The US started 2023 by raising the minimum wage in 23 states. A budget of more than $5 billion benefiting 8.4 million workers, according to a December 31, 2022 More Perfect Union tweet.
According to the state, the measure responds to adjustments for the cost of living, inflation or as part of programmed increases.
The federal minimum wage in the United States has not been increased in 14 years, the longest period of invariance since the country introduced the basic wage in 1938. However, state laws allow the authorities to approve changes in this regard for each calendar year.
Increase in the minimum wage in the United States
In 2023, the District of Columbia retains the lead in the block of states with the highest minimum wage nationwide. This at $16.50 an hour.
It is followed by the state of Washington with a minimum wage of $15.74 per hour and the state of California in third place. The latter operates at a minimum wage of $15.50 for companies with more than 26 employees and $14.50 for companies with 25 or fewer employees.
According to the State Department, the list of the ten states with the highest minimum wage is as follows:
- Massachusetts: $15/hour
- New York: $15/hour in and around New York City and $14.20/hour in upstate.
- New Jersey: $14.13/hour
- Connecticut: $14.00/hour
- Arizona: $13.85/hour
- Maine: $13.80/hour
- Oregon: $13.50/hour
States with the most discrete increases
Among the 23 states that raised their minimum wage effective January 1, 2023, the lowest report:
- Minnesota: $8.63/hour for small businesses and $10.59/hour for large businesses.
- Montana: $9.95/hour
- Michigan and Ohio: $10.10/hour
- Nebraska: $10.50/hour
- South Dakota: $10.80/hour
- Delaware: $11.75/hour
- New Mexico, Missouri and Virginia: $12.00/hour
- Illinois and Rhode Island: $13.00/hour
- Maryland: $13.25/hour
Minimum wage in the US
The federal salary is $7.25 per hour, but different states have the authority to follow this reference or not.
Of the country’s 50 states, about 30 plus the District of Columbia endorse minimum wages higher than the state minimum wage, according to the National Conference of State Legislatures (NCSL, for its English acronym).
Five states now do not recognize the existence of a state minimum wage. The list includes South Carolina, Alabama, Louisiana, Mississippi, and Tennessee.
The remaining territories accept the federal standard in determining the minimum allowable payment to employees.