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Time Is Money: A Quick Wage-Hour Tip on … New State and Local Minimum Wage Rates Go Into Effect On January 1, 2023
Tuesday, December 20, 2022

We seem to say this every year — December always seems to go by far too fast.  And with holidays and vacations, not to mention many employees still working remotely, it’s not unusual for matters to be put off until the new year — or for a project or two to fall through the cracks.

Often, there are no real consequences if a project gets pushed off into the new year.  But that’s not the case with new state or local wage-hour laws.

As reflected in the charts below, minimum wages will increase in dozens of states and localities when the calendar flips on January 1, 2023.  That means that employees need to be paid at those new rates effective January 1, 2023, irrespective of how busy things were this month.

Employers would be wise to confirm that their payroll and human resources departments are prepared to make necessary changes to comply with the new state and local requirements.

Underpaying employees just because adjustments fell through the cracks during all of the end-of-year activities is likely to get very little sympathy from employees — and just as little sympathy from the courts and from the agencies that address wage-hour compliance.

New State Minimum Wages that Go into Effect on January 1, 2023


2023 Rate










($10.63 for tipped employees)




($6.38 for tipped workers $8.23 for bartenders)




($2.23 for tipped employees)








($3.63 for tipped employees $12.80 for employers with 14 or fewer employees)




($6.75 for tipped employees)




for employers with more than $500,000 in gross revenue/$8.63 for smaller employers




($6 for tipped employees)




($4 for businesses with gross annual sales of $110,000 or less that are not governed by the FLSA’s minimum wage)

New Jersey



($12.93 for seasonal and small employers; $12.10 for employees who work on a farm for an hourly or piece rate; $17.13 for long-term care facility direct care staff; $5.26 for tipped employees)

New Mexico



($3 for tipped employees)

New York



($15.00 for fast food workers)




($5.05 for tipped employees)

Rhode Island



($3.89 for tipped employees)

South Dakota



($5.40 for tipped employees)







Please note that some states have exceptions for certain employers or employees, and that many localities (such as New York City) have higher minimum wages, including those identified below where the rates will be increasing.

New Local Minimum Wages that Go into Effect on January 1, 2023


January 1, 2023 Rate

Flagstaff, Arizona


Belmont, California


Burlingame, California


Cupertino, California


Daly City, California


East Palo Alto, California


El Cerrito, California


Foster City, California


Half Moon Bay, California


Hayward, California



($15.50 for employers with 25 or fewer employees)

Los Altos, California


Menlo Park, California


Mountain View, California


Oakland, California


Palo Alto, California


Petaluma, California


Redwood City, California


San Carlos, California


San Diego, California


San Jose, California


San Mateo, California


Santa Clara, California


Santa Rosa, California


Sonoma, California



($16.00 for employers with 25 or fewer employees)

South San Francisco, California


Sunnyvale, California


West Hollywood, California



($17.00 for employers with 49 or fewer employees)

Denver, Colorado


Rockland, Maine


Howard County, Maryland



($13.25 for employers with 14 or fewer employees)

Minneapolis, Minneapolis

$15.19 (for employers with 101 or more employees)

SeaTac, Washington

$19.06 (for hospitality and transportation employees)

Seattle, Washington



($16.50 for some employers with 500 or fewer employees)

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