Record Inflation Pulls New Year Wage Hikes Higher than Ever

A New Year means new wage hikes for employers around the country to brace for. Throughout 2023, 89 jurisdictions will raise minimum wages, including 29 states, 59 cities and counties (including New York and Oregon’s separate county rates), and Puerto Rico. View a full list of all the new updates here.

See the top 10 state and local minimum wages planned for this year below:

Top 10 State Minimum Wages in 2023
State Date Effective Minimum Wage Tipped Wage
Washington 1/1/2023 $15.74 $15.74
California (large employers) 1/1/2023 $15.50 $15.50
Massachusetts 1/1/2023 $15.00 $6.75
Connecticut 7/1/2023 $15.00 $6.38
Oregon (standard) 7/1/2023 $14.55* $14.55*
New York (standard) 12/31/2022 $14.20 $9.45
New Jersey (large employers) 1/1/2023 $14.13 $5.26
Arizona 1/1/2023 $13.85 $10.85
Maine 1/1/2023 $13.80 $6.90
Colorado 1/1/2023 $13.65 $10.63


Top 10 Local Minimum Wages in 2022
City Date Effective Minimum Wage Tipped Wage
SeaTac, WA 1/1/2023 $19.06 $19.06
Tukwila, WA 7/1/2023 $19.06 $19.06
West Hollywood, CA (hotel employees) 1/1/2023 $18.86 $18.86
Seattle, WA (large employers) 1/1/2023 $18.69 $18.69
Emeryville, CA 7/1/2023 $18.21* $18.21*
Mountain View, CA 1/1/2023 $18.15 $18.15
Berkeley, CA 7/1/2023 $18.07* $18.07*
San Francisco, CA 7/1/2023 $18.07* $18.07*
Sunnyvale, CA 1/1/2023 $17.95 $17.95
El Cerrito, CA 7/1/2023 $17.35 $17.35

*These minimum wage values represent estimations of the planned 2023 increases based on each local Consumer Price Index and are subject to change.

Eighty-three of these jurisdictions are also raising their tipped minimum wages, or the hourly rates required for employees who earn regular tip income. Out of these 83, seven states do not allow a tip credit (Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington), which dictate local restrictions against tip credits as well. This November, voters in the District of Columbia also approved a ballot measure to eliminate the city’s tip credit by 2027.

Sixty-six states, counties, and cities are indexing their minimum wage rates according to inflation this year, at an average increase of roughly 5.5%.

The historical track record of steep minimum wage mandates is clear: they cause job loss and business closure. As employers and employees alike weather ongoing supply chain problems, rising inflation, and lingering government COVID-19 restrictions, this wave of minimum wage increases presents yet another challenge to keeping workers employed and business doors open.