While the federal minimum wage remains unchanged, states and municipalities are hiking local wage rates. Workers in half of the states will see rate increases in 2022.
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Background
The federal minimum wage was last raised in 2009, to the current $7.25 per hour. While a majority of state minimum wage rates now exceed the federal minimum, five states — Alabama, Louisiana, Mississippi, South Carolina and Tennessee — have not adopted a state minimum wage and two states — Georgia and Wyoming — have a minimum wage below $7.25 per hour.
Despite the push by organized labor and other groups for a nationwide hourly minimum of $15, there appears to be no consensus in Congress on raising the federal floor. In the absence of movement at the federal level, state and local rate increases have gained traction.
State minimum wage rates rise
As shown below, more than twenty states raised their minimum wages on January 1, as new laws or indexed increases took effect. Others have increases scheduled for later in 2022.
| State | 2021 minimum wage (as of 12/30/21) | 2022 minimum wage (as of 1/1/22) | Other 2022 scheduled increases |
| Arizona | $12.15 | $12.80 | |
|
California (≥26 employees) (≤25 employees) |
$14.00 $13.00 |
$15.00 $14.00 |
|
| Colorado | $12.32 | $12.56 | |
| Connecticut | $13.00 | $13.00 | $14.00, eff. 7/1/22 |
| Delaware | $9.25 | $10.50 | |
| District of Columbia | $15.20 | $15.50 | $16.10, eff. 7/1/22 |
| Florida | $10.00 | $10.00 | $11.00, eff. 9/30/22 |
| Illinois | $11.00 | $12.00 | |
| Maine | $12.15 | $12.75 | |
| Maryland | $11.75 (≥15 employees)
$11.60 (≤14 employees) |
$12.50 (≥15 employees)
$12.20 (≤14 employees) |
|
| Massachusetts | $13.50 | $14.25 | |
| Michigan | $9.65 | $9.87 | |
| Minnesota | $10.08 (≥$500K revenue)
$8.21 (<$500K revenue) |
$10.33 (≥$500K revenue)
$8.42 (<$500K revenue) |
|
| Missouri | $10.30 | $11.15 | |
| Montana | $8.75 | $9.20 | |
| Nevada | $8.75 (with health benefits)
$9.75 (no health benefits) |
$8.75 (with health benefits)
$9.75 (no health benefits) |
$9.50 (with health benefits), eff. 7/1/22
$10.50 (no health benefits), eff. 7/1/22 |
| New Jersey | $12.00 (≥6 employees)
$11.10 (<6 employees) |
$13.00 (≥6 employees)
$11.90 (<6 employees) |
|
| New Mexico | $10.50 | $11.50 | |
| New York (excluding New York City, Long Island, Westchester County) | $12.50 | $13.20 (eff. 12/31/21) | |
| Ohio | $8.80 | $9.30 | |
| Oregon | $12.75 | $12.75 | $13.50, eff. 7/1/22 |
| Rhode Island | $11.50 | $12.25 | |
| South Dakota | $9.45 | $9.95 | |
| Vermont | $11.75 | $12.55 | |
| Virginia | $9.50 | $11.00 | |
| Washington | $13.69 | $14.49 |
Local minimum wage rates rise
In addition to state minimum wage hikes, a number of major cities and counties increased their wage rates on January 1 or scheduled increases for later in 2022. Select localities are listed below.
