Eastern states set to enact higher minimum wages in 2023
Nine of the eleven states in the CSG Eastern Region are set to increase their state-mandated minimum wages in 2023.
The increases in all nine states follow schedules set by previously passed legislation, most of which set multi-year schedules containing pre-determined increases in the hourly wage floor.
In Connecticut, Delaware, Maine, New Jersey, and New York, workers will earn a full dollar more than they did in 2022.
Both Connecticut and Massachusetts will require most employers in their state to pay $15.00/hour. The Massachusetts wage went into effect January 1; Connecticut will implement its $15/hour wage starting on June 1, 2023.
In all, 23 states and Washington, D.C. raised their minimum wages on January 1, raising pay for an estimated 8.4 million workers across the country, according to the Economic Policy Institute. They estimate that “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.”
Many states are also choosing to set their minimum wage increases to follow rising inflation rates and the Consumer Price Index. According to the Economic Policy Institute, 13 states and the District of Columbia have policies that increase (or index) their state’s minimum wage based on inflation.
In New Jersey, for example, the statutory wage was increased to $14.00 on January 1 of this year, but state law also stipulates that “the ‘effective minimum wage rate’ for any given year is the highest of the federal minimum wage rate, the minimum wage rate set by New Jersey statute, or a minimum wage rate adjusted to account for increases in the Consumer Price Index (CPI).” After a year of high inflation, it is the third rate that will prevail in 2023, resulting in the precise (if a little ugly) hourly rate of $14.13/hour.
Most states exclude some workers and employers from the state minimum wage, including tipped workers, seasonal employees, employees working at businesses under a certain size, farm workers, inmates participating in work programs, and others. Many exclusions mirror those included in the Fair Labor Standards Act (FLSA).
Pennsylvania and New Hampshire do not have state minimum wage laws, and instead enforce the federal minimum wage of $7.25.
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*Federal, no state minimum wage