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Payroll

2022 Minimum Wage and Overtime Salary Threshold Increases

Deborah Tam, CPP  

Deborah Tam, CPP  

A new year brings minimum wage increases in 21 states while Connecticut and Florida will increase their minimum wage rates later in the year. Minimum wage rates will also increase in many localities around the nation.  

Minimum wage rate adjustments have not yet been determined for the District of Columbia, Nevada, and Oregon which are scheduled to take effect on July 1 of this year. 

Arizona

$12.80 per hour, $9.80 per hour for tipped workers.  

  • Flagstaff. $15.50 per hour, $13.00 per hour for tipped workers. 

California

$15.00 per hour (26 or more employees) 

$14.00 per hour (fewer than 26 employees) 

The state does not permit the use of a tip credit.  

  • Anaheim (applies to Anaheim hospitality employers with 25 or more employees that receive city subsidies). $18.00 per hour 
  • Belmont $16.20 per hour 
  • Cupertino $16.00 per hour 
  • Daly City $15.53 per hour 
  • El Cerrito $16.37 per hour 
  • Half Moon Bay $15.06 per hour 
  • Hayward City $14.52 per hour (small employers, 25 or fewer workers); $15.56 per hour (more than 26 workers) 
  • Los Altos $16.40 per hour 
  • Menlo Park $15.75 per hour 
  • Mountain View $17.10 per hour 
  • Novato $15.77 per hour (100 or more workers); $15.53 per hour (26-99 workers); $15 per hour (1 to 25 workers) 
  • Oakland $15.06 per hour 
  • Palo Alto $16.45 per hour 
  • Petaluma $15.85 per hour 
  • Redwood City $16.20 per hour 
  • Richmond $15.54 per hour 
  • San Carlos $15.77 per hour 
  • San Diego $15.00 per hour 
  • San Jose $16.20 per hour 
  • San Mateo. $16.20 per hour 
  • Santa Clara $16.40 per hour 
  • Santa Rosa $15.85 per hour 
  • Sonoma $15 per hour (25 or fewer workers); $16 per hour (26 or more workers) 
  • South San Francisco $15.80 per hour 
  • Sunnyvale $17.10 per hour 
  • West Hollywood Hotel workers: $17.64 per hour. Employers with 50 or more employees: $15.50 per hour. Employers with fewer than 50 employees: $15.00 per hour. Effective July 1, 2022: Hotel workers: $18.31 per hour. Employers with 50 or more employees: $16.50 per hour. Employers with fewer than 50 employees: $16.00 per hour. 

Colorado

$12.56 per hour; $9.54 per hour for tipped workers 

Non-emancipated minors: $10.68 per hour 

Agricultural range workers: $515.00 per week 

  • Denver. $15.87 per hour; $12.85 per hour for tipped workers) 

Connecticut

$13.00 per hour; $6.38 per hour for service employees (hotel and restaurant industry, excluding bartenders); $8.23 per hour for bartenders. 

Effective July 1, 2022: 

$14.00 per hour; $7.62 per hour (hotel and restaurant industry, excluding bartenders); $5.77 per hour (bartenders) 

Delaware

$10.50 per hour; $8.27 per hour for tipped workers 

Florida

Effective September 30, 2022:  

$11.00 per hour; $7.98 per hour for tipped workers 

Illinois

$12.00 per hour; $7.20 per hour for tipped workers. 

Maine

$12.75 per hour; $6.38 per hour for tipped workers 

  • Portland. $13.00 per hour; $6.50 per hour for tipped workers 
  • Rockland. $13.00 per hour; $6.50 per hour for tipped workers) 

Maryland

$12.50 per hour (employers with 15 or more employees) 

$12.20 per hour (employers with fewer than 15 employees) 

$3.63 per hour for tipped workers 

  • Howard County. Effective April 1, 2022, $14.00 per hour; $12.50 per hour (employers with fewer than 15 employees, 501(c)(3) organizations, home health services that receive 75% revenues from state and federal Medicaid programs, and food service facilities) 
  • Montgomery County. Effective July 1, 2022, $14.50 per hour; $14.00 per hour (employers with fewer than 11 employees); $4.00 per hour for tipped workers 

Massachusetts

$14.25 per hour; $6.15 per hour for tipped workers. 

Michigan

$9.87 per hour 

$8.39 per hour (minors aged 16 and 17) 

$3.75 per hour for tipped workers 

Minnesota

$10.33 per hour (employers with gross volume of sales of $500,000 or more) 

$8.42 per hour (employers with gross volume of sales of less than $500,000) 

$8.42 per hour (workers under 18 years of age) 

The state does not permit the use of a tip credit. 

