Minimum wage and other minimum pay requirements regularly increase at different points throughout any given year. These changes are most often effective on or around January 1 and on or around July 1. This page contains resources to guide you in determining the appropriate minimum compensation for your employees.
Resources on Minimum Pay Information
- Mineral: State and Local Minimum Wage Updates Chart*
- Department of Labor: State Minimum Wage Laws
- Economic Policy Institute (EPI): Minimum Wage Tracker
- Littler Mendelson: As Temperatures Rise, So Do Minimum Wage, Tipped, and Exempt Employee Pay Rates Across the United States
Things to Remember
- Locality matters. Many cities, counties, and/or towns within a state have higher minimum pay requirements than the state itself. EPI’s Minimum Wage Tracker allows you to select the locality in which your employee(s) work under “Areas with different minimum wages” after selecting the applicable state.
- Exempt employees may be impacted. In some states, the minimum salary thresholds for exempt employees may increase. Other minimum salary requirements for exempt employees may also apply to your employee(s).
- Different requirements exist for different types of employees. In many states, tipped employees and employees working in certain industries have separate minimum wage requirements, which may also vary depending on which region they work within the state.
- Double-check your work. Consult with legal counsel to ensure you’re compliant with minimum pay requirements as they apply to your employees.
Justworks Resources
Minimum Pay Requirement Updates
All updates below are effective July 1, 2023, unless otherwise noted. The below updates do not include tipped minimum wage updates or updates specific to certain industries.
Remember, the updates below only pertain to jurisdictions where the rates are changing effective July 1. Other requirements already in effect at the state or local levels may also apply to your employees and they may be higher than the requirements below. For example, we’ve gone ahead and called out existing local requirements in California, Illinois, Maryland, and Minnesota that are not changing July 1 but are higher than state or federal requirements. This may be the case in other localities as well.
- The following rates at the state level apply to employers of all sizes. These rates went into effect on January 1, 2023.
- New minimum hourly wage: $15.50
- New minimum exempt weekly salary requirement: $1,240 ($64,480 per year)
Local updates
- Alameda - new minimum hourly wage: $16.52
- Berkeley - new minimum hourly wage: $18.07
- Emeryville - new minimum hourly wage: $18.67
- Fremont (all business sizes) - new minimum hourly wage: $16.80
- Los Angeles (city, all business sizes) - new minimum hourly wage: $16.78
- Los Angeles County (unincorporated areas, all business sizes) - new minimum hourly wage: $16.90
- Malibu (all business sizes) - new minimum hourly wage: $16.90
- Milpitas - new minimum hourly wage: $17.20
- Pasadena (all business sizes) - new minimum hourly wage: $16.93
- San Francisco - new minimum hourly wage: $18.07
- Santa Monica (all business sizes) - new minimum hourly wage: $16.90
- West Hollywood (all business sizes) - new minimum hourly wage: $19.08
- New minimum hourly wage: $17.00
- Minimum hourly wage: $13.00**
- Note: Minimum hourly wage at the state level, above, went into effect January 1, 2023.
Local updates
- Chicago (4-20 employees) - new minimum hourly wage: $15.00
- Chicago (21 or more employees) - new minimum hourly wage: $15.80
- Cook County - new minimum hourly wage: $13.70
- Minimum hourly wage (14 or fewer employees): $12.80
- Minimum hourly wage (15 or more employees): $13.25
- Note: Minimum hourly wages at the state level, above, went into effect January 1, 2023.
Local updates
- Montgomery County (10 or fewer employees) - new minimum hourly wage: $14.50
- Montgomery County (11-50 employees) - new minimum hourly wage: $15.00
- Montgomery County (51 or more employees) - new minimum hourly wage: $16.70
- Minimum hourly wage: $10.59
- Note: Minimum hourly wage at the state level, above, went into effect January 1, 2023.
Local updates
- Minneapolis (100 or fewer employees) - new minimum hourly wage: $14.50
- St. Paul (1-5 employees) - new minimum hourly wage: $11.503
- St. Paul (6-100 employees) - new minimum hourly wage: $13.00
- St. Paul (100 or more employees) - new minimum hourly wage: $15.00
Nevada††
- New minimum hourly wage: $11.25
- Nonurban counties - new hourly minimum wage: $13.20
- Standard - new hourly minimum wage: $14.20
- Portland metro area - new hourly minimum wage: $15.45
- Tukwila^ (15-500 employees) - new minimum hourly wage: $16.99
- Tukwila (501 or more employees) - new minimum hourly wage: $18.99
Notes
* Be sure you’re logged into your Justworks account with administrative permissions to access Mineral.
** Illinois allows a lower minimum wage ($12.50) for new employees over the age of 18, only for the first 90 days of employment.
†Minnesota has a lower minimum wage ($8.63/hour) for employers with less than $500,000 annual gross revenue. Certain localities in Minnesota define minimum wage based on the number of employees, so employers should consider annual gross revenues, number of employees, and locality (as well as any other applicable factors) in determining the applicable minimum wage.
††Nevada allows a lower minimum wage rate ($10.25) if qualifying health benefits are provided to the employee.
^Tukwila, Washington minimum hourly wage applies to employers that either (1) employ at least 15 employees worldwide, or (2) has annual gross revenue over $2 million.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.