Minimum Wage Updates for 2023

The Fair Labor Standards Act (FLSA) is a United States Labor Law that was introduced in 1938. The FLSA established the right to minimum wage, time-and-a-half overtime and put an end to oppressive child labor.

Since the introduction of the federal minimum wage in 1938, the US Congress has raised the minimum wage 9 times. The last time was July 24, 2009, from $6.55 to $7.25.

Currently, states like Alabama, Georgia, New Hampshire and North Carolina are aligned with the federal minimum wage at $7.25; however, there are six states that have set their hourly minimum wage to over $14 for 2023.

Both New York and New Jersey are two of the six states with hourly minimum wages above $14.

New York and New Jersey’s minimum wages are linked to the Consumer Price Index (CPI). This means their minimum wage rate is re-evaluated yearly based on the inflation rate.

New York’s minimum wage went from $13.20 in 2022 to $14.20 for 2023, an increase of one dollar. While New Jersey has increased from $13.00 to $14.13 for 2023 and is on the path to $15/hour.

The anticipated increase for New York City, Long Island & Westchester counties are still to be determined.

Employers of all sizes are required to post Labor Law notices reflecting the minimum wage rates - these can be found in State Labor Law Posters.

Click here to see if your business location has a new minimum wage in 2023 based on your state’s changes.