  • Minneapolis. Effective July 1, 2022, $15 per hour for large businesses (more than 100 employees); $13.50 per hour for small businesses (100 or fewer employees). 
  • St. Paul. July 1, 2022, $15.00 per hour for businesses with 10,000+ employees;  $13.50 per hour for businesses with 101 to 10,000 employees;  $12.00 per hour for businesses with 6-100 employees; $10.75 per hour for business with 5 or fewer employees. 

Missouri

$11.15 per hour; $5.575 per hour for tipped workers 

Montana

$9.20 per hour 

$4.00 per hour for most employers with annual gross sales of $110,000 or less 

The state does not permit the use of a tip credit. 

New Jersey

$13.00 per hour for employers with 6 or more employees 

$11.90 per hour for employers with 5 or fewer employees 

$10.90 per hour for agricultural workers 

$5.13 per hour for tipped workers 

New Mexico

$11.50 per hour; $2.80 per hour for tipped workers 

  • Albuquerque. $11.50 per hour /$10.50 per hour if benefits are provided equal or in excess of $2,500 annually; $6.90 per hour for tipped workers 
  • Bernalillo County. State minimum wage supersedes ordinance 
  • Las Cruces. $11.50 per hour; $4.60 per hour for tipped workers 
  • Santa Fe. Effective March 1, 2022, $12.95 per hour. 

New York

  • New York City. $15.00 per hour 
  • Long Island and Westchester. Effective December 31, 2021, $15.00 per hour 
  • Other areas: $13.20 per hour 

Tip credit varies based on occupation. 

Ohio

$9.30 per hour; $4.65 per hour for tipped workers 

Rhode Island

$12.25 per hour; $3.89 per hour for tipped workers 

South Dakota

$9.95 per hour; $4.975 per hour for tipped workers 

Vermont

$12.55 per hour; $6.28 per hour for tipped workers 

Virginia

$11.00 per hour 

The law requires employers to pay a tipped worker wages and tips to meet the state minimum wage. 

Washington

$14.49 per hour 

The state does not permit the use of a tip credit. 

  • Seattle. $17.27 per hour; $15.75 for employers with 500 or fewer employees who pay $1.52 per hour towards benefits or employees receive $1.52 per hour in tips 

Garnishment limits

State garnishment limits may be impacted by a change in the minimum wage rate.  

Example 1: In Illinois, the maximum amount that can be withheld from wages for a creditor garnishment is the lesser of Lesser of 15% of gross weekly wages or amount over 45 times the state minimum wage of $12.00 per hour in 2022 ($540 per week)..  

Example 2: In California, the maximum amount that can be withheld from wages for a creditor garnishment is the lesser of 25% of weekly disposable income or 50% of the amount by which the individual’s disposable earnings for the week exceed 40 times the greater of either the state or local minimum wage rate in effect where the debtor works when the earnings are payable.  

The state’s minimum wage in 2022 is $15.00 per hour for employers with 26 or more workers. The local minimum wage in Belmont is $16.20 per hour. Because the minimum wage in Belmont is greater than the state minimum wage rate, this rate is used to determine which is the “lesser of” in the determining the maximum garnishment. 

It is crucial that payroll professionals familiarize themselves with minimum wage rates for garnishment calculations in 2022. 

For further information on creditor garnishment, visit the Quick Reference Chart on Checkpoint Edge at Payroll Guide ¶17,080 (Highlights of state rules for creditor garnishment). 

Overtime salary threshold limits

The overtime salary threshold limits will increase for the following states:  

California To qualify for the overtime exemption, a computer software professionals must earn at least $50.00 per hour or $104,149.81 annually ($8,679.16 monthly). 

To qualify for the overtime exemption, licensed physicians and surgeons must earn at least $91.07 per hour. 

Colorado To qualify for the overtime exemption, workers must earn at least $865.38 per week ($45,000 per year). For computer professionals, they must earn at least $28.92 per hour.  

Maine To qualify for the overtime exemption, workers must earn at least $735.58 per week ($38,250 per year). 

New York The salary threshold for the overtime exemption varies based on geographical location. For Long Island and Westchester County and New York City, workers must earn at least $1,125 per week ($58,500 per year). For all other areas in New York State, workers must earn at least $990 per week ($51,480 per year). 

Washington To qualify for the overtime exemption, workers must earn at least $1,014.30 per week ($52,743.60 per year). Computer professionals must earn at least $50.72 per hour to be exempt from overtime. 

Try Checkpoint Edge FREE for 7 days and get instant access to Quick Reference Charts on minimum wage rates (Payroll Guide ¶19,010) and overtime and time off requirements (Payroll Guide ¶19,021).  

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