Dozens of State and Local Minimum Wages Are Rising Midyear (1)

Many states and localities in the United States are increasing their minimum wage rates on July 1. Affected employers should ensure they comply with relevant state and local wage laws.

State Minimum Wages

The District of Columbia, Nevada, Oregon, and Puerto Rico will increase their minimum wages on July 1. Additionally, the minimum wage in Florida will rise on Sept. 30, and the minimum wage in Connecticut already increased on June 1.

Connecticut: The hourly minimum wage rose to $15 from $14.

The District of Columbia: The hourly minimum wage for nontipped employees will increase to $17 from $16.10.

Additionally, under a 2022 ballot measure, the hourly minimum wage for tipped employees rose to $6 on May 1 and will increase to $8 on July 1.

Florida: The hourly minimum wage will rise to $12 from $11.

Nevada: Nevada currently has two minimum wage rates, one for employers that offer qualifying health benefits to employees and another for employers that do not. The hourly minimum wage will rise to $11.25 from $10.50 if qualifying health benefits are not offered to employees and to $10.25 from $9.50 if qualifying health benefits are offered.

This will be the last year Nevada has two minimum wage rates. Under a 2022 ballot measure, Nevada’s minimum wage will be $12 effective July 1, 2024, for all employers regardless of whether they offer qualifying health benefits.

Oregon: Oregon has three separate minimum wage rates based on geographical areas in the state. The hourly minimum wage will increase to $15.45 from $14.75 for employees working in the Portland metro area and to $13.20 from $12.50 for those working in nonurban counties. The standard minimum wage for the rest of the state will rise to $14.20 from $13.50. The state bureau of labor and industries has a map on its website showing the relevant minimum wage rate for each state county.

Puerto Rico: The hourly minimum wage will increase (Spanish) to $9.50 from $8.50.

New York: Although New York’s minimum wage rates are not increasing in 2023, they will beginning on Jan. 1, 2024, under a budget bill (SB 4006-C) Gov. Kathy Hochul (D) signed May 3. The minimum wage in New York City, as well as Nassau, Suffolk, and Westchester counties, will rise to $16 on Jan. 1, 2024; $16.50 on Jan. 1, 2025; and $17 on Jan. 1, 2026. The hourly rate for the rest of the state will increase to $15 on Jan. 1, 2024; $15.50 on Jan. 1, 2025; and $16 on Jan. 1, 2026.

Local Minimum Wages

Many local jurisdictions in California, Illinois, Maryland, and Minnesota will increase their minimum wage rates on July 1.

The hourly minimum wage will rise in California localities as follows:

• Alameda, to $16.52 from $15.75.
• Berkeley, to $18.07 from $16.99.
• Emeryville, to $18.67 from $17.68.
• Fremont, to $16.80 from $16.
• Los Angeles, to $16.78 from $16.04.
• Los Angeles County, to $16.90 from $15.96.
• Malibu, to $16.90 from $15.96.
• Milpitas, to $17.20 from $16.40.
• Pasadena, to $16.93 from $16.11.
• San Francisco, to $18.07 from $16.99.
• Santa Monica, to $16.90 from $15.96.

Additionally, West Hollywood, California, will increase its hourly minimum wage to $19.08 for all employers. This will be the first time that the locality’s minimum wage for small employers, large employers, and hotel employees will be the same.

Although San Mateo County, California, does not have a minimum wage increase taking effect July 1, the county established a countywide minimum wage rate of $16.50 effective April 1 that applies to employees working in unincorporated areas of the county. Starting Jan. 1, 2024, the rate will be adjusted annually based on changes to the consumer price index.

In Sonoma County, California, the living wage rate will rise to $17.65 from $17.25. While not a minimum wage, the living wage applies to certain private companies and nonprofits that contract with the county government. The increase will be effective July 1 for new contracts and effective Sept. 30 for existing contracts. It applies to private companies with six or more employees if they supply at least $25,000 annually in contracted services to the county, nonprofits with at least 25 employees that supply more than $50,000 annually in services to the county, and any entities that receive more than $100,000 in economic development assistance.

Employers may receive a $1.50 credit off the hourly rate if they contribute to workers’ health care or retirement benefits, or a $3 credit if they contribute to both.

Chicago, Illinois, will increase its hourly minimum wage to $15.80 for domestic workers and employers with at least 21 employees and to $15 for employers with four to 20 employees. The tipped hourly minimum wage will rise to $9.48 for employers with at least 21 employees and to $9 for employers with four to 20 employees. The hourly minimum wage for employees ages 24 and under who are employed in summer and temporary youth employment programs will rise to $13.50 from $12.

Cook County, Illinois, will raise its hourly minimum wage to $13.70 for nontipped employees and to $8 for tipped employees.

Maryland’s Montgomery County will increase its hourly minimum wage to $16.70 for employers with at least 51 employees, $15 for employers with 11 to 50 employees, and $14.50 for employers with 10 or fewer employees.

Minneapolis and St. Paul will increase some of their minimum wage rates. Minneapolis will raise its hourly minimum wage to $14.50 for employers with 100 or fewer employees, but the $15.19 rate for employers with more than 100 employees will remain unchanged. The hourly minimum wage in St. Paul will increase to $11.50 for employers with five or fewer employees, $13 for employers with six to 100 employees, and $15 for employers with 101 to 10,000 employees. The $15.19 rate for employers with more than 10,000 employees will remain unchanged.

(Added Sonoma County living wage rate.)