It is time to ring in the new year with raises in minimum wage across the country. There are 24 states that have increased their rates for 2022. A majority of these states will see these changes take place effective January 1, 2022, however, the increase for New York will take place on December 31, 2021 while Connecticut, Florida, Nevada and Oregon will not see an increase until the middle of next year.
As an employer, it is important that you stay up to date on wage changes as you could have employees located in a state with a new rate taking effect. According to HR Daily Advisor, there are a significant number of changes occurring during the new year that you should be mindful of. It is recommended that you review the below list to ensure that you are remaining compliant and are raising wages accordingly.
State Minimum Wage Changes Effective December 31, 2021
New York state: $13.20 per hour. Annual indexing to continue increasing up to $15.00.
•Fast food employees (in fast food establishments): $15.00 per hour.
•New York City, Long Island, and Westchester counties: $15.00 per hour and annual indexing.
State Minimum Wage Changes Effective January 1, 2022
Arizona: $12.80 per hour. Adjusted annually on January 1.
California: $15.00 per hour with 26 employees or more; $14.00 per hour with fewer than 26 employees. Scheduled wage increases for 25 employees or fewer: $15.00 on 1/1/23 and then adjusted annually.
Colorado: $12.56 per hour. Adjusted annually on January 1.
Delaware: $10.50 per hour. Increasing to $11.75 on 1/1/23; $13.25 on 1/1/24; and $15.00 on 1/1/25.
Illinois: $12.00 per hour. Increasing to $13.00 on 1/1/23; $14.00 on 1/1/24; and $15.00 on 1/1/25.
Maine: $12.75 per hour. Adjusted annually on January 1.
Maryland: $12.50 for businesses with 15 or more employees and $12.20 for businesses with fewer than 15 employees.
•For businesses with 15 or more employees, the rate will increase to $13.25 on 1/1/23; $14.00 on 1/1/24; and $15.00 on 1/1/25.
•For businesses with fewer than 15 employees, the rate will increase to $12.80 on 1/1/23; $13.40 on 1/1/24; $14.00 on 1/1/25; $14.60 on 1/1/26; and $15.00 on 7/1/26.
Massachusetts: $14.25 per hour. Increasing to $15.00 on 1/1/23.
Minnesota: $10.33 per hour for large employers (annual gross revenue of $500,000 or more) and $8.42 per hour for small employers (annual gross revenue of less than $500,000). Adjusted annually on January 1.
Missouri: $11.15 per hour. Increasing to $12.00 on 1/1/23. Adjusted annually on January 1.
Montana: $9.20 per hour. Adjusted annually on January 1.
New Jersey: $13.00 per hour for employers with more than 5 employees; $11.90 per hour for seasonal employers and/or small employers with 5 or fewer workers; and $10.90 per hour for agricultural employers.
•For employers with more than 5 employees, the rate will increase to $14.00 on 1/1/23.
•For seasonal and small employers, the rate will increase to $12.70 on 1/1/23.
•For agricultural employers, the rate will increase to $11.70 on 1/1/23.
•Adjusted annually on January 1.
New Mexico: $11.50 per hour. Increasing to $12.00 on 1/1/23.
Ohio: $9.30 per hour for gross receipts of $342,000 or more; $7.25 per hour for gross receipts under $342,000. Adjusted annually on January 1.
Rhode Island: $12.25 per hour. Increasing to $13.00 on 1/1/23; $14.00 on 1/1/24; and $15.00 on 1/1/25.
South Dakota: $9.95 per hour. Adjusted annually on January 1.
Vermont: $12.55 per hour. Adjusted annually on January 1.
Virginia: $11.00 per hour. Increasing to $12.00 on 1/1/23.
Washington: $14.49 per hour. Adjusted annually on January 1.
State Minimum Wage Changes Going into Effect After January 1, 2022
Connecticut: $13.00 per hour, effective 8/1/21. Increasing to $14.00 on 7/1/22; $15.00 on 6/1/23; and then adjusted annually on January 1.
Florida: $10.00 per hour. Increasing to $11.00 on 9/30/22; $12.00 on 9/30/23; $13.00 on 9/30/24; $14.00 on 9/30/25; and $15.00 on 9/30/26.
Nevada: $10.50 per hour for employees without healthcare benefits; $9.50 per hour for employees with healthcare benefits. Effective on 7/1/22.
Oregon: An employer’s location affects the minimum wage rate:
•Within Portland’s urban growth boundary (metro area, including portions of Clackamas, Multnomah, and Washington counties): $14.75 per hour, effective on 7/1/22.
•Areas not in Portland’s urban growth boundary or one of the listed nonurban counties (urban counties, Benton, Clackamas, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Multnomah, Polk, Tillamook, Wasco, Washington, and Yamhill counties): $13.50 per hour, effective on 7/1/22.
•The nonurban counties (rural counties, Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties): $12.50per hour, effective on 7/1/22.
If you need assistance navigating these minimum wage changes for the new year, please contact me today at 310-534-5577 or [email protected]. I’d be happy to help point you in the right direction!
