Table 1
Twelve states and D.C. automatically adjust their minimum wages in response to inflation: State minimum wages and minimum wage index method
| State | Current hourly minimum wage | When and how the minimum wage indexed | When indexed changes take place | Notes |
|---|---|---|---|---|
| Alaska | $10.34 | The preceding calendar-year increase in Consumer Price Index for the Anchorage area. | January 1st | |
| Arizona | $12.80 | The August-to-August change in the Consumer Price Index, US city average, rounded to the nearest 5 cents. | January 1st | Flagstaff ($15.50) has a higher minimum wage, indexed the same as the statewide rate. |
| Colorado | $12.56 | First-half of the year to first-half of the year CPI-U for Denver-Aurora-Lakewood area. Estimates by journalists are that the 2023 minimum wage will be $13.64. | January 1st | Denver has a higher minimum wage ($15.87) which increases by the same formula used statewide, and will go up to $17.29 in 2023. |
| Maine | $12.75 | Changed by the August-to-August change in the Consumer Price Index for the Northeast Region, round to the nearest 5 center. | January 1st | Portland, Maine is already planning to raise their minimum wage to $14.00/hour on January 1, 2023, will go to $15.00 on January 1, 2024, and will begin indexing to inflation in 2025. |
| Minnesota | $10.33 | The August-to-August change in price deflator for PCE, or 2.5%, whichever is lower. | January 1st | Minneapolis and St Paul have a higher minimum wage, but are subject to the same indexing rules as the statewide wage . |
| Montana | $9.20 | The August-to-August change in the Consumer Price Index, rounded to nearest 5 cents. | January 1st | |
| New Jersey | $13.00 | The August-to-August change in the Consumer Price Index, US city average. | January 1st | New Jersey is set to increase its minimum wage to $14.00 on January 1st, but state law requires the minimum wage to be the higher of the statutory wage or the indexed wage, and this year’s significant CPI increase means that the New Jersey minimum wage will be higher than $14.00. |
| New York | $13.20 | Annual indexing to be determined year to year in a decision made by Director of the Division of Budget, but the state minimum wage cannot not exceed $15.00. | December 31st | New York City, Nassau, Suffolk, and Westchester counties are all already at $15.00 and will not see an increase for inflation. Fast food workers in New York also already make $15.00. |
| Ohio | $9.30 | The August-to-August change in the Consumer Price Index, US city Average, rounded to nearest 5 cents. | January 1st | |
| Oregon | $13.50 | The March-to-March change in the Consumer Price Index, US city average, rounded to nearest 5 cents. | July 1st | The July 1, 2022, increase was $0.75. The Portland area has a minimum wage set $1.25 higher than statewide, and nonurban counties’ is set $1.00 lower than statewide. |
| South Dakota | $9.95 | The August-to-August change in the Consumer Price Index, rounded to nearest 5 cents. | January 1st | |
| Vermont | $12.55 | Whichever is smaller: 5% or the August-to-August change in the Consumer Price Index, US city average. | January 1st | |
| Washington | $14.49 | The August-to-August change in the Consumer Price Index, US city average. | January 1st | Both Seattle ($17.27) and SeaTac ($17.54) have higher minimum wages, but they are indexed the same as the statewide rate. |
| Washington, DC | $16.10 | The preceding calendar year’s increase in the Consumer Price Index, rounded to the nearest five cents. | July 1st | Most recent increase, which took effect on July 1, raised the minimum wage from $15.20 to $16.10. |
Source: Authors' analysis of EPI Minimum Wage Tracker and state minimum wage legislation.
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