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e-Alert: State and Federal Minimum Wage Updates: January 2022

By January 10, 2022No Comments

State and Federal Minimum Wage Updates: January 2022

 

The following states will update their minimum wages effective January 1, 2022, unless otherwise noted.

Federal

Effective January 1, 2022, federal contractors’ minimum wage will increase to $11.25, generally for all current covered contract. Covered contracts that are entered into on or after January 30, 2022, or that are renewed or extended on or after January 30, 2022, will be generally subject to a higher $15.00 minimum wage rate established by Executive Order 14026 of April 27, 2021.

Tipped employees (performing work on or in connection with covered contracts): the minimum wage will increase to $7.90 per hour.

Arizona

The Arizona state minimum wage will increase to $12.80 per hour.

Tipped employees: the minimum wage will increase to $9.80 per hour.

California

The California state minimum wage will increase to $14.00 per hour for employers with 25 or fewer employees. The minimum wage will increase to $15.00 per hour for employers with 26 or more employees.

Effective January 1, 2022, the state will no longer allow subminimum wages to be paid to individuals with disabilities when working in a for-profit organization.

The state will allow non-profit organizations to continue paying subminimum wages to individuals with disabilities. However, these organizations should plan to increase paid wages for these workers to the state minimum wage by January 1, 2025.

Colorado

The Colorado state minimum wage will increase to $12.56 per hour.

Tipped employees: The minimum wage will increase to $9.54 per hour.

Connecticut

Effective July 1, 2022, the Connecticut minimum wage will increase to $14.00 per hour.

Delaware

Delaware’s state minimum wage will increase to $10.50 per hour. This is part of incremental increases to get the state to the desired $15.00 per hour minimum wage rate by January 1, 2025.

Disabled Employees: Effective October 20, 2021, Delaware banned subminimum wage for disabled employees. The law requires that the authorization to pay individuals with disabilities less than the minimum wage required to be paid to other employees will be phased out by January 31, 2024.

Tipped employees: The minimum wage will remain at $2.23 per hour.

Florida

Effective September 30, 2022, the Florida minimum wage will increase to $11.00 per hour.

Illinois

The Illinois state minimum wage will increase to $12.00 per hour.

Tipped employees: The minimum wage will increase to $7.20 per hour.

Maine

The Maine state minimum wage will increase to $12.75 per hour.

Tipped employees: The minimum wage will increase to $6.38 per hour.

Maryland

The state minimum wage will increase to $12.50 per hour for employers with 15 or more employees. the minimum wage will increase to $12.20 per hour for employers with 14 or fewer employees.

Tipped employees: The minimum wage will remain the same at $3.63 per hour.

Massachusetts

The Massachusetts state minimum wage will increase to $14.25 per hour.

Tipped employees: The minimum wage will increase to $6.15 per hour.

Michigan

The Michigan state minimum wage will increase to $9.87 per hour.

Tipped employees: The minimum wage will increase to $3.75 per hour.

Minnesota

The Minnesota state minimum wage will increase to $10.33 per hour for large employers (annual gross revenue of $500,000 or more). The minimum wage will increase to $8.42 per hour for small employers (annual gross revenue of $499,999 or less).

Missouri

The Missouri state minimum wage will increase to $11.15 per hour.

Tipped employees: Employers must also pay tipped employees at least half of the minimum wage, plus any amount necessary to bring the employee’s total compensation to $11.15 per hour.

Montana

The Montana state minimum wage will increase to $9.20 per hour.

Nevada

Effective July 1, 2022, the Nevada state minimum wage will increase to $9.50 per hour for employees who receive health benefits and $10.50 per hour for employees who do not receive health benefits.

New Jersey

The New Jersey state minimum wage will increase to $13.00 per hour for large employers with six or more employees. The minimum wage will increase to $11.90 per hour for small employers with five or fewer employees.

New Mexico

The New Mexico state minimum wage will increase to $11.50 per hour.

Tipped employees: The minimum wage will increase to $2.80 per hour.

New York

The New York state minimum wage will increase to $13.20 per hour across the state. In Long Island and Nassau, Suffolk, and Westchester counties, the minimum wage will increase to $15.00 per hour.

Tipped Service Employees: New York is unique in how it assigns minimum wage:

  • Resorts: $11.00 per hour
  • General: $11.00 per hour
  • Tipped food service: $8.80 per hour

Ohio

The Ohio state minimum wage will increase to $9.30 per hour for large employers (at least $342,000 in gross annual revenue). All other employers will remain at the federal minimum wage of $7.25 per hour.

Tipped employees: The minimum wage will increase to $4.65 per hour.

Oregon

Effective July 1, 2022, the Oregon state minimum wage will increase to $13.50 per hour.

In the Portland metro area, the minimum wage is still $14.00 per hour, and in Oregon’s non-urban counties, the minimum wage is $12.00 per hour.

Rhode Island

The Rhode Island state minimum wage will increase to $12.25 per hour.

Tipped employees: The minimum wage will remain at $3.89 per hour.

South Dakota

The South Dakota state minimum wage will increase to $9.95 per hour.

Tipped Employees: The hourly minimum wage for tipped employees will be $4.975/hour effective Jan. 1, 2022, half the minimum wage for non-tipped employees. Wages and tips combined must equal at least the minimum wage.

Vermont

The Vermont state minimum wage will increase to $12.55 per hour.

Tipped Employees: The minimum wage will increase to $6.28 per hour.

Virginia

The Virginia state minimum wage will increase to $11.00 per hour.

Washington

The Washington state minimum wage will increase to $14.49 per hour.

Employer Next Steps

If HR Knowledge processes your payroll, please contact your Client Account Manager to inform them of any employees’ hourly rates that need to be changed to meet the new state minimum wage requirements.

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This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this content, please contact HR Knowledge at 508.339.1300 or email us.

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