To determine minimum wage in 2023, U.S. officials are turning to data collected by the Current Population Survey, a national survey of roughly 60,000 households conducted by the U.S. Census Bureau on behalf of the Bureau of Labor Statistics. One-fourth of the CPS sample is surveyed each month to obtain earnings data. As of May 2018, the federal minimum wage for hourly employees has not changed significantly since 2010.
Minimum wage in 2023
In addition to federal increases, some states are increasing their minimum wages. Eight states have automatic increases based on the cost of living. Ten states passed legislation or passed ballot initiatives to increase the minimum wage in 2020. The rates listed in black are the latest minimum wages. All of them will increase by the end of 2023. Some states, such as Rhode Island, have raised their minimum wages in the past, including New York City and California.
The minimum wage in 2020 is different in each state. States are free to set their own minimum wage, although the federal minimum wage is $7.25 per hour. American Samoa and the Northern Mariana Islands have enacted minimum wage ordinances that have changed the rates for their employees. However, if you are an employer in an area where the minimum wage is lower than the federal minimum wage, you will pay less than the federal minimum.
Federal minimum wage has increased in all states, except the Commonwealth of the Northern Mariana Islands. American Samoa, the District of Columbia, and the Commonwealth of the Northern Mariana Islands have special minimum wage laws. The federal minimum wage is $7.25 per hour, but the rates are different in each state. Listed in black are federal, state, district, territory, or commonwealth minimum wage rates.
Rates listed in gray were enacted by locality or commonwealth
The minimum wage increases are gradually enacted in each state and locality. As of April 1, 2019, twenty-one states have increased their minimum wages. Eight states increased their minimum wages automatically by setting an inflation rate, while ten others raised their minimum wage rates by ballot initiatives or through legislation. The increase in minimum wage has been made possible by a combination of inflation rates and cost of living increases.
Pennsylvania recently announced a minimum wage increase. The minimum wage in Pennsylvania will reach $15 per hour by January 31, 2022. Governor Tom Wolf announced the increase in a recent speech. This increase follows the federal minimum wage of $7.25 an hour, but it does not go to the individual employee. If the employer believes the rate they are paying is lower than the federal minimum wage, they are allowed to do so.
Rates listed in blue were enacted by locality or commonwealth
Most states will increase their minimum wage in 2020. Eight states automatically increase the rate based on inflation, while 10 others will increase their minimum wage by enacting legislation or a ballot initiative. The minimum wage in Pennsylvania is scheduled to increase to $15 an hour by January 31, 2022. But how will the rate be determined? How will the state’s minimum wage affect the minimum wage in other jurisdictions?
Some communities have already raised their minimum wage. In Virginia, Blue Ridge Bank and Norfolk, the minimum wage for all city employees is now $17 an hour. This is not an act of altruism; it is a necessary measure as localities struggle to fill vacant positions during the COVID-19 pandemic that began in early 2020. Several states and localities have adopted minimum wage ordinances, but some have been overturned.
Federal and state minimum wages apply to workers in states that do not have minimum wage laws. State and local minimum wages apply to businesses that have less than $500k in revenue and do not engage in interstate commerce. However, some cities and counties have higher minimum wages than the rest of the state. These higher rates apply to local government contractors and to all work performed in the city or county.
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