MINIMUM WAGE UPDATES December 2022

Alaska

Minimum wage will increase to $10.85 per hour. The minimum salary threshold for exempt employees will increase to $868 per week (which equals $45,136 per year).

Arizona

Statewide

Arizona’s state minimum wage will be $13.85 per hour. The minimum base wage for tipped employees will be $10.85 per hour.

Flagstaff

Flagstaff’s minimum wage will be $16.80 per hour. The minimum base wage for tipped employees will increase to $14.80 per hour.

Tucson

Tucson’s minimum wage will be $13.85 per hour, and the minimum base wage for tipped employees will be $10.85 per hour (the same as the state). To qualify for the tip credit in Tucson, an employee must earn more than $30 per week in tips.

California

Statewide Minimum Wage

California’s minimum wage for all employers regardless of size will increase to $15.50 per hour. This is a change from the increase that was previously scheduled because of a provision in the law that is triggered when inflation is above 7%.

Exempt Employee Minimum Salaries and Wages

The minimum salary threshold for exempt employees will increase to $1,240 per week ($64,480 per year) for employers regardless of their employee count.

The minimum hourly rate for exempt computer software employees will increase to $53.80 per hour (or an annual salary of $112,06

Computer software employee’s minimum hourly rate of pay exemption increases to $53.80 (up from $50), the minimum monthly salary exemption increases to $9,338.78 (up from $8,679.16), and the minimum annual salary exemption increases to $112,065.20 (up from $104,149.81), reflecting the 7.6 percent increase in the California Consumer Price Index for Urban Wage Earners and Clerical Workers.5.20).

The minimum rate for exempt licensed physicians and surgeons paid on an hourly basis will increase to $97.99 per hour.

Local Minimum Wages

The hourly minimum wage will also increase in the following cities:

Belmont: $16.75	Palo Alto: $17.25
Burlingame: $16.47	Petaluma: $17.06
Cupertino: $17.20	Redwood City: $17.00
Daly City: $16.07	Richmond (with benefits): $15.50 (state rate)
East Palo Alto: $16.50	Richmond (without benefits): $16.17
El Cerrito: $17.35	San Carlos: $16.32
Foster City: $16.50	San Diego: $16.30
Half Moon Bay: $16.45	San José: $17.00
Hayward (25 or fewer employees): $15.50 (state rate)	San Mateo City: $16.75
Hayward (26 or more employees): $16.34	Santa Clara: $17.20
Los Altos: $17.20	Santa Rosa: $17.06
Menlo Park: $16.20	Sonoma City (25 or fewer employees): $16.00
Mountain View: $18.15	Sonoma City (26 or more employees): $17.00
Novato (25 or fewer employees): $15.53	South San Francisco: $16.70
Novato (26–99 employees): $16.07	Sunnyvale: $17.95
Novato (100 or more employees): $16.32	West Hollywood (hotels): $18.35 (no change)
Oakland: $15.97	West Hollywood (49 or fewer employees): $17.00
Oakland (hotels with health benefits): $17.37	West Hollywood (50 or more employees): $17.50
Oakland (hotels without health benefits): $23.15

 

Colorado

Statewide

Colorado’s minimum wage will increase to $13.65 per hour. The minimum base wage for tipped employees will increase to $10.63 per hour.

The minimum salary for exempt executive, administrative, or professional employees will increase to $961.54 per week. (Interestingly, Colorado allows employers to round to the nearest dollar for the annual amount, which is $50,000 per year.) The minimum annual salary to use the “highly compensated employee” exemption will increase to $112,500. The minimum rate for exempt computer employees who are paid on an hourly basis will be $31.41 per hour.

Denver

Denver’s minimum wage will increase to $17.29. The minimum base wage for tipped employees will increase to $14.27 per hour.

Delaware

Minimum wage will increase to $11.75 per hour. The minimum base wage for tipped employees remains the same, which is $2.23 per hour.

