New Year Ushers In Minimum Wage Hikes Across the U.S.

Twenty-three states increased the hourly pay rate on Jan. 1.
A dollar bill with minimum wage in scrabble tiles

WASHINGTON, D.C. — An estimated 8.4 million workers will see more in their paychecks with the start of 2023.

According to the Economic Policy Institute (EPI), 23 states and Washington, D.C., increased the minimum wage on Jan. 1. In total, workers' wages will increase by more than $5 billion, with average annual raises for affected full-time workers ranging from $150 in Michigan to $937 in Delaware.

In addition, 27 cities and counties increased their minimum wages on Jan. 1, EPI noted.

The federal minimum wage remains at $7.25 an hour.

On the lower end of the increases, Michigan's minimum wage rose 23 cents to $10.10 an hour. On the higher end, Nebraska's hourly wage rose $1.50 to $10.50 an hour. When the calendar turned to 2023, Washington became the state with the highest minimum wage at $15.74 an hour.

Additionally, Washington, D.C., will not increase its regular minimum wage, but will increase its tipped minimum wage by 65 cents to $6 an hour as a result of a ballot measure to eliminate the tipped minimum wage by 2027, according to EPI.

Some of the changes were driven by automatic inflation-linked adjustments while others were the result of legislative action and ballot measures.

With the annual inflation adjustments in Washington State ($15.74) and a legislative change in Massachusetts ($15), both states' minimum wages are now at or above $15 an hour. The two states join California, Washington, D.C, and the New York City and suburban regions of New York as states with minimum wages at or above that $15, EPI reported.

Ten more states — Hawaii, Florida, Illinois, Nebraska, New Jersey, Connecticut, Delaware, Maryland, Virginia and Rhode Island — will reach $15 an hour or more by 2026.