What Employers Need to Know About the 2023 Minimum Wage Changes

The year 2023 has arrived, and with it, changes to the minimum wage. While some employers may already be aware of changes to the federal minimum wage and their state’s regulations, other employers may not know what these changes mean for them. In this article, we’ll explain what you need to know about the 2023 minimum wage changes and how they could affect your business.

Federal Changes
The Fair Labor Standards Act (FLSA) sets the federal minimum wage at $7.25 an hour and applies to all non-exempt employees working in the United States. However, Congress has proposed a bill that would raise the federal minimum wage to $15 an hour. As of this writing, this has not made it through Congress. We will keep you posted on any changes that may be on the horizon.

State Changes
In addition to the federal minimum wage, several states have recently implemented their own increases to the minimum wage rate. For example, California introduced a new rate of $15.50 an hour in 2023. New York has been gradually increasing its rate over the past six years, but has specific provisions for certain types of workers and specific counties where they are enforced. Some states are also considering additional increases beyond $15 an hour. So, it’s important for employers to check their local laws before making any decisions regarding wages or salaries.

2023 will bring a lot of changes for employers when it comes to setting wages for employees. It’s important for businesses owners and HR professionals alike to stay informed about any potential changes on both the federal and state levels so that they can ensure compliance with all applicable laws and regulations. By understanding these upcoming changes now, you can avoid potential issues down the road and make sure your business is running smoothly come 2023!

For answers regarding the minimum wage for your business location(s), please contact one of our payroll specialists at 858-999-9531 or hr@innoworksemployment.com