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Along with the new year comes new minimum wages for several states on January 1, 2022, that employers should be aware of.

As a reminder, when state law differs from federal law, employers must use the wage that benefits the employee the most. In this case, the state minimum wages are higher than the $7.25 federal minimum wage; therefore, the state’s wage must be used.

Additionally, on April 27, 2021, President Biden issued an Executive Order increasing the federal contractor hourly minimum wage to $15, effective January 30, 2022.

hourly state wages effective January 1, 2022
  • Arizona: $12.80
  • California (26+ employees): $15.00. Employers in California with 25 or fewer employees have a minimum wage of $14.00 per hour.
  • Colorado: $12.56
  • Delaware: $10.50
  • Illinois: $12.00
  • Maine: $12.75
  • Maryland (15+ employees): $12.50. Employers in Maryland with 14 or fewer employees have a minimum wage of $12.20 per hour.
  • Massachusetts: $14.25
  • Michigan: $9.87
  • Minnesota: ($500,000+ annual gross revenues): $10.33. Employers in Minnesota with less than $500,000 annual gross revenues have a minimum wage of $8.42 per hour.
  • Missouri: $11.15
  • Montana: $9.20
  • New Jersey (6+ employees): $13.00. Employers in New Jersey with 5 or fewer employees have a minimum wage of $11.90 per hour.
  • New Mexico: $11.50
  • New York: $13.20
  • Ohio: $9.30
  • Puerto Rico: $8.50
  • Rhode Island: $12.25
  • South Dakota: $9.95
  • Vermont: $12.55
  • Virginia: $11.00
  • Washington: $14.49

As with any other regulation, these wages are subject to last-minute changes. For the latest wages, please visit the Department of Labor online.

Several states have cities, counties, or tribes with different minimum wages. This includes Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kentucky, Maine, Maryland, Michigan, Minnesota, Montana, New Mexico, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, and Wisconsin. As with state minimum wages, the wage that benefits the employee the most must be used.

Questions? Nextep experts are here to help! Contact us online or at 888-811-5150.

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