Despite talk of raising it, the federal minimum wage is still $7.25 per hour and unchanged for most states that have historically maintained the federal standard. However, many states that have higher minimum wage rates have announced *increases for 2022.
When the state rate and federal rate differ, employers must pay the higher of the two. Although most of these increased rates take effect January 1, 2022, several occur mid-year. Please see the following list of all states, their minimum wage rates for 2022, and their effective dates:
- Alabama: $7.25 (already in effect)
- Alaska: $10.34 (already in effect; tips do not count toward minimum wage)
- Arizona: $12.80 (effective January 1, 2022; $3 below minimum wage for tipped employees)
- Arkansas: $11 (already in effect for employers with 4+ employees; $2.63 for tipped employees)
- California: $14 or $15 (effective January 1, 2022; $15 for employers with 26+ employees; $14 for employers with 25 or fewer employees; no tip credit; see California Department of Industrial Relations for state wage orders)
- Colorado: $12.56 (effective January 1, 2022; $9.54 for tipped employees)
- Connecticut: $14 (effective July 1, 2022)
- Delaware: $10.50 (effective January 1, 2022)
- District of Columbia: $15.20 (already in effect; $5.05 for tipped employees)
- Florida: $11 (effective September 30, 2022; $6.98 for tipped employees)
- Georgia: $7.25 (already in effect; $5.15 state rate for those not covered by federal minimum)
- Hawaii: $10.10 (already in effect; $9.35 for tipped employees)
- Idaho: $7.25 (already in effect; $3.35 for tipped employees)
- Illinois: $12 (effective January 1, 2022 for 4+ employees; tip credit cannot exceed 40% of minimum wage; $7.20 for tipped employees; $9.25 for youth under 18 years old working fewer than 650 hours per calendar year)
- Indiana: $7.25 (already in effect; $2.13 for tipped employees)
- Iowa: $7.25 (already in effect; $4.35 for tipped employees)
- Kansas: $7.25 (already in effect; $2.13 for tipped employees)
- Kentucky: $7.25 (already in effect; $2.13 for tipped employees)
- Louisiana: $7.25 (already in effect)
- Maine: $12.75 (effective January 1, 2022; $6.38 for tipped employees)
- Maryland: $12.50 (effective January 1, 2022 for employers with 15+ employees; $3.63 for tipped employees; $12.20 for employers with 14 or fewer employees; see also Montgomery and Prince George counties)
- Massachusetts: $14.25 (effective January 1, 2022; $6.15 for tipped employees)
- Michigan: $9.65 (already in effect; $3.67 for tipped employees)
- Minnesota: $10.33 or $8.42 (effective January 1, 2022; higher rate is for employers that annually gross $500,000 or more; lower rate is for small employers, employees under 18 years old, and employees under 20 years old during first 90 days of work)
- Mississippi: $7.25 (already in effect)
- Missouri: $11.15 (effective January 1, 2022)
- Montana: $9.20 or $4 (effective January 1, 2022; no tip credit; meal credit or training wage is allowed; $4 rate is for businesses with gross annual sales of $110,000 or less not covered by federal minimum wage law)
- Nebraska: $9 (already in effect; $2.13 for tipped employees)
- Nevada: $10.50 or $9.50 (effective July 1, 2022; higher rate for employees without health benefits; no tip credit)
- New Hampshire: $7.25 (already in effect; tipped employees must receive 45% applicable rate)
- New Jersey: $13 (effective January 1, 2022 for 6+ employees; $10.90 for agriculture; $11.90 for seasonal or fewer than 6 employees; $5.13 for tipped employees)
- New Mexico: $11.50 (effective January 1, 2022; $2.80 for tipped employees)
- New York: $15/$13.20 (effective December 31, 2021; $15 for employees in New York City, fast food workers, Long Island and Westchester employees; $13.20 for all others; see New York Department of Labor for rates that vary by industry)
- North Carolina: $7.25 (already in effect; $2.13 for tipped employees)
- North Dakota: $7.25 (already in effect; $4.86 for tipped employees)
- Ohio: $9.30 (effective January 1, 2022; $4.65 for tipped employees; employers that gross less than $342,000 must pay no less than $7.25)
- Oklahoma: $7.25 or $2 for those not covered by FLSA (already in effect)
- Oregon: $13.50 (effective July 1, 2022; $14.75 for Portland metropolitan area; $12.50 for non-urban counties; no tip credit allowed)
- Pennsylvania: $7.25 (already in effect; $2.83 for tipped employees)
- Rhode Island: $12.25 (effective January 1, 2022; $3.89 for tipped employees)
- South Carolina: $7.25 (already in effect)
- South Dakota: $9.95 (effective January 1, 2022; $4.975 for tipped employees)
- Tennessee: $7.25 (already in effect)
- Texas: $7.25 (already in effect; $2.13 for tipped employees)
- Utah: $7.25 (already in effect; $2.13 for tipped employees)
- Vermont: $12.55 (effective January 1, 2022; $6.28 for tipped employees)
- Virginia: $11 (effective January 1, 2022; same minimum wage for tipped employees)
- Washington: $14.59 (effective January 1, 2022; no tip credit allowed; Workers 14-15 years old may be paid $12.32/hour)
- West Virginia: $8.75 for 6+ employees (already in effect; employers can take a tip credit of up to 70% the state rate)
- Wisconsin: $7.25 (already in effect; $2.33 for tipped employees)
- Wyoming: $5.15 for those not covered by FLSA (already in effect; $2.13 for tipped employees)
Related articles:
*States that have announced increases to their minimum wage for 2022 include:
- Arizona
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Illinois
- Maine
- Maryland
- Massachusetts
- Minnesota
- Missouri
- Montana
- Nevada
- New Jersey
- New Mexico
- New York
- Ohio
- Oregon
- Rhode Island
- South Dakota
- Vermont
- Virginia
- Washington
What should employers do about the new 2022 minimum wage rates?
Employers that have employees working in any states where minimum wages are increasing should review their employees’ pay rates and make any required adjustments. Companies should also update their minimum wage poster notices as necessary to ensure compliance with local wage regulations.
Youth Minimum Wage for 2022
In most states, workers under the age of 20 may be paid a lower “training” minimum wage for the first 90 consecutive calendar days of employment when their work does not displace another worker. This applies to all employers covered by the FLSA, unless prohibited by state or local law. After 90 days, the teen must receive at least the federal minimum rate of $7.25/hr or the higher state minimum wage rate.
For questions about minimum wage or help with other wage and/or compliance matters, please contact our certified HR experts at HR@stratus.hr.