| Municipality or county (by state) | 2021 minimum wage (as of 12/30/21) | 2022 minimum wage (as of 1/1/22) | Other 2022 scheduled increases and effective dates |
| Arizona
Flagstaff |
$15.00 |
$15.50 |
|
| California
Alameda |
$15.00 |
$15.75 |
|
| Belmont | $15.90 | $16.20 | |
| Berkeley | $16.32 | $16.32 | $16.32 plus CPI adjustment, eff. 7/1/22 |
| Burlingame | $15.00 | $15.60 | |
| Cupertino | $15.65 | $16.40 | |
| Daly City | $15.00 | $15.53 | |
| East Palo Alto | $15.00 | $15.60 | |
| El Cerrito | $15.61 | $16.37 | |
| Emeryville | $17.13 | $17.13 | $17.13 plus CPI adjustment, eff. 7/1/22 |
| Half Moon Bay | $15.00 | $15.56 | |
| Hayward | $15.00 (≥26 employees)
$14.00 (≤25 employees) |
$15.56 (≥26 employees)
$14.52 (≤25 employees) |
|
| Los Altos | $15.65 | $16.40 | |
| Los Angeles | $15.00 | $15.00 | $16.04, eff. 7/1/22 |
| Los Angeles County (unincorporated) | $15.00 | $15.00 | $15.00 plus CPI adjustment, eff. 7/1/22 |
| Malibu | $15.00 | $15.00 | $15.00 plus CPI adjustment, eff. 7/1/22 |
| Menlo Park | $15.25 | $15.75 | |
| Milpitas | $15.65 | $15.65 | $15.65 plus CPI adjustment, eff. 7/1/22 |
| Mountain View | $16.30 | $17.10 | |
| Oakland | $14.36 | $15.06 | |
| Novato | $15.24 (≥100 employees)
$15.00 (26-99 employees) $14.00 (≤25 employees) |
$15.77 (≥100 employees)
$15.53 (26-99 employees) $15.00 (≤25 employees) |
|
| Palo Alto | $15.65 | $16.45 | |
| Petaluma | $15.20 (≥26 employees) | $15.85 (≥26 employees) | |
| Redwood City | $15.62 | $16.20 | |
| Richmond | $15.21 | $15.54 | |
| San Carlos | $15.24 | $15.77 | |
| San Diego | $14.00 | $15.00 | |
| San Francisco | $16.32 | $16.32 | $16.32 plus CPI adjustment, eff. 7/1/22 |
| San Jose | $15.45 | $16.20 | |
| San Mateo | $15.62 | $16.20 | |
| Santa Clara | $15.65 | $16.40 | |
| Santa Monica | $15.00 | $15.00 | $15.00 plus CPI adjustment, eff. 7/1/22 |
| Santa Rosa | $15.20 | $15.85 | |
| Sonoma
|
$15.00 (≥26 employees)
$14.00 (≤25 employees) |
$16.00 (≥26 employees)
$15.00 (≤25 employees) |
|
| South San Francisco | $15.25 | $15.80 | |
| Sunnyvale | $16.30 | $17.10 | |
| Colorado
Denver |
$14.77 | $15.87 | |
| Illinois
Chicago |
$15.00 (≥21 employees)
$14.00 (4-20 employees) |
$15.00 (≥21 employees)
$14.00 (4-20 employees) |
$15.00 plus CPI adjustment, eff. 7/1/22
$14.50, eff. 7/1/22 |
| Maryland
Montgomery County |
$15.00 (≥51 employees)
$14.00 (11-50 employees) $13.50 (≤10 employees) |
$15.00 (≥51 employees)
$14.00 (11-50 employees) $13.50 (≤10 employees) |
$14.50, eff. 7/1/22 $14.00, eff. 7/1/22 |
| Minnesota
Minneapolis |
$14.25 (≥100 employees)
$12.50 (≤99 employees) |
$14.25 (≥100 employees)
$12.50 (≤99 employees) |
$15.00, eff. 7/1/22
$13.50, eff. 7/1/22 |
| New Mexico
Albuquerque |
$10.50 (no health benefits)
$9.50 (with health benefits) |
$11.50 (no health benefits)
$10.50 (with health benefits) |
|
| Las Cruces | $10.50 | $11.50 | |
| New York
New York City |
$15.00 | $15.00 | |
| Nassau, Suffolk, Westchester Counties | $14.00 | $15.00 (eff. 12/31/21) | |
| Remainder of New York State | $12.50 | $13.20 (eff. 12/31/21) | |
| Washington
Sea Tac (hospitality and transportation) |
$16.57 | $17.54 | |
| Seattle
|
$16.69 (≥501 employees)
$16.69 (≤500 employees no benefits) $15.00 (≤500 employees with benefits) |
$17.27 (≥501 employees)
$17.27 (≤500 employees no benefits) $15.75 (≤500 employees with benefits) |
While most states have overtime exemptions that are similar to those under the federal Fair Labor Standards Act, some base their exemptions on the state minimum wage. (See our April 3, 2014 FYI In-Depth.) Employers that operate in those jurisdictions must ensure that changes in applicable state wage rates do not impact employees’ overtime eligibility.
In closing
As minimum wage laws continue to change, employers need to review and, as needed, adjust their pay practices to ensure compliance in each of the locations where they operate.
Volume 45 | Issue 08