States with the Highest Minimum Wages in 2023

Since July 2009, the federal minimum wage for workers has been $7.25.

Depending on your state, you could be earning more than that though. Many states, cities, and localities have their own minimum wage laws.

In states where employers are subject to state and federal minimum wage laws, employees earn the higher of the two wages. For example, as of January 1, 2024, if you work a minimum wage job for an employer in Illinois, you’d earn $14 per hour instead of the federal minimum wage of $7.25.

Not every state has a minimum wage law. Alabama, Louisiana, Mississippi, South Carolina, and Tennessee don’t have state minimum wage laws. Instead, they’ve adopted the federal minimum wage of $7.25.

According to the Bureau of Labor Statistics, in 2022, about 141,000 workers paid by the hour earned exactly the federal minimum wage of $7.25. An additional 882,000 workers, however, were paid less than the federal minimum wage.

States with the Highest Minimum Wage Rates in 2023

According to the US Department of Labor, below are the states with the highest wages on September 30, 2023.

1. Washington $16.28

Washington’s minimum wage is indexed to inflation, meaning it has to be updated annually to account for the cost of living. As inflation spiked in 2022, Washington’s minimum wage climbed, driving the state to the top of the list. Some cities in the state have even higher minimum wages – including Seattle, at $18.69.

2. California $15.50

In previous years, California’s minimum wage depended on employer size. This year, though, the state adopted a uniform $15.50 minimum wage. Next year, California’s minimum wage is scheduled to climb to $16.

3. Connecticut $15.00

Connecticut’s minimum wage has climbed over the past few years in a series of $1 increments. Next year, it’s set to climb by an additional 69 cents, based on an inflation-linked calculation. If the federal minimum wage ever catches up or becomes equal to the state’s rate, Connecticut will automatically increase its wage to .5% above it.

4. Massachusetts $15.00

According to state policy, Massachusetts’s minimum wage has to be at least $.50 more than the federal minimum wage, and the state has gone well beyond $7.25. Following two successive annual 75-cent increases, Massachusetts’s minimum wage reached $15 in 2023.

5. New York $14.20

New York’s minimum wage depends on where in the state you work. In New York City, Westchester County, and Long Island, the minimum wage is $15. The rest of the state abides by a minimum wage of $14.20, though it is expected to increase annually until it eventually reaches $15 as well.

6. Oregon $14.20

Oregon has three different minimum wages. How much workers in Oregon earn depends on where they work. The state’s standard minimum wage is $14.20, but Portland Metro Area workers earn at least $15.45. Workers in non-urban areas, meanwhile, earn just $13.20 per hour.

7. New Jersey $14.13

In 2018, New Jersey’s minimum wage was just $8.60 an hour. In recent years, though, that figure has climbed and currently sits at $14.13. Next year, the state expects to have a minimum wage of $15.13 an hour.

8. Arizona $13.85

After voters approved a statewide proposal in 2016, Arizona’s minimum wage has increased along with the cost of living. With the spike in inflation last year, the state’s minimum wage increased from $12.80 to $13.85. Next year, that figure is set to climb by an additional 50 cents.

9. Maine $13.80

Maine’s minimum wage is adjusted based on inflation figures for the Northeast region. In 2023, the state’s minimum wage climbed to $13.80 and is set to increase again to $14.15 next year. If the federal minimum wage ever exceeds Maine’s, the state’s minimum wage is set to increase to match it.

10. Colorado $13.65

In 2006, Colorado’s state legislature passed a policy declaring the state’s minimum wage would keep up with inflation based on the consumer price index. Localities in Colorado also have the ability to pass their own minimum wage. Denver’s minimum wage for people who work more than four hours per week rose to $17.29 in 2023.

Honorable Mention: Washington D.C. $17.00

If the District of Columbia were a state, it would have grabbed the honor of the state with the highest minimum wage. In 2023, the minimum wage increased 90 cents to $17.

States that pay less than the federal minimum wage

According to the US Department of Labor, Georgia and Wyoming have a minimum wage that is less than the federal level. As of September 30, 2023, both states have a minimum wage of $5.15.

But how is it possible for someone to earn less than the national minimum wage?

Generally, wage workers in Wyoming and Georgia do earn the federal minimum wage of $7.25, but there are a few exceptions for employers who don't fall under the Fair Labor Standards Act (FLSA). However, most medium and large employers fall under the FLSA, so most workers in these two states earn at least $7.25 an hour.

Which states increased minimum wage in 2023

Plenty of states increased their minimum wage in 2023. High inflation contributed to many of these increases, but growing political pressure over the past few years for minimum wage hikes played a role as well.

Below is a full list of all states that increased their minimum wage this year, along with the magnitude of the increase.