In 2023, 27 states will have new minimum wage rates. The federal minimum wage remains unchanged at $7.25 and applies in 20 states. It was last raised on July 24, 2009.
Affordable housing managers responsible for determining the income of applicants and residents need to be aware of state and local minimum wage laws in order to ensure the most accurate possible projection of income.
States with Minimum Wage in Excess of Federal $7.25 per Hour (as of 1/1/23) – unless noted otherwise, the minimum wage for tipped employees is $2.13
- Alaska: $10.85 (AK does not have a different rate for tipped employees).
- Arizona: $13.85; $10.85 for tipped employees.
- Arkansas: $11.00; $2.63 for tipped employees.
- California: $15.50 – applies to all employers.
- Colorado: $13.65; $10.63 for tipped employees. Colorado cities have the ability to set higher minimums, but so far only Denver has done so. The minimum wage for Denver will be $17.29 on January 1, 2023. Tipped employees in Denver will have a minimum wage of $14.27.
- Connecticut: $15.00 (effective July 1, 2023).
- Delaware: $11.75. The minimum wage for tipped employees is $2.23.
- District of Columbia: $16.10. Tipped employees – $5.35.
- Florida: $11.00; $7.98 for tipped employees. Note: the minimum wage will increase to $12 per hour on September 30, 2023, reaching $15 by 2026.
- Hawaii: $12.00. Tipped employees – $10.10.
- Illinois: $13.00; $7.80 for tipped employees. The youth minimum wage for youth working less than 650 hours per year is $10.50.
- Maine: $13.80; $6.90 for tipped employees.
- Maryland: $12.80 for small employers (14 or fewer workers); $13.25 for all other employers; $3.63 for tipped employees.
- Massachusetts: $15.00; $6.75 for tipped employees.
- Michigan: $10.10; $3.84 for tipped employees.
- Minnesota: $10.59 – this is the rate for large employers (employers with $500,000 or more gross revenue). Small employers have a minimum wage of $8.63 per hour.
- Missouri: $12.00; $6.00 for tipped workers.
- Montana: $9.95, for both tipped and non-tipped employees.
- Nebraska: $10.50.
- Nevada: $11.25 for employees who are not offered health insurance. $10.25 for employees with health insurance (effective July 1, 2023).
- New Jersey: $14.13 (large employers – six or more employees); $12.93 (small employers); $5.27 for tipped employees.
- New Mexico: $12.00; $3.00 for tipped employees.
- New York: $14.20 statewide; $11 for hospitality, non-fast food, resort service; $8.80 for hospitality, non-fast food, general service; $14.50 for hospitality- fast food; ($15.00 in New York City).
- Ohio: $10.10 (large employers with $323,000 or more in gross receipts); $7.25 (small employers); $5.05 for tipped employees.
- Oregon: $13.50 (Portland, $14.75 on July 1) – effective July 1, 2022, ($12.50 for nonurban counties). This will increase on July 1, 2023, based on inflation.
- Rhode Island: 13.00; tipped employees are $3.89.
- South Dakota: $10.80; $5.40 for tipped employees.
- Vermont: $13.18; $6.59 for tipped employees.
- Virginia: $12.00.
- Washington: $15.74.
- West Virginia: $8.75
To the best of my knowledge, this list is accurate as of the end of 2022. However, property operators should confirm the minimum wages in the states and localities in which the property is located. Keep in mind that a resident may work in a locality (or even a state) that differs from the property location. For this reason, managers should be aware of minimum wages in adjacent and nearby localities.
Certain occupations are exempt from federal minimum wage laws, but states have their own exemptions. Anytime an applicant or resident reports or has a verification of income that is less than the federal or state minimum wage, managers should follow up with employers to determine the reason. That reason should be documented in the file.