Minimum wage increases taking effect July 1, 2022
Many states and cities are increasing minimum wage rates in the second half of 2022. With the exception of Florida’s increase set to occur on September 30, most of these changes are taking effect on July 1. The rate increases impact non-exempt employees and tipped workers.
Minimum wage changes on July 1, 2022
Take a look at the list below to see if minimum wage rates are increasing in your area, and head over to your state labor law guide to learn more about your local compliance laws. You can also check out the minimum wage changes that occurred earlier this year in our article.
California
California raised the statewide minimum wage rate to $14 for small employers with 25 or fewer employees and $15 for large employers on January 1, 2022. However, many jurisdictions are taking it a step further on July 1:
- Alameda: $15.75
- Berkeley: $16.99
- Emeryville: $17.68
- Fremont: $16.00
- Foster City: $15.75
- Long Beach (hotels with 100 or more guest rooms): $16.73
- Los Angeles City: $16.04
- Los Angeles City (hotels with 150 or more guest rooms): $18.17
- Unincorporated Los Angeles County: $15.96
- Malibu: $15.96
- Milpitas: $16.40
- Pasadena: $16.11
- San Francisco: $16.99
- Santa Monica: $15.96
- Santa Monica (hotels): $18.17
- West Hollywood (1–49 employees): $16.00
- West Hollywood (50 or more employees): $16.50
- West Hollywood (hotel workers): $18.35
Note: California doesn’t allow a reduced minimum wage for tipped employees.
Connecticut
The statewide minimum wage rate in Connecticut will increase to $14.00. The rate for tipped service employees will remain at $6.38 per hour and $8.23 for tipped bartenders.
District of Columbia
The district-wide minimum wage rate will increase to $16.10 for hourly employees and $5.35 for tipped employees.
Illinois
Two jurisdictions in Illinois will increase minimum wage rates:
- Chicago (businesses with 21 or more employees): $15.40 for hourly employees, $8.70 for tipped employees
- Chicago (businesses with 4-20 employees): $14.50 for hourly employees, $9.24 for tipped employees
- Cook County: $13.35 for hourly employees, $7.40 for tipped employees
Montgomery County, Maryland
Montgomery County is increasing minimum wage rates to the following:
- Businesses with 51 or more employees: $15.65
- Businesses with 11 to 50 employees: $14.50
- Businesses with 10 or fewer employees: $14.00
The tipped minimum wage rate will remain at $4.00.
Minnesota
Several minimum wage rates are increasing in Minnesota jurisdictions:
- Minneapolis (businesses with 100 or more employees): $15.00
- Minneapolis (businesses with fewer than 100 employees): $13.50
- Saint Paul (businesses with 10,000 or more employees): $15.00
- Saint Paul (businesses with 101 to 10,000 employees): $13.50
- Saint Paul (businesses with 6-100 employees): $12.00
- Saint Paul (businesses with 1-5 employees): $10.75
A reduced minimum wage for tipped employees is not allowed in Minnesota.
Nevada
Nevada is increasing its statewide minimum wage rate to $9.50 for businesses that offer health insurance benefits, and $10.50 for businesses that don’t. A reduced minimum wage rate for tipped employees is not allowed in Nevada.
Oregon
The Oregon statewide minimum wage rate will increase to $13.50. Portland will implement the following changes:
- Metro businesses (those located within the “urban growth boundary of a metropolitan service district”): $14.75
- Businesses in non-urban counties: $12.50
A reduced minimum wage rate for tipped employees is not allowed in Oregon.
Have more compliance questions? Homebase has an expert team ready to help with your toughest concerns. With HR Pro you can talk live with a certified advisor, have an expert review your policies, and gain access to our extensive HR resources library, full of templates, guides, and trainings.