 

Illinois

The minimum wage will increase to $13 per hour, and the minimum base wage for tipped employees will increase to $7.80 per hour. Illinois’s minimum wage law applies to employers with four or more employees (regardless of location).

Maine

Statewide

The statewide minimum wage will increase to $13.80 per hour. The minimum salary threshold for salaried exempt executive, administrative, and professional employees will increase to $796.17 per week (which equals $41,400.84 per year).

The minimum base wage for tipped employees will increase to $6.90 per hour. For an employer to take a tip credit in Maine, an employee must make more than $175 per month in tips.

Portland

Portland’s minimum wage will increase to $14 per hour. The minimum base wage for tipped employees will be $7 per hour.

Rockland

Rockland’s minimum wage for employers that have 26 or more employees will increase to $14 per hour. The minimum base wage for tipped employees will be $7 per hour. Smaller employers may pay the state minimum wage.

Maryland

Statewide Minimum Wage

The state minimum wage will increase to $13.25 per hour for employers with 15 or more employees, and $12.80 per hour for employers with 14 or fewer employees. The minimum base wage for tipped employees, regardless of employer size, remains $3.63 per hour.

Local Minimum Wages

Howard County’s hourly minimum wage will increase as follows:

• Employers with 14 or fewer employees: $13.25
• 501(c)(3) tax-exempt nonprofits: $13.25
• Employers that provide “home health services” or “home or community-based services” (as defined by federal law) and receive at least 75% of gross revenues through Medicaid: $13.25
• Food service facilities (as defined by state law): $13.25
• Employers with 15 or more employees: $15.00

Montgomery County also has its own minimum wage rates, but they aren’t scheduled to increase again until July 2023.

Massachusetts

Minimum Wage

Massachusetts’s minimum wage will increase to $15 per hour. The minimum base wage for tipped employees will increase to $6.75 per hour.

Premium Pay Fully Phased Out

The mandatory premium pay rate for hours worked on Sundays and certain holidays, which only applied to retailers and was down to 1.1 times an employee’s regular rate of pay in 2022, will be eliminated. All employers, of course, will still need to pay nonexempt employees 1.5 times their regular rate for all overtime hours (i.e., hours over 40 hours in a workweek).

Michigan

Minimum wage will increase to $10.10 per hour. The minimum base wage for tipped employees will be $3.84 per hour. Michigan’s minimum wage applies to employers with two or more employees.

These rates could increase in February 2023 depending on the outcome of ongoing litigation. We’ll send an update if that happens.

Minnesota

Statewide

The state minimum wage for employers with annual gross revenue of $500,000 or more will increase to $10.59 per hour. For employers with less than $500,000 in annual gross revenue, the minimum wage will be $8.63 per hour.

Minneapolis

The minimum wage in Minneapolis for employers with 101 or more employees will increase to $15.19 per hour. (The minimum wage of $13.50 for employers with 100 or fewer employees remains in place until July 1, 2023.)

St. Paul

The minimum wage in St. Paul for employers with 10,001 or more employees will increase to $15.19 per hour. (The minimum wage rates for employers of other sizes remains in place until July 1, 2023.)

Montana

Minimum wage will increase to $9.95 per hour. Employers with annual gross sales of $110,000 or less may pay the federal minimum wage.

 

Nebraska

By 2026, the Nebraska minimum wage will increase to $15 per hour and will be annually adjusted by the cost of living. Specifically, the minimum wage will increase from $9 per hour to:

• $10.50 per hour on January 1, 2023;
• $12 per hour on January 1, 2024;
• $13.50 per hour on January 1, 2025; and
• $15 per hour on January 1, 2026.

These changes are a result of Nebraska voters approving a minimum wage increase initiative in the elections on November 8, 2022; however, these results are not yet official.

