16.02 Explanatory: Minimum Wage is the lowest hourly wage rate an employer can legally pay their employees. It is set by the government and applies to all employers, regardless of size. There are several types of minimum wage, including federal minimum wage, state minimum wage, and local minimum wage. Federal minimum wage is the legally mandated minimum wage rate set by the US federal government, while state and local minimum wage is set by individual states and localities. The current federal minimum wage is $7.25 an hour, and some states and localities have set higher rates than the federal rate. In some areas, employers must pay their employees a wage equal to or higher than the minimum wage.
16.02 EXPLANATORY: MINIMUM WAGE
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FAQ
About 560,000 child-care workers would benefit from increasing the federal minimum wage to $15 per hour. Child-care workers have been hit hard by the Covid-19 pandemic. But a new report finds that raising the federal minimum wage to $15 per hour could benefit more than half a million employees.
The average increase for 2023 will fall between 4% and 5%. Just 11% of companies (compared to 18% of companies last year) said they'll increase base pay by more than 5%, ing to the report.
Even after the rapid inflation of the past 18 months and the recent unprecedented wage growth for lower-wage workers, 21 million workers are still paid less than $15 per hour.
The California $18 Minimum Wage Initiative has qualified for the ballot in California as an initiated state statute on November 5, 2024. A "yes" vote supports increasing the state minimum wage to $18 per hour by 2026 for all employers and thereafter adjusting the rate annually by increases to the cost of living.
Which States are Increasing the Minimum Wage in 2023? Alaska. Arizona. California (all) Colorado. Connecticut. Delaware. Florida. Illinois.
The federal minimum wage is $7.25 per hour. This rate applies to covered nonexempt workers. The minimum wage for employees who receive tips is $2.13 per hour. The amount of tips plus the $2.13 must reach at least $7.25 per hour.
Thus, since California's current law requires a higher minimum wage rate than does the federal law, all employers in California who are subject to both laws must pay the state minimum wage rate unless their employees are exempt under California law.
What is the minimum wage in each state for 2023? State2022 Minimum Hourly Wage2023 Minimum Hourly WageCalifornia$14.00 for employers with 25 or less workers; $15.00 for larger businesses.$15.50 for all employers.Colorado$12.56$13.65Connecticut$14.00$14.00Delaware$10.50$11.7547 more rows ?