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© 2022 American Payroll Institute, Inc. Ongoing State and Local Minimum Wage Updates As states and localities announce adjustments to minimum wage rates based on inflation and changes from recently passed legislation (see PAYSTATE UPDATE, Issue 17, Vol. 24), those updates will be provided in state-by-state as they are announced. Comprehensive charts of state and local minimum wage rates will be provided closer to the end of the year. Any important details that extend beyond the actual minimum wage and tip credit changes will be provided separately from the chart. Regarding California’s minimum wage increase, the Director of the Department of Finance certified in July that based on the annual inflation rate, the state hourly minimum wage will increase, effective January 1, 2023, to $15.50 an hour (regardless of the number of workers employed by an employer). The State Labor Commissioner’s minimum wage website confirms this. The governor of California could make a different determination, but previously requested those rates as part of an inflation relief proposal. The following chart provides state minimum wage rates and tip credit amounts that have recently been announced and will change mid-year or effective January 1, 2023, unless indicated otherwise. State minimum wage rates that increased July 1 of this year were published in PAYSTATE UPDATE, Issue 13, Vol. 24. Local minimum wage rates that increased July 1 of this year were published in PAYSTATE UPDATE, Issue 14, Vol. 24. State and city names are linked to the relevant agency website. The updated minimum wage is linked to an updated minimum wage notice or poster, if available. Recent State and Local Minimum Wage Increases Effective January 1, 2023 State/City Current Minimum Wage Minimum Wage Eff. January 1, 2023 Current Tip Credit Tip Credit Eff. January 1, 2023 Arizona $12.80 $13.85 $3.00 $3.00 Flagstaff, AZ $15.50 $16.80 $2.50 $2.00 California1 large employers $15.00 large employers $15.50 Prohibited small employers $14.00 small employers $15.50 Burlingame, CA $15.60 $16.47 Daly City, CA $15.53 $16.07 Palo Alto, CA $16.45 $17.30 Petaluma, CA $15.85 $17.06 San Diego, CA $15.00 $16.25 Santa Rosa, CA $15.85 $17.06 Colorado $12.56 $13.65 $3.02 $3.02 Florida $10.00* *until 9-30-22 $11.00* *eff. 9-30-22 $3.02* *until 9-30-22 $3.02* *eff. 9-30-22 Hawaii $10.10* *until 10-1-22 $12.00* *eff. 10-1-22 $0.75* *until 10-1-22 $1.00* *eff. 10-1-22 Minnesota2 large employers $10.33 large employers $10.59 prohibited small employers $8.42 small employers $8.63 Minneapolis, MN3 large employers large employers3 $15.19 small employers small employers*3 $14.50 *eff. 7-1-23 October 3, 2022 Volume 24 Issue 19