 40

*North Dakota doesn’t have a state minimum wage. Federal law applies.

Ohio

2022 Basic Minimum Wage Combined (per hour) for businesses with annual gross receipts of $342,000 or more: $9.30

2022 Basic Minimum Wage Combined (per hour) for businesses with annual gross receipts of less than $342,000: $7.25

For tipped employees: 

Maximum Tip Credit (businesses with annual gross receipts of $342,000 or more): $4.65

Minimum Wage Rate (businesses with annual gross receipts of $342,000 or more): $4.65

2023 Basic Minimum Wage Combined (per hour): The same rate as 2022, adjusted for inflation

Premium Pay After Designated Hours: Weekly – 40

Oklahoma

2022 Basic Minimum Wage Combined (per hour) for employers of 10 or more full-time employees at a single location and for employers with annual gross sales over $100,000 regardless of the number of full-time employees: $7.25

2022 Basic Minimum Wage Combined (per hour) for all other employers: $2.00

For tipped employees: 

Maximum Tip Credit: $5.12

Minimum Wage Rate: $2.13

2023 Basic Minimum Wage Combined (per hour): $7.25

Premium Pay After Designated Hours: Weekly – 40

Oregon

2022 Basic Minimum Wage Combined (per hour): $13.50*

For tipped employees: 

Maximum Tip Credit: –

Minimum Wage Rate: $12.75

2023 Basic Minimum Wage Combined (per hour): 2022 rates, adjusted for inflation**

Premium Pay After Designated Hours: Weekly – 40***

*Portland Metro’s minimum wage is $14.75, nonurban cities have a minimum wage of $12.50

**Prices are adjusted for inflation. Portland Metro could see wages of up to $16.00

***Premium pay is required after 10 hours a day in nonfarm canneries, driers, or packing plants and in mills, factories, or manufacturing establishments (excluding sawmills, planing mills, shingle mills, and logging camps)

Pennsylvania

2022 Basic Minimum Wage Combined (per hour): $7.25*

For tipped employees: 

Maximum Tip Credit: $4.42

Minimum Wage Rate: $2.83

2023 Basic Minimum Wage Combined (per hour): $7.25

Premium Pay After Designated Hours: Weekly – 40

*No state minimum wage. Follows federal law. 

Rhode Island

2022 Basic Minimum Wage Combined (per hour): $12.25

For tipped employees: 

Maximum Tip Credit: $8.36

Minimum Wage Rate: $3.89

2023 Basic Minimum Wage Combined (per hour): $13.00

Premium Pay After Designated Hours: Weekly – 40*

*Time and a half pay rate is required on Sundays and holidays

South Carolina

2022 Basic Minimum Wage Combined (per hour): $7.25*

For tipped employees: 

Maximum Tip Credit: –

Minimum Wage Rate: $2.13

2023 Basic Minimum Wage Combined (per hour): $7.25

Premium Pay After Designated Hours: Weekly – 40

*No state law. Federal law is applied. 

South Dakota

2022 Basic Minimum Wage Combined (per hour): $9.95

For tipped employees: 

Maximum Tip Credit: $4.98

Minimum Wage Rate: $4.98

2023 Basic Minimum Wage Combined (per hour): $9.95

Premium Pay After Designated Hours: Weekly – 40

Tennessee

2022 Basic Minimum Wage Combined (per hour): $7.25*

For tipped employees: 

Maximum Tip Credit: –

Minimum Wage Rate: $2.13

2023 Basic Minimum Wage Combined (per hour): $7.25*

Premium Pay After Designated Hours: Weekly – 40

*Tennessee does not have a state minimum wage. Federal law applies. 

Texas

2022 Basic Minimum Wage Combined (per hour): $7.25

For tipped employees: 

Maximum Tip Credit: $5.12

Minimum Wage Rate: $2.13

2023 Basic Minimum Wage Combined (per hour): $7.25

Premium Pay After Designated Hours: Weekly – 40

Utah

2022 Basic Minimum Wage Combined (per hour): $7.25

For tipped employees: 

Maximum Tip Credit: $5.12

Minimum Wage Rate: $2.13

2023 Basic Minimum Wage Combined (per hour): $7.25

Premium Pay After Designated Hours: Weekly – 40

*Federal law applies. Utah does not have a dollar minimum. 

