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Which State Is Raising Its Minimum Wage the Most in 2023?

Older workers will benefit from the pay increases in 26 states

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Workers in half of the nation will earn more money in the new year thanks to increases in state minimum wages. Those boosts can benefit older workers; research has found that minimum wage hikes help them stay in the workforce longer, leading to better finances in retirement. In 20 states, the 2023 minimum wage will be the same as the federal minimum wage of $7.25 per hour for non-tipped workers. But other states and the District of Columbia set minimum wages higher than the federal amount, with the Washington, D.C., minimum wage of $16.10 being the highest state-level wage in the nation. In 2023, Delaware and Washington will see the largest increases, raising their minimum wages by $1.25. Another nine states — Arizona, Colorado, Connecticut, Florida, Illinois, Maine, New Jersey, New York and Virginia — are raising their minimum wages by at least $1 per hour.

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According to data from the U.S. Bureau of Labor Statistics, roughly 20 percent of workers who earn their state’s minimum wage are age 45 or older. One study by researchers from the University of Northern Iowa and the U.S. Census Bureau found that people who received minimum wage increases between ages 62 and 70 delayed claiming Social Security retirement benefits by an average of six months. “[M]inimum wage increases in the United States have helped increase the financial well-being of older individuals by encouraging delayed retirement claiming and increased labor supply later in life,” the study said.

The states listed below will see minimum wage increases in 2023; most increases will take effect on Jan. 1. In Connecticut and Nevada, the increase will occur on June 1 and July 1, respectively. Oregon, which adjusts its minimum wage annually based on the U.S. City Average Consumer Price Index, a statistic compiled by the U.S. Bureau of Labor Statistics, may raise its wage on July 1, though the amount has not been determined yet. Michigan may raise its 2023 minimum wage above $10.10, pending the ruling of a court decision in early 2023. In some cases, employers with fewer than 15 workers may be exempt from paying their state’s minimum wage.

State2023 Minimum WagePrevious Minimum WageIncrease
Alaska$10.85$10.34$0.51
Arizona$13.85$12.80$1.05
California$15.50$15.00$0.50
Colorado$13.65$12.56$1.09
Connecticut$15.00 (effective June 1, 2023)$14.00$1.00
Delaware$11.75$10.50$1.25
Florida$11.00$10.00$1.00
Illinois$13.00$12.00$1.00
Maine$13.80$12.75$1.05
Maryland$13.25$12.50$0.75
Massachusetts$15.00$14.25$0.75
Michigan$10.10*$9.87$0.23
Minnesota$10.59$10.33$0.26
Missouri$12.00$11.15$0.85
Montana$9.95$9.20$0.75
Nevada$11.25 (effective July 1, 2023)$10.50$0.75
New Jersey$14.13$13.00$1.13
New Mexico$12.00$11.50$0.50
New York$14.20$13.20$1.00
Ohio$10.10$9.30$0.80
OregonTo be determined July 1, 2023$13.50TBD
Rhode Island$13.00$12.25$0.75
South Dakota$10.80$9.95$0.85
Vermont$13.18$12.55$0.63
Virginia$12.00$11.00$1.00
Washington$15.74$14.49$1.25

 

*This may increase again in February, pending a court ruling

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