New Jersey

Minimum wage for most employers will increase to $14.13 per hour. For seasonal and small employers (those with five or fewer employees), the minimum wage will increase to $12.93 per hour. Agricultural employers must pay at least $12.01 per hour. Employees who provide direct care at a long-term care facility will be entitled to $17.13 per hour.

The minimum base wage for tipped employees will increase to $5.26 per hour. Note that if you’re a small or seasonal employer, you can only take a tip credit if the base wage and tips bring the employee to $14.13 per hour.

 

New Mexico

Statewide

The state minimum wage will increase to $12 per hour. The minimum base wage for tipped employees will increase to $3 per hour.

Albuquerque

The minimum wage in Albuquerque will increase to $12 per hour (to match the state’s rate), and the minimum base wage for tipped employees will increase to $7.20.

Bernalillo County

Bernalillo County hasn’t announced its minimum wage yet, but last year it was lower than the state rate, so employers had to pay the state minimum wage. We called the County to see if they had an increase planned and they said it hasn’t been decided yet, but they expect it to match the state rate. We’ll send an update if the rate changes and is greater than the state rate.

Las Cruces

The minimum wage in Las Cruces will increase to $12 per hour (to match the state’s rate), and the minimum base wage for tipped employees will increase to $4.78. To qualify for the tip credit in Las Cruces, an employee must earn more than $30 per week in tips.

Santa Fe County and City

Santa Fe County and City minimum wages remain unchanged at $12.95 per hour but may see rate increases later in 2023. If that happens, we’ll send an update.

Ohio

Minimum wage will increase to $10.10 per hour for employers that gross $372,000 or more per year. The minimum base wage for tipped employees will increase to $5.05 per hour.

Employers that gross less than $372,000 can pay the federal minimum wage.

Rhode Island

Rhode Island’s minimum wage will increase to $13 per hour. The minimum base wage for tipped employees remains the same at $3.89 per hour.

South Dakota

Minimum wage will increase to $10.80 per hour. The minimum base wage for tipped employees will increase to $5.40 per hour.

 

Vermont

Minimum wage will increase to $13.18 per hour. The minimum base wage for tipped employees will increase to $6.59 per hour.

Vermont’s minimum wage applies to employers that have two or more employees. Employers with one employee can pay the federal minimum wage.

Virginia

The state’s minimum wage will increase to $12 per hour. The minimum base wage for tipped employees remains at $2.13 per hour.

Washington

Statewide

Washington’s state minimum wage will be $15.74 per hour.

Seattle

Seattle’s minimum wage will be:

• $18.69 per hour for large employers (501 or more employees)
• $18.69 per hour for small employers (500 or fewer employees) if they don’t pay at least $2.19 per hour toward the employee’s medical benefits or the employee doesn’t earn at least $2.19 per hour in tips
• $16.50 for small employers (500 or fewer employees) if they do pay at least $2.19 per hour toward the employee’s medical benefits or the employee earns at least $2.19 per hour in tips

To determine your employee count, include all employees regardless of location. For more information on Seattle’s minimum wage, including additional requirements related to the medical benefit contribution, you can check out this chart.

SeaTac Hospitality and Transportation Industry

The minimum wage for hospitality and transportation industry workers in SeaTac will be $19.06 per hour. The state minimum wage applies to those in other industries.

Minimum Exempt Employee Salary

The minimum salary for properly classified exempt executive, administrative, professional, and computer employees in Washington will increase to:

• $1,101.80 per week ($57,293.60 per year) for employers with 1–50 employees
• $1,259.20 per week ($65,478.40 a year) for employers with 51 or more employees

The minimum rate for exempt computer professionals paid on an hourly basis will be $55.09 per hour.

As a reminder, unlike under federal law, commissions and bonuses cannot be counted toward the minimum salary for exempt employees.

Agricultural Employee Overtime Exemption Phasing Out

Beginning January 1, 2023, agricultural employees in Washington will be owed 1.5 times their regular rate of pay for hours worked over 48 in a workweek.