Vermont 

2022 Basic Minimum Wage Combined (per hour): $12.55*

For tipped employees: 

Maximum Tip Credit: $6.27

Minimum Wage Rate: $6.28

2023 Basic Minimum Wage Combined (per hour): $12.55*, adjusted for inflation

Premium Pay After Designated Hours: Weekly – 40

*Applicable to employers of 2 or more employees

Virginia

2022 Basic Minimum Wage Combined (per hour): $11.00*

For tipped employees: 

Maximum Tip Credit: $

Minimum Wage Rate: $

2023 Basic Minimum Wage Combined (per hour): $12.00*

Premium Pay After Designated Hours: Weekly – 40

*Applicable to employers of 4 or more employees

Washington

2022 Basic Minimum Wage Combined (per hour): $14.49

For tipped employees: 

Maximum Tip Credit: –

Minimum Wage Rate: $2.13

2023 Basic Minimum Wage Combined (per hour): $14.49

Premium Pay After Designated Hours: Weekly – 40

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West Virginia

2022 Basic Minimum Wage Combined (per hour): $8.75*

For tipped employees: 

Maximum Tip Credit: $6.13

Minimum Wage Rate: $2.62

2023 Basic Minimum Wage Combined (per hour): $8.75*

Premium Pay After Designated Hours: Weekly – 40

*Applicable to employers of 6 or more employees

Wisconsin

2022 Basic Minimum Wage Combined (per hour): $7.25

For tipped employees: 

Maximum Tip Credit: $4.92

Minimum Wage Rate: $2.33

2023 Basic Minimum Wage Combined (per hour): $7.25

Premium Pay After Designated Hours: Weekly – 40

Wyoming

2022 Basic Minimum Wage Combined (per hour): $5.15 ($7.25)*

For tipped employees: 

Maximum Tip Credit: $5.12

Minimum Wage Rate: $2.13

2023 Basic Minimum Wage Combined (per hour): $5.15 ($7.25)*

Premium Pay After Designated Hours: Weekly – 40

*Wyoming’s state minimum is less than the federal minimum. Federal law applies. 

What is Tip Credit and How Does it Work?

Tip credits are a way to include tips in the calculation of minimum wage. The employer is allowed to credit a portion of an employee’s tips towards the obligation to pay minimum wage. 

Federally, the minimum wage is $7.25. However, the obligation for an employer to pay a tipped employee is $2.13 according to the Fair Labor Standards Act. The remainder of $5.12 can be accounted for through cash tips the employee receives. 

The employer is obligated to notify the employee their tips are being credited towards the minimum wage. Employees legally must retain all tips they receive.

Map of U.S. States with 2023 Minimum Wage Increases

Minimum Wage by State FAQs 

Which states are increasing their minimum wage in 2023?

  • California
  • Connecticut
  • Delaware
  • Florida
  • Illinois
  • Massachusetts
  • Michigan
  • Minnesota*
  • Missouri
  • Montana*
  • Nevada
  • New Jersey
  • New Mexico
  • Ohio*
  • Oregon*
  • Rhode Island
  • Vermont*
  • Virginia

* These states will increase the minimum wage relative to inflation only. 

Is the federal minimum wage set to increase in 2023?

No. Since 2009, the federal minimum wage rate has stayed at $7.25 and there are no concrete plans to increase it in 2023.

Which states follow the federal minimum wage?

12 states do not have state minimums and therefore follow federal law ($7.25/hour):

  • Alabama
  • Louisiana
  • Mississippi
  • New Hampshire
  • North Carolina 
  • North Dakota
  • Pennsylvania
  • South Carolina
  • Tennessee
  • Texas
  • Utah 
  • Wisconsin

Georgia and Wyoming abide by the federal minimum wage because their state minimum wage is too low ($5.15/hour).  

Staying Up To Date on Minimum Wage Going Into 2023

When paying employees hourly, it’s important to track their hours worked, both, to stay compliant with laws, and to ensure employees are being paid according to hours worked and not only hours scheduled. Using a digital solution like Connecteam can help business owners do just that. 

Business owners of all industries use Connecteam for the time clock and scheduling features. Using the time clock, business owners are notified when their employees are clocking in and out and, most importantly, can track employee hours for payroll.

Connecteam’s scheduling features automatically spot errors and highlight them for managers so problems can be solved before publishing the schedule. These problems can range from double booking employees to mistaken overtime. 

The scheduling and time clock features allow you to stay on top of all payroll expenses and comply with labor laws. 

The Bottom Line on Minimum Wage

State laws are constantly changing, and it’s vital to stay compliant with government regulations. This guide is relevant for 2022-2023. Always research your state and county minimum wage laws before setting your employee pay rates.

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