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State Minimum Wage Updates

By December 16, 2020No Comments

State Minimum Wage Updates

 

The following states will update their minimum wages effective January 1, 2021, except where noted otherwise.

Alaska

Alaska will increase its state minimum wage to $10.34 per hour.

Arizona

The Arizona Industrial Commission has updated its Fair Wages and Healthy Families Act notice. The updated notice reflects an adjustment of the state minimum wage to $12.15 per hour.

Tipped Employees: The minimum wage will remain at $9.00 per hour.

Arkansas

Arkansas will continue its annual increases that started in 2019. The state minimum wage will increase to $11.00 per hour.

Tipped Employees: The minimum wage will be $2.64 per hour.

California

California will increase its minimum wage to $13.00 per hour for employers with 25 employees or less and $14.00 per hour for employers with 26 or more employees.

County minimum wage increases will be:

  • Belmont: $15.90 per hour
  • Daly City, Hayward, and Novato: $15.00 per hour
  • San Diego: $14.00 per hour
  • Santa Clara: $15.65 per hour
  • Santa Rosa: $15.20 per hour

Colorado

Colorado will increase its minimum wage to $12.32 per hour.

Tipped Employees: The minimum wage will increase to $9.30 per hour.

Connecticut

Effective August 1, 2021, Connecticut will increase its state minimum wage to $13.00 per hour.

Tipped Employees: The minimum wage will be $6.38 per hour; however, bartenders must be paid $8.23 per hour for hours worked.

Delaware

Delaware will increase its minimum wage to $10.25 per hour.

Tipped Employees: The minimum wage remains at $2.23 per hour.

Florida

Florida announced an $8.65 per hour minimum wage rate, effective January 1, 2021. Effective September 30, 2021, its minimum wage will increase again to $10.00 per hour. The rate will continue to increase each year by $1.00 until it reaches $15.00 per hour in 2026.

Tipped Employees: Florida did not change the tip credit allowing employers to deduct $3.02 from its tipped employees. For 2021, the tipped employee minimum wage rate increases to$5.63.

Illinois

Illinois’ minimum wage will increase to $11.00, with plans to increase it to $15.00 by 2025.

Tipped Employees: The minimum wage increases to $6.60 per hour.

Maine

The Maine Department of Labor has will raise its state minimum wage to $12.15 per hour.

Tipped Employees: The minimum wage increases to $6.08 per hour.

Maryland

Maryland will continue its annual minimum wage increases until reaching $15.00 in 2025.

The minimum wage for employers with 25 or more employees will increase to $11.75 per hour.

The minimum wage for employers with fewer than 25 employees will increases $11.60 per hour.

Massachusetts

Massachusetts will continue its annual minimum wage increases until reaching $15.00 in 2023. The 2021 minimum wage will increase to $13.50 per hour.

Tipped Employees: The minimum wage will increase to $5.55 per hour.

Michigan

Michigan’s state minimum wage will increase to $9.87 per hour.

Tipped Employees: The minimum wage will increase to $3.75 per hour.

Minnesota

The Minnesota Department of Labor and Industry announced updates for the 2021 minimum wage. The updated notice reflects an adjustment of the state minimum wage to $10.08 per hour for any enterprise with annual gross revenues of $500,000 or more and $8.21 per hour for any enterprise with annual gross revenues of less than $500,000.

Additionally, the training wage rate and youth wage rate will be adjusted to $8.21 per hour.

Missouri

Missouri will increase its minimum wage to $10.30 per hour.

Tipped Employees: The minimum wage will increase to $5.15per hour.

Montana

Montana will increase it minimum wage to $8.75 per hour.

Nevada

Effective July 1, 2021, Nevada’s state minimum wage will increase to $9.75 per hour.

New Jersey

The New Jersey Department of Labor and Workforce Development has updated its Wage and Hour Law Abstract notice. The updated notice reflects an adjustment of the state minimum wage for agricultural employers to $10.44 per hour.

The state minimum wage will increase to $12.00 per hour.

Tipped Employees: The minimum wage will increase to $4.13 per hour.

New Mexico

New Mexico will increase its minimum wage to $10.50 per hour.

Tipped Employees: The minimum wage will increase to $2.55 per hour.

New York

New York will increase its minimum wage to $12.50 per hour — except for fast-food workers — beginning December 31, 2020.

Effective July 1, 2021, fast-food workers’ minimum wage will increase to $15.00 per hour.

Ohio

The Ohio Department of Commerce will increase the state’s minimum wage to $8.80 per hour.

Tipped Employees: The minimum wage will increase to $4.40 per hour.

Oregon

Oregon will continue its plan to increase the minimum wage until 2023.

Effective July 1, 2021, the minimum wage will increase to $12.75.

South Dakota

South Dakota will continue its annual increase. In 2021, the minimum wage will increase to $9.45 per hour.

Vermont

Vermont will increase its minimum wage to $11.75.

Tipped Employees: The minimum wage increases to $5.88 per hour.

Virginia

The state requires all legislative branch employees to take online harassment training once every two years; however, there are no requirements for private sector employees. More information can be found here.

Washington

Washington will increase its minimum wage to $13.69 per hour.

Employer Next Steps

If HR Knowledge processes your payroll, please contact your Client Account Manager to inform them of any employees’ hourly rates that need to be changed to meet the new state minimum wage requirements.

 

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This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this content, please contact HR Knowledge at 508.339.1300 or email us.

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