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
($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)
($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)
($3 for tipped employees)
($15.00 for fast food workers)
($5.05 for tipped employees)
($3.89 for tipped employees)
($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
|Locality||January 1, 2023 Rate|
|Daly City, California||$16.07|
|East Palo Alto, California||$16.50|
|El Cerrito, California||$17.35|
|Foster City, California||$16.50|
|Half Moon Bay, California||$16.45|
($15.50 for employers with 25 or fewer employees)
|Los Altos, California||$17.20|
|Menlo Park, California||$16.20|
|Mountain View, California||$18.15|
|Palo Alto, California||$17.25|
|Redwood City, California||$17.00|
|San Carlos, California||$16.32|
|San Diego, California||$16.30|
|San Jose, California||$17.00|
|San Mateo, California||$16.75|
|Santa Clara, California||$17.20|
|Santa Rosa, California||$17.06|
($16.00 for employers with 25 or fewer employees)
|South San Francisco, California||$16.70|
|West Hollywood, California||$17.50
($17.00 for employers with 49 or fewer employees)
|Howard County, Maryland||$15.00
($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)|
($16.50 for some employers with 500 or fewer employees)